How to save on your Home Insurance

November 1, 2006 By Matthew Paulson

Premiums are calculated in differing ways, this is why we see a disparity between the various offerings in the marketplace. For example, the cost gap between ASDA Home Insurance and L&G Home Insurance is purely accreditable to the unique way each lender sizes things up. However, there are a few common rules when a value is being drawn up. Home Insurance is usually centred around the cost of rebuilding the residence from scratch. There is also a great deal of thought taken in weighing up the possible risks that are specific to each property. For instance, a premium may be higher if the house location is perceived to be of a great risk or if the security is not up to scratch. The related premium is usually paid to the insurer on a monthly basis for the duration of the pre-determined set period of time. Many homeowners find their house insurance premiums can be costly, but then the price can be lowered in various ways:

Shop around:
With the vast quantity of organizations offering home insurance deals, it does seem an unachievable and lengthy task. But then, there are comparison websites around which will identify and compare house of life insurance data on your behalf.

Get in touch with the provider:
The consumer can discuss with them the assessment of their residence and come to find why the premiums are as they are.

Reduce the risk:
It could then be a case of installing burglar alarms, window and door locks or fire alarms, depending on the recommendations of the insurer. The less likely a home is to be damaged or burgled, the lower the risk is to the insurer and the premiums reflect the level of that risk.

Premium rates can be flexible:
Yet again discussion, and an element of bartering with the insurer, can usually have an impact on the rate of premiums in favour of the consumer.

Raise the excess on the policy:
The consumer generally has to pay £50 to any claim made, but a willingness to pay more can frequently be beneficial.

Consider carefully whether to claim or not:
The decision whether or not to really make a claim can also impact these costs. A consumer with a history of ‘no claims’ is more likely to be offered lower premiums than one who has made many. Prudent consumers may in fact cover the costs of lesser damages themselves, maintaining their ‘no claims’ status. This can have a dramatic impact on premiums.

Look at your lifestyle:
Surprisingly, some insurers can assess a person’s lifestyle when assessing their application. Drinking alcohol, smoking and keeping a pet can have an affect on an insurer’s judgement.

Security:
With regard to personal valuables, an insurance company is likely to be a great deal more favourable if a safe is available and the items are kept locked in it.

Under-insuring:
Not specifically a money-saving tip but it can save you from being severely out of pocket if you need to claim. Keep an annual inventory, keeping receipts and making certain valuable individual goods are covered is advisable.

Plan down the road:
If a claim has not been made, a home insurance policy can generally be cancelled with a complete refund. Knowing this, the consumer can ‘keep an eye on the market’ and switch insurers if a suitable deal becomes available, without having to stall for their existing insurance to expire.