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Here are some invaluable hints and tips to help you cut the cost of your home and contents insurance.
1. Don't pay twice for your cover
Many people have personal possessions such as mobile phones; cameras and jewellery covered on a household insurance policy so don't pay again for it to be covered on your travel insurance policy. Home insurance plans typically offer more comprehensive cover for such items and are likely to charge less. Travel insurance may only pay out a maximum limit of £200 for these possessions if they are lost, stolen or damaged. Most contents insurance policies will also provide cover for broken glass in furniture; so don't pay twice by buying the policies that furniture companies may try to sell you at the time of purchase. Some of your financial products may be getting a bit old and dusty and in need of replacing, whereas others are proving to be a huge drain on your resources and need to be scrapped as soon as possible.
2. Improve your security to benefit from insurance discounts
Consider improving the security of your home. Many home insurance companies will offer a discount if:
- You are an active member of a registered Neighbourhood Watch scheme.
- A burglar alarm is installed. Note that many home insurance companies will only offer a discount if the alarm is installed by a contractor approved by the National Approval Council for Security Systems (NACOSS). In addition, some home insurance companies may require you to have a maintenance contract with a company registered with the National Approval Council for Security Systems.
- Smoke alarms are installed.
- All windows have key operated locks.
- All exit doors are fitted with a British standard approved lock.
3. Pay small claims yourself
If you claim on your household insurance, premiums are likely to increase the following year. So pay all minor claims you can afford yourself, this is likely to save you money in the long run. Many home insurers offer a no claim discount if you have a claim free history. The discount will usually increase in line with the number of claim free years.
4. Opt for a higher excess
If you can afford it consider paying a higher excess on your policy, so rather than paying the first £50 of any claim, consider paying the first £100 or £150. This can significantly reduce the monthly cost of your home insurance, although it does mean you will have to pay more when you do claim so don't opt for more than you can reasonably afford. It could be an effective way for you to save money.
5. Shop Around
Half an hour on the Internet could save you hundreds of pounds. Obtain an instant quote via the moneynet home insurance page and see how it stacks up against your current insurance deal.
6. Buy your cover online
If you buy your home insurance online many insurers will offer you a discount of up to 20% or 30%.
7. Purchase both buildings and contents insurance together
Purchase both buildings and contents insurance at the same time and most insurers will provide an additional discount. Just to prove that the last two tips are true, check out this current home insurance offer from Nationwide Building Society. Not only do you get a massive 25% discount for buying both home and contents cover, you also get an extra 5% for buying online, plus there are no extra charges for paying your premium monthly. Just click here to find out more.
8. Pay your premium in a single annual payment
If you can afford to pay your home insurance premium in a single payment you'll save money. Many insurers charge a hefty interest rate on a home insurance policy if you decide to pay monthly.
9. Consider renting a safety deposit box
While none of us like the idea of keeping our most prized possessions safely locked away in a safety deposit box, if you have one or two very valuable personal items, you may well find it cheaper to keep these in a safety deposit box and only bring them out on special occasions rather than pay an expensive insurance premium to keep them on-hand all the time.
10. Don't be shy, haggle for a better deal
The home insurance market is very competitive and companies are desperate to keep you as a customer. So don't be afraid to pick up the phone and try to haggle with your existing insurer, after all if they can beat or even match the best quote you've been offered online it saves the hassle of switching insurers.
11. Don't automatically take the cover offered by your lender
More than half of people taking their first step onto the property ladder and arranging insurance - almost 200,000 people each year -still automatically buy their cover through their mortgage lender, even though organising it that way can cost up to 30% more due to the massive commissions that lenders take on insurance sales.
Some mortgage lenders make it difficult for people to break free from their policy, by forcing people to pay a penalty fee for switching their insurance to an alternative provider, however you will find that some insurance providers are happy to pay this fee on your behalf just to secure your business.
Hopefully the hints and tips above will enable you to reduce your home insurance costs and put a bit more cash back into your pocket.
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