The cost of home insurance rises year upon year, therefore it is important that you shop around annually to make sure that you are getting the very best deal rather than simply renewing your home insurance policy with your existing provider. There are three types of home insurance policies available; buildings insurance, contents insurance, and combined buildings and contents insurance. If you own your own home then you should take out a combined buildings and contents policy, if you rent out your property then a buildings insurance policy is a must, and if you are a tenant then you should take out contents insurance to safeguard your personal possessions. Whichever type of policy you take out there are steps that you can take to get the best out of your policy, and to save money on premiums.
If you require both buildings and contents cover then you will usually find that taking out a combined policy is cheaper. However, check the small print before you buy as some insurers will charge a separate excess for both parts of the policy leaving you with two sums of money to find if you were to make a claim for both the structure of your property, and its contents.
If you are taking out buildings cover then you can save money by making sure that you are not over-insured. Many people make the mistake of insuring their property for its full market value rather than for the cost of rebuilding the property if it was damaged beyond repair. The rebuild value of your property is most often significantly less than its full market value, and can be found in your survey documents that should have been provided to you when you purchased the property.
When it comes to contents insurance any problems that may arise are most likely down to under rather than over-insuring. When calculating the full value of the items within your home it can be useful to walk through every room and make a full itinerary of the items you own along with their associated value. You may find that your personal possessions are worth more than you think. Underestimating the value of the contents of your home can leave you with a significant shortfall if you were to make a claim, which in turn could prove to be financially disastrous.
When you apply for home insurance you will be asked what type of locks are fitted to your outside doors. The most secure locks will lower your premiums so it pays to make sure that the locks you have fitted are up to scratch. If you tell your insurer that you have a certain type of lock and this information is incorrect then it could invalidate your policy so make sure that you do your homework first.
All types of home insurance policy carry a compulsory excess which is the amount of money that you have to pay yourself should you need to make a claim. You also need to set a voluntary excess; the higher this excess then the lower your premium. However, although a high voluntary excess will result in a deduction to your premium it can be a false economy as in the event of a claim you will need to pay more. Only set this figure to an amount that you can comfortably afford.
Many of us opt to pay for our home insurance in monthly installments. However, bear in mind that this option is infact a loan, and like all loans it can include interest. The interest rates vary considerably between insurance providers so shop around for the best deal if you prefer to pay for your insurance on a monthly basis. It can sometimes be cheaper to pay for your insurance in full using a credit card with a low APR.
Using a price comparison site is a popular way of shopping for home insurance online. However, it pays to be aware that not all insurers are featured on comparison sites. By relying exclusively on price comparison sites you can often miss out on a good deal, so use a mixture of comparison sites, and personal online browsing to widen your search.
If your existing insurer sends you a renewal quote that is more expensive than previously but you would rather avoid the hassle of switching your provider then give them a ring. Many insurers are happy to revise their quotes if they know you plan to leave so haggling can both save you money and save you time spent on switching.
There are a number of cashback sites operating online and they can be a great way of lowering the cost of your insurance. If you do find a quote that you are happy with then remember to also pay a visit to a reputable cashback site and make your purchase via them; you’ll often be amazed at the additional amount of money that you can save.
By shopping around and taking time to research the home insurance products that are available you can significantly lower your premiums. Don’t simply stay with the same provider year upon year out of convenience or habit. Regularly review the amount of cover you have in place to ensure that it is adequate, and get quotes from a number of different providers before you sign on the dotted line.