Every penny helps and if you can reduce the cost of your home insurance, that’s a few more pounds that stays in your pocket.
Insurance companies like to encourage homeowners to take responsibility for their own property and possessions, and in many cases offer discounted annual premiums to people who can show they are acting to keep their property in good repair and to protect their possessions.
In 2007, insurance companies paid out £12.4 million under buildings and contents policies for damage or loss to property or possessions.
Here are a few tips that are easy for most people to carry out that insurance companies will reward by knocking some money off your premiums:
- Fit a burglar alarm – if you install an insurance company approved alarm, your premium can go do as much as 7.5%
- Earn more discount by putting up security lights, time-switch lights inside and CCTV. Securing windows with locks and doors with Level 5 (BS3621) mortise deadlocks will knock up to 10% from contents insurance.
- Many insurers reduce premiums if a property has heat and smoke detectors fitted.
- Join the local Neighbourhood Watch. Some companies will give a small discount if you are community-minded
- Try to build a no-claims discount by not claiming on your insurance unless you really have to. No claims discounts can be protected for a small amount each year. Work out whether the extra cost is saves you money.
You should also be able to transfer your no claims discount between insurers, just like you can with a no claims discount on your car insurance.
- Don’t pay monthly and save the interest charges. You can always put the money in the bank every month and earn interest yourself.
- Most insurers set compulsory £50 excess. Pay more if you can – the more you agree to pay of the first claim, the lower your premium will fall.
- Don’t double up on insurance – for instance, insuring your mobile phone separately against damage or loss is probably pointless because your contents insurance will probably already include the cover.
- Don’t stick your buildings and contents cover with the same provider unless both deals are competitive. Separate the policies as some providers give good buildings cover and others better contents cover.
- Haggle with your current insurer for a cheaper deal; don’t just automatically renew your policy. If the insurer won’t give you a better price, ask for some free extra cover to reward your loyalty.
Most of these tips help reduce the cost of contents cover. There’s not much many people can do to reduce the cost of their buildings insurance other than put a maintenance programme in to place to catch small repairs before they cause major damage.
For instance, blocked gutters or slipped tiles can cause damp that damages plaster and brickwork. Regularly clearing the gutter or replacing a broken tile when you first spot it is a lot less hassle than having the inside walls plastered and redecorated.
