Home insurance is one expense that you can’t do without. Should the worst happen, it ensures that you’re covered against losses and might even provide you with temporary accommodation. Insurance prices always seem to be rising, though, so here are a few tips to help you find the best price.
1 Compare
First and foremost, comparing insurance quotes is important. Insurers don’t reward loyalty and will often put you on a more expensive premium if you stay with them for several years in a row. Instead, compare home insurance costs and extras using an aggregator site. These pull together quotes from hundreds of different providers, making it easy to find the best price matched with the best cover.
2 Pay annually
Another simple but important tip. Paying annually represents a big initial outlay, but if you can afford it, it’s worthwhile. Monthly payments accrue interest that adds up to a substantially higher final total. Any insurance is invariably cheaper when paid in a single, lump sum, so bear this in mind when you compare quotes. Budgeting well ahead will help you to shoulder the one off fee.
3 Make your home more secure
Of course, the more secure your home is, the lower the insurance quote will be. This means fitting devices like cameras, lights and locks, and ensuring that all your security devices are up to date and comply with the latest regulations. New smart home devices can cut insurance costs even more, and innovative technology like the mosquito anti loitering device make a difference, too. These alarms use high frequency sounds (indiscernible to older people), which force groups of youths to disperse. They’re fantastic for the elderly but useful for anyone who has trouble with loitering. If the insurer knows that your home is extremely secure, they’re much more likely to offer you a lower quote.
4 Build up no claims
The no claims bonus isn’t a miracle solution to high insurance premiums and it takes some time to build up, but it does make a difference. A no claims bonus is just that; a discount awarded to customers who don’t make claims. The bonus is counted in years, so it increases annually. Best of all, it’s transferred between insurers, so building up a no claims bonus with one company helps you to find cheaper quotes across the board. Avoid claiming for small problems that you can fix yourself and let the bonus build up.
5 Don’t over insure
While it is advisable to err on the side of caution when taking out insurance, some homeowners simply go too far. A sky high excess, overvaluation of contents and additional extras that you don’t need will all push the price up. Try to keep your excess as low as (reasonably) possible. While a high excess pushes your premium down, it means more cost if you do need to make a claim. Think carefully about the extras you add – do you really need increased garden or bicycle cover? Is legal protection necessary?
