Last Updated on Mar 13, 2020 by James W
Properly insuring your home is both an expensive and complicated process, but it doesn’t need to be. Here’s how you can save money on your home insurance.
What’s Essential
For starters, cutting out any unnecessary policies is the first thing you should do. There are two major types of cover that any homeowner needs: buildings insurance and contents insurance. You’ll need buildings insurance to cover you against any damage to the property–such as major structural damage, from disasters like floods or landslides. While this isn’t compulsory by law, it is often insisted upon by mortgage lenders.
Secondly, there’s contents insurance. While this also isn’t mandatory, it’s highly recommended that you insure the possessions in your home–whether you own the property or you’re renting. Terms and conditions can vary between policymakers, but you can expect a typical plan to include cover against damage from natural disasters like floods and storms, damages caused from a fire, and vandalism or malicious damage. Certain providers such as AXA Home Insurance offer buildings and contents insurance under the same package to save you money.
The Best Ways to Save Money
Get your numbers right: When it comes to negotiating your buildings insurance a common mistake is to cover the house’s market value–the amount you could expect to sell it for–instead of the rebuild value–the amount that it would cost to rebuild the property if it was heavily damaged. This often ends up with people paying over the odds for their policy because they didn’t their numbers right. Similarly, make sure you add up the value of all your possessions correctly before you negotiate your contents insurance. Even items that seem insignificant can add up in bulk.
Pay your premiums annually: Paying your premium in one large fee will be cheaper than spreading it out across the year. While it can be more convenient to separate your payments into monthly installments, you should be aware that firms also charge an additional admin fee for this. If your budget allows it, try to make a one-off payment each year.
Secure your property: Many insurance providers look more favorably on customers who make an extended effort to secure their home. Simple installations like a high-quality burglar alarm or premium locks on the doors and windows can make a big difference.. But not just any alarm. It’s in your insurer’s interest that you take out any measure you can against the possibility of theft so they’ll reward you with improved premium or excess rates.
