With the Cost of Living Crisis in full force, many are looking to cut costs. Read on to find out how you can save money on your Home Insurance without jeopardising your cover.
If you’re looking to trim your outgoings and keep more cash in your pocket, you may want to make some savings on your Home Insurance.
To help you, we’ve put together 6 top tips on how you can get better value from your Home Insurance cover.
1. Shop around
It’s age-old advice, but that’s because it is excellent guidance. If you want to save money on your Home Insurance, you need to shop around and compare quotes.
This means that you shouldn’t take up a policy with your mortgage provider automatically. Nor should you accept a renewal quote from your current provider without seeing if there is a more tempting offer elsewhere. You can do this easily by talking to our experienced Personal Insurance team, who can scour the market for you to find the best deals.
2. Look into doubling up
Buying your Contents Insurance and Building Insurance together can sometimes lead to discounted premiums from insurance providers, so it’s well worth investigating this. However, this will depend on the cover you need, so make sure you still check out individual policies elsewhere.
And remember: you only need Building Insurance if you own your home. If you rent, you just need Contents Insurance.
3. Only buy what you need
Overestimating the amount of cover you need could unnecessarily push up the cost of your premium.
For this reason, it’s important to look at all of your contents and estimate their value as accurately as you can. You should also carefully consider any extras you need. It’s possible that Accidental Damage Cover or extended Garden Cover, for instance, just isn’t needed. When you buy a new item, such as a TV, you may be offered additional insurance to cover it, but make sure that you check your policy first. A standard Home Insurance policy may already provide enough protection.
For your Buildings Insurance, it’s very important to not confuse the rebuild cost of your home with its market value. The latter is what your house would be worth on the market if you decided to sell it. The rebuild cost, however, is how much it would cost to rebuild your home from scratch. Your Buildings Insurance should be based on the rebuild cost, which is likely to be lower than your property’s market value, although this gap is shrinking due to increasing labour and material costs.
If you have a standard home, you can use the rebuild calculator from the Association of British Insurers (ABI) to accurately estimate how much it would cost to completely rebuild your home. This will include possible demolition costs and professional fees. For non-standard homes, it’s best to talk to a chartered surveyor.
4. Pay for the whole year upfront
While spreading the cost of your Home Insurance over the year may be helpful for budgeting, it may end up costing you more due to the added fees and interest. If you can, paying for the whole year upfront can therefore be a handy money-saver.
If paying monthly is your preferred method, try negotiating with the insurer to see if you can spread your payments out interest-free over a time period that is manageable to you. It’s always worth asking!
5. Increase your excess
Bumping up your excess can help to bring down your Home Insurance premium. This is because it decreases the amount your insurer will have to pay if you make a claim. However, while this is a useful way of reducing the cost of your premium overall, you need to be sure that you will be capable of covering this excess in the event of a claim. Otherwise, you could find yourself running short.
6. Boost your home’s security
If you take some additional measures to keep your home safe, you may be rewarded by insurers with a lower Home Insurance premium. This is because it reduces the risk of you needing to make a claim. Installing security lighting, insulating your water pipes and cutting down tall trees near your property may all make a difference.
If you’re in a flood risk area, it is also a good idea to see if your prospective insurer is signed up to the Flood Re scheme. This scheme makes insurance more affordable for those who live in flood risk areas, but not all insurers are members so make sure you ask before taking out a policy.
Want us to find your new Home Insurance policy?
If you want our experienced team to find the best-value deal for you, get in touch today. You can call us on 0800 917 2274.
