If you are a homeowner, then insuring your house and contents is one of life’s necessities. It offers you financial protection should something happen to your home, and you’re left needing to make costly repairs or replacing high value items.
However, this protection comes at a cost which can run into the thousands of pounds a year. Which is why many people look to save money on home insurance, without reducing the level of cover it provides.
Here are our tips to how you can save money on yours.
Cut Out Unnecessary Extras
Cutting out unnecessary frills helps shave money off your policy by removing cover for things you don’t need. These are typically add-ons (such as accidental damage cover) that do not come as standard with an insurance policy.
If you’re not sure if your policy contains any extras that you can live without, get in touch with your insurance company and ask them to provide you with details. You can then make an informed decision on which you’d like to keep or remove.
Pay Your Insurance Annually
When you take out an insurance policy, you are given the choice of paying it annually (one payment) or monthly (12 payments). When you choose to pay your insurance premiums on a monthly basis, you will also pay interest. This means you will end up paying more for the same premium. By choosing to pay annually you could save hundreds of pounds over the year.
Increase Your Policy Excess
Your insurance excess is the amount you pay in the event of a claim. The more excess you pay, the lower your policy premiums will be. However, whilst a higher policy excess results in lower monthly/annual premium payments, it also means that you will need to pay the higher excess cost in the event of a claim.
In deciding on whether to increase your excess or not, we recommend contacting your insurer for examples of the amount by which a higher excess will lower your premiums so you can weigh up the financial benefit.
Build Up A No-Claims Discount
A no claims discount is a reduction of insurance premiums based on the amount of time since your last claim. By having a no claims discount, you are seen as a trustworthy person to insure, and more likely to be granted cover in the future as you are considered low risk. One way to build up your no claims discount is to try and pay your own way for small items rather than claim on your insurance. For example, rather than make a claim for a broken television, buy a new one yourself or pay to get it fixed thereby protecting your no claims discount.
Don’t Be Afraid to Shop Around
Having an insurance quote from an existing insurer does not mean you have to accept it. Shopping around allows you to directly compare costs, negotiate between insurers and find the best quote for you. When researching costs and new providers use comparison websites, speak directly with insurers, talk to your mortgage supplier and ask friends and family for recommendations. A few hours of research could save you hundreds of pounds in the longer term.
When researching also consider the cost benefits of purchasing contents and building insurance separately versus a combined package. More often than not a combined packaged is cheaper and more convenient. But in certain cases having your buildings and contents insurance with different insurers might prove more cost effective. It’s certainly worth exploring all options for the sake of saving money.
Tangible Building Services are a specialist building company experienced in carrying-out buildings insurance claims repair and reinstatement work. Wherever our customers are within the insurance claim process we’re on their side to ensure their claim and building repair work is swift and stress-free.
If your property has been damaged and you are in the process of making an insurance claim, please feel free to contact Tangible Building Services for advice. Call us on 0800 328 4188.