Saving money on your home insurance

January 31, 2016

Whether you are renting or buying, it doesn’t take a great deal of time to fill your home with the many things you need and use and possessions for which you have saved and treasure.

Home contents insurance is designed to safeguard all of these belongings against theft, loss and damage.

If you own your home, of course, your investment is likely to have been considerably higher and there are bricks and mortar to safeguard against such potentially devastating perils as flooding, fire, storm damage, impacts and vandalism.

Home building insurance is designed to protect the structure and fabric of your home against these risks.

Your home insurance is important, therefore, but how might you save money on the cost of the premiums?

Expert advice

• one of your first steps might be to consult a specialist provider with many years of experience in arranging such cover;

• the government backed Money Advice Service suggests that a reputable broker is often in the best position to find the cover you need at a highly competitive price;

• here at Alan Blunden Insurance Brokers, we can claim around 70 years’ of experience and expertise in the provision of home insurance – allowing us to match your individual needs to the appropriate products on the market, at a price that is also likely to save you money;

Buildings insurance

• the premiums you pay are determined by the total sum insured;

• in the case of the building itself, this needs to reflect the current cost of completely rebuilding your home in the event of a major event leading to its total loss;

• to avoid over insuring the building – and paying more than you need for the insurance premiums – it is important to remember that rebuilding costs are not the same as the price you paid for your home or its current market value;

• instead, you might want to refer to the building cost look up service offered by the Royal Institute of Chartered Surveyors (RICS) to establish the current reconstruction costs;

Contents insurance

• on the other hand, there is a tendency for many householders to under-estimate the value of their belongings – an oversight which might result in any contents insurance being insufficient to cover the cost of repairs or replacement in the event of a claim;

• saving money in the longer run, therefore, might depend on your being certain to conduct a careful room-by-room inventory of all the contents and to keep that valuation up to date;

No claims discounts

• it may only take a few years to build up a healthy no claims discount on your home insurance premiums;

• if you are looking to save money on costs, therefore, it is important to claim any no claims discount to which you may be entitled;

Excesses

• in common with most other forms of general insurance, the policy for you home building and contents typically incorporates an excess – which may vary from one type of claim to another;

• in order to save money on your premiums, you might want to consider accepting a higher rate of excess – which you nevertheless still need to pay in the event of a claim.

The value of your property and the contents of your home may be greater than you think. Conducting a review of the scope and value of your home insurance, therefore, may prove well worthwhile and present you with opportunities for saving money into the bargain.