Since you have invested a considerable amount in your home, it makes sense to safeguard it against all manner of perils that may result in loss or damage. The answer, of course, lies in home insurance. But in these straightened times of austerity, what about the cost of that cover? What are the ways of cutting the costs?

Combined building and contents insurance

• home insurance is the term used to describe two different elements of cover – building insurance, to protect against loss or damage to the physical structure and fabric of your home, and contents insurance to safeguard all of your belongings within it;
• you may buy each cover separately, or you may buy a combined building and contents insurance package – which may invariably be the first step to saving money on your home insurance costs;
• in statistics published by the Association of British Insurers (ABI) on the 9^th of February 2017, for example, the average of price of a combined policy had fallen by 2% during the previous 12 months, whilst the price of separate building insurance and contents insurance had increased by 5% and 3% respectively;

Check your policy

• you might have an eye on cutting costs, but it still pays to read your policy very carefully, so that you are certain what cover you are actually buying for your money;
• a story published in the Guardian newspaper on the 8^th of April 2017, highlights the differences you might find between the policies of one insurer compared to another – not to mention the cost of making the wrong choice;

Get advice

• this is one of the main reasons for seeking the advice of specialists in home insurance – such as ourselves here at GSI Insurance;
• with our expertise and experience, we may help you avoid the pitfalls of arranging unsuitable home insurance, match your needs and circumstances to the appropriate policies on the market, and still deliver highly competitive quotes that are likely to help you cut costs;

Contents insurance claims

• when choosing your contents insurance, you may have the option of cover that provides “replacement as new” (the replacement of lost or damaged items at today’s prices) or after the deduction of an amount for “wear and tear” (reflecting the depreciation of the claimed item);
• replacement as new policies naturally tend to be more expensive, so if you are looking to cut costs, a wear and tear policy may be appropriate;

No claims discounts

• like many other forms of general insurance, home insurance typically offers valuable no claims discounts on your next renewal if you have not made a claim in the previous 12 months;
• the discounts are frequently transferable, so if you are switching insurers, make sure to check that any current no claims discount is reflected in the quotation you are given;

Excesses

• home insurance policies invariably incorporate a compulsory excess – the value of which is likely to vary according to the type of claim you are making;
• in order to reduce the cost of your premiums, you might opt to take on a further voluntary excess – although remember that you need to contribute more in any claim you subsequently make.

There are encouraging signs that the cost of combined home insurance packages is falling. Even so, there remain a number of measures you may take to cut costs still further.