The cost of your home insurance premiums is likely to increase over the next 12 months, warns the Money Saving Expert in an August update to its website.
In a world of rising prices, we are all probably on the lookout for cheaper home insurance, but the real trick is to find the cover that suits your very individual needs and requirements with a particular product on the market and one that is offered at a competitive price.
The quest, therefore, is likely to continue to be for god value for money, rather than a rock-bottom price:
Here are some tips and suggestions for achieving that goal:
Review your home insurance cover
- getting the best value for money is likely to involve a regular review of your current home insurance policy, to see whether it may be bettered by another deal elsewhere;
- since it is often difficult to compare like with like in matching your needs to the appropriate policy, the Citizens’ Advice Bureau suggests that the services of a specialist insurance broker may help identify appropriate policies;
Building and contents insurance
- building insurance and contents insurance provide the bedrock of any home insurance policy;
- they may be bought separately, but if you buy a combined building and contents policy in one, the result is typically (but not always) cheaper;
- it is important to be as accurate as possible when deciding the total sums insured;
- it may be a common error, for example, to overestimate the costs of rebuilding your home in the event of a major disaster, so you over-insure and therefore end up paying more than you need in premiums;
- on the other hand, it may be easy to underestimate the replacement value of the whole contents of your home, with the result that you underinsure them – and stand to make a considerable financial loss if you subsequently need to make a claim, which does not cover full replacement;
Strip out the unnecessary
- many home insurance policies may include elements of cover which are either irrelevant to your particular circumstances or which you decide you can do without – by stripping out superfluous aspects of cover or by choosing policies which do not include them as standard is a way of reducing your costs;
Mitigating the risk of loss or damage
- the more you do to mitigate the risk of loss and damage – and, therefore, the need to make a claim – the better your chances of earning reductions in the cost of premiums;
- measures such as smoke alarms and detectors, burglar alarms, and upgraded locks on windows and doors may all help to reduce the risks to your home;
How to pay
- although it might seem more convenient and an easier way to spread payments by opting for the monthly plan typically offered by insurers, this is effectively a credit arrangement, on which you need to pay the interest – for cheaper home insurance, therefore, aim to pay the full amount in a single payment at the commencement of annual cover.
Any universal increase in home insurance premiums is likely to give you still further incentive to cut costs wherever possible – fortunately, there are a number of ways of achieving such savings.