Top tips to reduce your home insurance costs
Every insurance need is different. After all, every homeowner is different, and their circumstances and needs can vary wildly. This can have an effect on home insurance costs.
According to the Money Supermarket experts, prices have risen nationwide for all homeowners and property ages, making higher costs unavoidable.
So, how to reduce home insurance?
There are ways to keep your premiums down, from common sense home insurance cover advice to more unusual tricks to help reduce liabilities. Here are some handy tips to keep your insurance costs low…
Buy A Combined Policy
Home insurance is a collection of different types of policies and requirements, but the two main components you need are buildings insurance and contents insurance policy, which cover the actual physical building and your valuables inside it, respectively.
Whilst you can buy both buildings and contents separately, even from different providers, many insurers offer a discount if you buy both from them which can work out cheaper.
According to the insurance price index, buying a combined policy could save you over £30 compared to buying the two policies separately. Some deals also include combining car insurance too.
Don’t Over Insure
There is a complex balancing act when it comes to home insurance, where you want to ensure your house and everything in it could be replaced in the case of a catastrophe. As a result, many people are paying more than they need to just in case.
The place where people get stuck the most is that they calculate the market value of their home when factoring in the cover they need, not the cost to rebuild it. As land is often more valuable than what is built on it, this could be reduced.
Don’t Be Fooled By Excess
Several insurance companies will reduce the premium on your home if you increase the excess, you will pay out when you claim, which can work out better right up until the moment you actually need to make a claim.
Make sure you can afford any insurance excess you choose and keep in mind any compulsory excess charges such as for subsidence.
Keep Your Home Secure
The more protected your home and contents are, the cheaper your home insurance will be. Simple steps such as more secure specified locks, installing a safe or even joining a Neighbourhood Watch scheme could reduce your costs in three ways.
The first is that you are less likely to make a claim and so won’t need to pay any excesses. The second is that your premiums will be lower because your provider will know you are less likely to claim.
Finally, you can also build up a no-claims bonus or no claims discount which means that every year you will be paying less for your insurance.
Think About Additional Cover
When you apply for insurance policies, especially combined ones, you will often be offered extra policy options for an additional cost, such as home emergency cover, cover for legal expense, expensive items or accidental damage cover.
If these are free that is fine. However, if you need to pay to add them, be aware that these can add up over time as might be free with an alternative policy so shop around.
Shop Around Regularly
Don’t just stick with the same provider year after year. Shop around for better deals when your policy is up for renewal. Often, new customers are offered lower rates than those staying with the same insurer.
Consider Increasing Your Home Security
Upgrading your home security can result in lower premiums. Installing burglar alarms, smoke detectors, and even smart home security systems can reduce the likelihood of claims, which insurers often reward with discounts.
Pay Annually Rather Than Monthly
If possible, pay your premium annually instead of monthly instalments. Many insurers charge interest on monthly payments, making the overall cost higher than paying in one lump sum for an annual premium.
Maintain a Good Credit Score
A good credit score can help lower your home insurance premiums. Insurers sometimes use credit scores to assess risk, so maintaining a good credit history can lead to lower rates.
Insurance as a Mortgage Requirement
Home insurance is often a requirement when securing a mortgage, as lenders want to protect their investment. The property serves as collateral for the loan, so if it were damaged or destroyed, the lender would need assurance that it can be rebuilt or repaired without financial loss.
Having adequate home insurance ensures that, in the event of a disaster, the property can be restored to its original value, safeguarding both the homeowner’s and lender’s interests. This makes home insurance not just a wise choice, but a necessary one for most mortgage agreements.
How we can help
Greenacre Financial Services offers expert guidance in navigating the complexities of both insurance, protection and mortgages. By providing tailored advice and personalised solutions, we help clients find the most suitable mortgage options while ensuring their homes are adequately protected with the right insurance provider.
We’ll reach out to you at renewal time to review your coverage and ensure you’re still getting the best possible rates and protection.
Whether you’re a first-time homebuyer needing insurance, or looking to remortgage, our experienced professionals work with different insurers and mortgage providers to secure competitive rates and comprehensive coverage, making the process smoother and more efficient.
Our commitment to understanding your unique needs ensures that you receive the best home insurance quotes and mortgage advice for your circumstances.
For more information about any of our services, or if you have any questions about how to reduce home insurance, get in touch or call us on 0203 3939 222.
