Home Insurance

The average cost of home insurance is £5.60(1) a week and yet still almost a quarter of households do not have contents insurance.

If you have a mortgage you must have buildings insurance but you do not necessarily have to get it from your mortgage company. You may be able to shop about to find a better deal.

Your contents are almost always likely to be more valuable than you think, often even double, so check your levels of cover each year.

 

Play with the variables

Play around with some of the variables to try and decrease your quote. This could take you 10 minutes but the extra time is worth it. We have done it and found that the savings can be HUGE!

  • No claims bonus – The longer you have gone without making a claim, the lower your premium. In a lot of cases, no claims of 5 years or above could lower your premium by 60 to 70%!(2) You will find your current no claims bonus on your insurance certificate. The NCD usually builds up in the name of the policyholder, so it's a good idea to take out home insurance in joint names
  • Excess – Raising your excess by a couple of hundred pounds can cut your premium by up to 20%(3). However, you will have to pay this amount at short notice if an accident happens so please make sure you can really afford it
  • Security – Don't forget to mention any alarm you have, this can lower your premium on average by about 7%(4), the same goes for being part of a Neighbourhood Watch scheme which can lower premiums by 5%(5)
  • Your job title – Choose different job titles that apply to you (but do not lie) and compare the prices. There can be big changes in the premium. If you are a housewife / househusband, make sure you put this as your job title rather than unemployed as it lowers your premium
  • Students – You might think it is cheaper to have your student insurance added to your parent's policy but often it is cheaper to have your own policy
 

Go Direct

Remember, there are some insurance providers who don't use or appear on comparison sites so make sure you check direct with a few to make sure that you are getting the very best rate outside of comparison providers

 

Make the most of your insurance

  • Making a claim is never at a convenient time

  • Unexpected excess payments can have a big impact on your wallet and could contribute to the stress of claiming

  • Excess Busters ease these problems by covering your excess and can save you money!

Excess Busters


Why we like it:

  • Allows you to cover your excess
  • Increasing your excess will likely lower your premium
  • Low cost and will save you money!
  • Available for multiple types of insurance in multiple combinations

Watch out:

  • Dated website

Need to know

  • Decide what is important to you. Adding on certain extras may cost more but could be worth doing. Accidental Damage may increase the price of your policy but it will mean that you have greater cover. Having greater Personal Possessions cover means that items like cameras, laptops and phones are covered when outside of the home. You also need to make sure that you have the right level of single item cover
  • Don't forget to check some of the more quirky extras. For example, would the hundreds of pounds worth of downloaded music be covered? If I had a power cut, would the contents of my freezer be replaced?
  • Remember, if your home is empty for 30 days then it could invalidate any claim!
 

The inside track

  • If you are buying a new home, you need to make sure that you have arranged buildings insurance from the day you exchange contracts
  • Some policies automatically increase your contents cover at Christmas or around a wedding to take into consideration the extra food and presents you may have in the house
  • Try to make a one-off payment each year and it could save 10%!(6) It can be convenient to spread your payments over monthly instalments, but it is almost always more expensive because firms charge an additional admin fee
  • Don't forget that there might be specialist insurers out there who offer you greater protection for your unique needs such as for thatched or listed properties or those at a greater risk of flood
 

https://www.abi.org.uk/News/News-releases/2015/01/Cost-of-home-insurance-falls-average-price-paid-for-buildings-cover-down-6-contents-insurance-down-5

http://www.confused.com/car-insurance/articles/car-insurance-buyers-guide-no-claims-bonus-explained

http://www.moneysupermarket.com/c/news/can-you-afford-your-excess/0013648/ 

http://www.moneysupermarket.com/home-insurance/money-saving-tips/ 

http://www.moneysupermarket.com/home-insurance/money-saving-tips/

http://www.telegraph.co.uk/finance/personalfinance/borrowing/mortgages/11212554/Moneysaving-mortgage-trick-pay-an-extra-150-per-month-now-save-30000.html

 
 
 

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