Getting home insurance is a wise move for any homeowner, whether you are buying your very first property or have lived in the same home for many years. Home insurance provides you with peace of mind that you are covered in the event of a disaster at your homes such as a fire or a flood, and a policy that includes home contents insurance will cover your belongings if they are damaged or stolen. However, home insurance is another big monthly expense, so if you are looking to protect your home but save money at the same time, the good news is that there are several things that you can do to bring the cost down while still enjoying the same benefits. Check out our top money-saving tips for finding the cheapest home insurance.
When you purchase a home, it’s likely that your bank or mortgage provider will offer you an insurance policy. However, this is not usually the cheapest option. You don’t have to purchase your home insurance from your bank; you can buy it from any provider regardless of where you get your mortgage from. It’s certainly worth taking the time to run a price comparison and shop around to find the cheapest home insurance quotes.
Carefully Consider Extras
Like many other types of insurance policies, home insurance policies tend to come with a range of optional extras that you can choose to add alongside the coverage home insurance usually provides. In some cases, optional extras might actually be essential, such as protecting against flooding if your home is in a high-risk area and unlikely to be covered by a general home insurance policy in the event of a flood.
However, not all of these extras will be useful to you, so consider which ones you really need. You could reduce the cost by opting for a basic policy and cutting out extras such as accidental damage cover.
Increase Your Excess
Your excess refers to the amount that you will pay out-of-pocket in the event of a claim. Typically, the higher your excess, the lower your insurance premiums will be. Consider how much you could comfortably afford to pay out if you needed to make a claim on your home insurance policy and set your excess to as high as possible. Of course, make sure that it will be affordable to you – but the higher you can afford to go the better, as this will reduce the overall cost of the insurance.
Paying for your home insurance monthly can be a convenient way to manage the payment, but over time it will be more expensive. This is because you will be charged interest on making monthly payments. On the other hand, this additional fee will not be charged if you pay for your home insurance policy annually upfront, so it’s worth making the payment all in one go wherever possible.
Build Up Your No Claims Discount
Much like car insurance, your home insurance will get cheaper if you do not make any claims for a long period of time. Building up your no claims discount over time usually allows you to earn a discount on your premiums, so think twice before you make a claim. The good news is that unlike other types of insurance like car insurance, you don’t need to tell your insurer if there is any damage to your home. So, when it comes to minor repairs, it may be cheaper to pay for these yourself and protect your no claims discount.
Keep Your Home Secured
Suitably securing your home will reduce your risk of damage or theft and help you avoid making an insurance claim and subsequently see your premiums reduce over time. It goes without saying that your home should have fire and smoke alarms installed in order to ensure that you are alerted quickly in the event of a fire before any serious damage occurs. In addition, installing a good security system at your home including security lights, CCTV and suitable locks at any external entrances will deter thieves from entering your home.
Keep Your Policy Up to Date
Finally, once you have a home insurance policy, it’s important to ensure that it is kept up to date. Any home improvements, expensive purchases that you make, starting a business from home or a change in personal details or the number of people living in your home should be reported to your insurer. If you don’t update your insurance policy, you are running the risk of being underinsured.
Home insurance can be a large expense for homeowners, but it’s usually a necessary one. Thankfully with these strategies, you can drive the cost of protecting your home down.