Executive Summary about 5 Tips for Cheap Home Insurance by Simon M

Home insurance is a general term for two different insurance products. Buildings insurance to protect your property’s construction and home contents insurance to protect your moveable household objects and valuables.

The areas and level of protection offered vary from policy to policy along with the price.

TIP 1: Cut the risk and cut the premium

All insurance protects against the risk of financial loss. So to cut the cost, cut the risk to the insurance company and you’ll be rewarded with a lower premium. o Fit locks to all windows and level 5 (BS3621) mortise deadlocks locks to the doors. Most insurance companies will give you up to 10% off your contents insurance if you have these kind of locks fitted.

• Increased policy excess. You will usually have to pay the first £50 of any claim, but if you’re willing to pay more, your premium will fall.
• Neighbourhood watch. Some insurers offer discounts if you live in a neighbourhood watch area; however this is becoming less common.
• No claims bonus. Just like your car insurance; a record of no previous claims will reduce your premium substantially. So if you’re a lower risk this will be reflected in your premiums. o Occasionally applying to your existing insurer as a new customer can reduce your premiums. Before you carry out any security improvements to your home, always check with your home insurance company first.

TIP 2: Only pay for the home insurance you need

Buildings insurance covers the re-build cost of your property not its market value. The re-build value of your home can usually be found on your mortgage agreement, or property deeds. The Building Cost Information Service (BCIS) of the Royal Institution of Chartered Surveyors (RICS) produces a range of detailed guidance on the cost of rebuilding houses and flats together with a re-building cost calculator.

Home contents insurance covers almost everything else you would take with you if you moved house. Remember to value items such as CD’s, videos and clothing as their collective cost is often under insured.

TIP 3: Consider separate buildings & contents insurance

If you need both buildings and contents insurance, get quotes for separate policies for maximum potential savings. Most insurers do provide them as separate policies and just because one is cheap for buildings cover doesn’t mean they are equally competitive to insure the contents. Find the cheapest providers for each component and consider buying each from different insurers.

TIP 4: Shop around for home insurance

Firstly, don’t simply opt for the home insurance supplied by your mortgage lender. When shopping for insurance you basically have three options; go direct to the insurer, browse the web or use a broker. The best insurance websites compare dozens of brokers and home insurance companies in minutes.

TIP 5: Haggle & Save

Like every other product, insurance has a margin of profit built into it which can be negotiated down if you’re armed with the right information. Not every insurer will buckle and concede an additional discount but if you don’t ask you won’t know.

• Take the cheapest quote and contact your existing insurer first asking them to beat it.
• If after all that the insurer won’t cut the premium, ask them to throw in some extra cover to sweeten the deal or move on to the next home insurance company.