Tips To Save On Your Home Insurance
Home insurance isn’t a luxury, in the majority of cases it’s a necessity if there is a mortgage on the property. In fact, most mortgage lenders if not all won’t provide a loan unless you can provide proof of coverage. If you are one of the unlucky ones who live in an area prone to flooding or subsidence you more than likely be paying a higher premium than the person not living in a flood plain.
Even more importantly, you may not enjoy the same benefits as the person living in the are free from flooding or subsidence as companies may either exclude those benefits on the policy or apply a high excess to those sections.
The good news is that although you may not be able to avoid (and shouldn’t I might add) purchasing home insurance, there are ways that you can minimize the cost, save money and enjoy all the benefits on your home insurance.
Firstly, always shop around when you receive your renewal notice. As an insurance broker we have more experience in this than most as we have access to in excess of 15 insurance companies. Shopping around is the easiest way to save money and will also give you an opportunity to increase your cover. As we are brokers, we can be competitive in the majority of cases. While one insurance company we deal with might offer a high premium, there will be another insurer offering a lower premium.
Premium is not everything though. Make sure you have a policy that caters for your needs, i.e. if you have a ride on lawnmower in the premises, some companies may not offer cover (or offer restricted cover), you will need to find an insurer that will give you the best cover for the most affordable premium to you possible.
So there is that dreaded balance you will need to get right and the only way you can you will do that is by speaking to brokers that know the market.
By having a security alarm on your property, you can lower your annual premium by around 5% – 10%. Standard alarms (not monitored) will carry the lower discount, however if you have an alarm that is installed to EN50131 standard, installed by an approved installer & monitored by a central station you will need to the official certificate of instillation in order to obtain the higher discount.
There are pros and cons to having a security alarm on the policy. On the pro side, you have a reduced premium, however on the cons side if you have a break in and the alarm isn’t set, then the insurance company may apply the condition outlined in the policy booklet, therefore voiding the claim.
We would recommend having a security alarm installed not only for insurance cost saving purposes, but for the increased security for your home safeguarding your prized possessions.
A common feature in many homes nowadays, but they can be overlooked or not working in older properties. By having them installed, you will have a complied with the criteria set down by 99% of insurers and give you a safe mind knowing that should a fire start, you will be alerted. Remember alarms don’t just lower insurance premiums, they can save lives.
Many insurance companies give a discount to their customers if they or family members have insurance contracts with them. By obtaining quotes from the same insurer that holds another insurance policy of yours, you could save on two annual policy premiums.
Make Regular Policy Reviews
People should always review and update their policies according to your needs. For example you might treat yourself to a new watch or necklace. That particular item may not be covered on your existing policy and should something happen to them and you want to make a claim, you’ll find out that you won’t be covered, unless you instruct the insurer to make the alteration to the policy.
This is easily avoided by taking stock of any changes to your home or car and any items that you’ve recently acquired that are of significant value and aren’t so easily replaced. Once you have taken stock, it is a good idea to call your insurance company or broker and update your insurance policy.