Homeowners are no strangers to the effects of the cost-of-living crisis. It all adds up – food, petrol, energy bills, mortgage repayments, and so many other essentials.
Families up and down the country are tightening their belts and having to think outside the box to make ends meet.
It’s become a necessity for many bill payers to make solid plans over how money is spent and reassess exactly what’s a priority and what isn’t.
And home insurance is no different. As a homeowner, we know you don’t want to have to pay more for the vital protection of your home than is necessary. So, we’ve come up with a few practical ways you can keep the cost of your premium down.
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Choose carefully
Remember you don’t have to buy insurance with your mortgage provider or bank – take the time to choose the right option for you.
You may also be able to save money by combining your buildings and contents cover in one policy. Don’t buy extra cover options unless you think you might need them.
But obviously, if you’ve got kids charging through the house, or you’re a regular DIYer, accidental damage cover might be worth it.
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Provide the correct information
Whether you’re calculating the property rebuild cost, working out the value of your belongings or telling your provider what you do for work, it’s important to get it right.
If you significantly overestimate things, you might end up paying more than you have to. And if you under-insured, you might not get a full payout for an accepted claim.
If your home’s built with brick or stone walls and tile or slate roofs, you can calculate the property rebuild cost accurately using the BCIS Rebuild calculator for homes.
If your home is made of any other materials, it was built before 1850 or it’s a listed building, you’ll need to ask a chartered surveyor to calculate an accurate rebuild cost for you every few years.
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Choose the cheapest way to pay
Paying annually usually works out cheaper in the long run. And, if you can, it’s worth considering whether to increase your voluntary excess – although it’s worth being aware that you would pay more if you did have to make a claim that was then accepted.
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Ensure you are insuring the right things
If you have a standalone gadget insurance policy that covers theft or damage, don’t double up by putting your phone (or other gadget) on your home insurance policy as well.
And always try to claim on your gadget insurance policy before your home insurance policy, so it won’t affect your no claims bonus.
Equally, if you’re renewing your policy with the same provider, don’t insure things you’ve sold or thrown away during the year, especially if they’re expensive or high risk items like laptops, mobile phones, bikes or jewellery.
If you’ve got adult children who are living in halls at university, you may be able to insure their belongings under your own contents insurance policy, rather than buying a separate student insurance policy. However, it’s worth weighing up the risk of your own premium going up if they need to make a claim.
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Be security aware
A professionally installed burglar alarm (NSI, NACOSS, SSAIB or BSIA) with a monitored service can help to scare off thieves and, dependent on your insurer, may even help to decrease your premium. Just remember to set it when you leave and change the code regularly.
It’s also worth thinking about putting in a gravel driveway and path, so neighbours can hear any potential thieves approaching.
Bear in mind, you should get quality locks that conform to British Standard BS3621. If you’re not sure how to tell, check the metal lock faceplate on the edge of the door to look for a kitemark and BS3621 printed on the plate.
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Know when to claim or not to claim
Only report claims when it’s necessary and when you know you’re covered for it – it’s important to always read your policy terms before making a claim. That’s because your claims data gets stored on a centralised database that insurers use to calculate the risk of your things being damaged, stolen or lost.
And if you’re ever unsure of what insurance to get, read the information on what is and isn’t included carefully first. Whilst it’s great to be able to make a saving, it’s important to check you know what cover level you have plus any exclusions or excesses, to make sure that it’s right for you.
David Joyson is the chief customer officer at Home insurance specialist Homeprotect
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