Home insurance is one outgoing many people overlook thinking it is expensive and unnecessary – but when disaster strikes, those without wish they had bothered to get it.
It does not have to cost a fortune either, and there are ways to minimise the cost.
Those who are renting may think they do not need to bother with home insurance, but this could not be further from the truth.
For people living in listed buildings or homes with unusual features, it can seem tricky to get the right cover, but it is possible.
So follow these handy tricks and tips to save money on everything from building to contents insurance.
Your cover will be dramatically cheaper if your insurer sees you as less of a risk, therefore it pays to improve home security.
Most insurers have a minimum level of security before they accept you as a customer, such as deadlocks on external doors or key locks on windows, but adding to this could make your quote cheaper.
Installing a burglar alarm could get you a discount from some insurers, and using a five-lever mortise deadlock (one that conforms to British Standard 3621) on your doors will also help you save money in the long run.
Contents insurance is relevant for everyone, but buildings cover is only for freeholders. If you need both, combined cover is usually cheaper, but make sure your provider does not have separate buildings and contents excesses. A claim affecting both parts of your policy, such as a fire or flood, might see you having your excess deducted twice.
Don’t make the mistake of overpaying for your home insurance by incorrectly calculating the value of your building and contents.
When setting the value of the building itself, you need to give the rebuild value (the cost of rebuilding the property from scratch, and not the market value, which is higher. For guidance on the rebuild value of your building, try using the Association of British Insurers’ calculator or a commissioned survey’s valuation.
On the other hand, do not underestimate your contents. Failing to insure the true value of all of your contents will leave you out of pocket if you need to make a claim, so do your research on what it would cost to replace items with new equivalent goods.
Paying more on your excess could see you rewarded with lower premiums, but if you set the amount too high, it might make claiming either pointless or too expensive.
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