Buying buildings and contents insurance is an important part of homeownership, but it is undeniably another added expense included with the cost of owning a home. While having the proper insurance is essential for most of us, it can be costly depending on the amount of cover and the insurance company. Fortunately, there are ways that you can lower your home insurance cover premium. Here are some ways to make sure you are getting the most for your money:
The most obvious, yes - but surprisingly few people do! Many people believe that loyalty to the same insurer year after year pays dividends but it rarely does and in this competitive world there is usually some other company which will offer a better deal - at least for your first year (after which you can always move on again of course!). The first step you should take to reduce your insurance premium is to use a quote comparison website that will quickly compare rates from many insurance companies. You may want to start searching a month before your renewal date - this is the earliest that most insurers will give you a guaranteed price and there have been suggestions that some of them actually increase their quotes by a few percentage points as you get closer to the day on which you have no choice but to buy a policy, on the grounds that the time you have left for shopping around is fast running out. Insurers can be cunning rascals sometimes. When you find a lower price you can always pick up the phone and ask your current insurer to match it; quite a few of them will if the alternative is to lose a customer.
Combine and Buy Insurance Online
Many insurance companies offer discounts to those who purchased their policies online. Take advantage of these savings and use the company’s website to purchase your policy. Additionally, companies will typically offer you a discount if you combine your policies and use one insurer for both buildings and contents cover.
You may also lower your premiums if you agree to pay a higher voluntary excess on a claim if you should need to make one. However, try not to make your voluntary excess too high because if you do, in fact, need to make a claim, you want to make sure that you are able to afford the amount.
Insurance companies look favourably on security systems. Ensure that your home is equipped with proper lighting such as those that operate on time switches, burglar alarms and secure window and door locks. Updating your fire alarms and extinguishers can also lead to a lower premium.
Join Neighbourhood Watch
Statistics show that you can lower your home insurance premium by up to five percent by becoming part of an existing neighbourhood watch or organizing a new group to monitor your community. Talk with others in your neighbourhood and ask about existing patrols, telephone emergency alert systems and notifications to increase your chance of lowering your premium.
Build a No Claims Discount
If you have been claim free for a certain number of years, your insurance company may be willing to offer you a no claims discount. If you are unsure if this is available to you, the insurance company is just a phone call away. Typically, most insurance companies offer the discount if you have not made a home insurance claim for at least five years. This is something to consider if you are considering switching insurers because these discounts can be quite substantial, depending on the company.
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