Home is where the heart is and protecting it and our families are most peoples’ top priorities, but seeing as few of us have hundreds of thousands of Pounds sitting in the bank ready to be utilised if something happens to a home and its treasured possessions, we need a little help. For most people, this comes in the form of home insurance
In this article we will show you how you can easily keep the costs of your home insurance to a minimum but if you need further advice or are looking for a quote on renewing your home insurance visit Legal & General. It is the country’s best provider of mortgage-related insurance.
Insurers base insurance premiums on risk. The greater risk your home poses to them, i.e. the greater the possibility they will need to pay out on a claim, the higher your insurance premium. Therefore it pays to reduce your risk as much as possible. One way of doing this is to install a burglar alarm. Not only will you deter burglars but you can also slice a good percentage of your home insurance premium.
Joining your local neighbourhood watch is another quick fire way to lower you insurance costs. Dead locks, double glazier and security lights also can shave a few Pounds off your premium.
Share the risk
The excess is the amount you pay towards a claim. Your contribution can be relatively small, or you can voluntarily choose to increase the excess. Why would you do this? By sharing the risk with your insurer, you will be rewarded with a lower premium. If you rarely claim and when you do it’s only for high-ticket value items, this is one of the best ways to greatly lower your annual insurance costs. However, you should only do this if you really can afford to do so and if you don’t claim often.
No claims benefit
Along the same vein, choose an insurer that offers a great no-claims discount that increases over time. As the name suggests, if you don’t claim you get a benefit and this benefit comes in the form of a discount. After several years of claim-free living you can get up to 70% off your insurance premium. However, like the previous point, this only works if you don’t claim very often. You should only make claims for expensive items or repair jobs.
Finally, the easiest way to chop 4-10% off your premium is to pay on an annual basis, rather than via a monthly direct debit or bill. Insurers factor in some interest into monthly payments as they are more convenient to customers but less convenient to insurers. So avoid this by paying up-front annually
In the event your wooden floor is affected by a water leak, read our "Wood and Water" case-study and discover how insurers regard your efforts to limit the damage.