Insurance is a must, even if it is boring. Here, we look at home insurance and tell you how to get the best deal on a policy that covers your home's contents, buildings, or both.
People still think that they have to get Buildings Insurance through their mortgage company. This does NOT happen.
You can look anywhere you want and buy anything you want. The only thing you need is to have the insurance in place.
So that's one explanation. The other reason is that your home is your biggest single asset, and you need to cover it if you lose it, unless you can just sell it and buy a new one every time something bad happens to the one you have.
Even though Contents Insurance is not required, it is just as important. The contents of the average UK home are worth GBP25,000, which means that anyone who doesn't insure their belongings runs the risk of losing some or all of another large asset.
So, Home Insurance can be pricey, but not as much as the bad things it protects you from. But that doesn't mean you should pay any premium that's given to you. Instead, we think you should be able to get a fair price for any insurance you decide to buy.
Here are some ways to get and keep your insurance rates low, as well as some tips from the industry to help you.
- Join a local watch group (less common as a discount but can still sometimes get a 1 percent saving with some insurers)
- Use locks that have been approved (could achieve a 5 percent discount)
#! Install alarms and get a contract for alarm maintenance (fitting NACASS standard burglar alarms could get a 7.5 percent discount but remember they may require an annual check). At first glance, it may seem like the cost of all this better security is more than the savings on insurance, but this will pay off in the end.
- No promises (If you don't make a claim, you might get a discount, just like with car insurance. Some insurers offer discounts of up to 20%.
- Agree to raise the normal policy deductible (most policies will want a GBP50 excess but if you are willing to increase the discounts available are dependant on the amounts)
Since there are so many different factors, the only real way to find the best price is to look at as many providers as possible. Once you've done your research, contact the top two or three insurers directly to see if you can get the price even lower by talking to them directly about your options and how you can lower the risk to the insurance company. Don't be afraid to talk to the insurance company about lowering their prices. You've done your research, so it will be worth your time.
Lastly, here are our "Top Tips" for getting cheap home insurance and keeping it that way.
Try to combine your Buildings and Contents insurance if the discount is big enough to make both policies competitive with the same insurer.
Talk to your potential insurer about all the discounts they offer. Being a member of certain groups could get you an additional discount.
Tell your insurance company if the value of your belongings has gone down instead of up. This could lower the amount you have to pay.
Don't let valuable things be seen. Try to find a safe or cash box to buy.
Be careful with your house keys. Take them off any hooks that are close to doors or windows.
Keep expensive electronics out of sight. Turn off the standby lights and close the doors of the TV cabinet to hide the TV.
Get property pens to write down what you have. If your things are stolen and later found, the police will be able to get them back to you if you mark them with your postcode and house number.