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5 Tips For Cheaper Home Insurance |
By:
UK Insurance Index |
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Home insurance is a basic term for two different insurance
products. Buildings insurance to protect your property's
structure and home contents insurance to cover your moveable
household objects and valuables.
Unfortunately not all home insurance policies are created equal
making it difficult to compare like with like. The level of
protection offered can vary from policy to policy along with the
price. So having a good idea of what you need to insure and for
how much will reduce the overall time and money spent buying it.
TIP 1: Less risk equals a lower premium
All insurance plans protect against the risk of financial loss.
So to keep the cost to a minimum, cut the risk to the insurance
company and you'll be rewarded with a lower premium. Some of the
most effective measures are:
* Speak with your home insurance company or local neighbourhood
watch scheme and they will send you a list of steps to take to
make your house more secure.
* Fit locks to all windows and level 5 (BS3621) mortise
deadlocks locks to the doors. Most insurance companies will give
you up to 10% off your contents insurance if you have these
locks fitted.
* Have an alarm fitted by a recognised alarm fitter, which your
insurance company can recommend, and again this can give you up
to 10% off your premiums. Please bear in mind that these are
expensive alarms which require annual check-ups.
* Higher policy excess. You will usually have to pay the first
£50 of any claim, but if you're willing to pay more, you can cut
your premium further.
* Neighbourhood watch. Some insurers offer discounts if you live
in a neighbourhood watch area; however this is becoming less
common.
* No claims bonus. Like your car insurance; a record of no
previous claims will reduce your premiums. If you need to make a
claim, consider whether it may be cheaper to pay for the loss
yourself to avoid an increase in premiums.
* Your age. Statistics show that the older you are, the less
likely you are to make a claim. So if you're a lower risk this
will be reflected in your premiums. Some insurers offer extra
benefits to those over 50.
* Special precautions. Declare any special security provisions
you've made for your valuables such as a home safe.
* Your lifestyle. If you have a dog, are teetotal and don't
smoke, be sure to declare this as such factors are used by some
insurers to reduce premiums.
* Applying to your existing insurer as a new customer can reduce
your premiums. Many insurers offer discounts to new customers
which won't be repeated when you come to renew your policy.
* If you apply online you will normally get a discount of around
5%.
Before carrying out any security improvements to your home,
always check with your insurance company first. They will
confirm which improvements will have the biggest cost cutting
impact.
TIP 2: Don't pay for home insurance you won't need
Working out an accurate figure for your buildings and contents
insurance value can be awkward, which is the main reason why a
lot of homeowners are either under insured or paying for levels
of cover they don't really need.
Buildings insurance covers the re-build cost of your property
not its market value. The re-build value of your home is the
cost of re-building it in the event that it is destroyed by fire
or subsidence for example. The re-build value of your home can
usually be found on your mortgage agreement, or property deeds.
The Building Cost Information Service (BCIS) of the Royal
Institution of Chartered Surveyors (RICS) produces detailed
guidance on the cost of rebuilding houses and flats together
with a re-building cost calculator.
Alternatively, you can opt for a policy that has an unlimited or
high standard buildings sum insured so you don't have to be
concerned about insuring the right amount.
Home contents insurance covers almost everything else you would
take with you if you moved house. Make out a list of the rooms
in your house and write down all the items contained in each
with the total value. Then total the individual amounts to see
what overall contents insurance you need. Don't forget to value
items such as CD's, videos and clothing as their collective cost
is often under insured.
TIP 3: Look at separate policies
If you need both buildings and contents insurance, get quotes
for separate policies for maximum potential savings. Most
insurers do provide them as separate policies but, just because
one is cheap for buildings cover, doesn't mean they are equally
competitive to insure the contents. Find the cheapest providers
for each component and consider buying each from different
insurers.
TIP 4: Shop around for maximum savings
Like any other retail product, the biggest savings are revealed
by shopping around.
Firstly, don't simply opt for the home insurance supplied by
your mortgage lender. They can be convenient when your busy
sorting your mortgage but they're often over priced and chances
are they won't have been compared against other policies on the
market.
When shopping for insurance you basically have three options; go
direct to the insurer, browse the web or use a broker. If you
have the time and commitment you can do all three, but the
fastest and most effective route is to log on and use the reach
of the internet.
The best insurance websites compare dozens of brokers and home
insurance companies in minutes. You only have to fill in one
form to get a list of premiums displayed on your screen from
major insurers and brokers. However, if you have unusual or very
specific requirements the final premium may increase when
confirmed direct with your chosen insurer.
TIP 5: Ask for cheaper home insurance
Like every other product, insurance has a margin of profit built
into it which can be negotiated down if you're armed with the
right information. Not every insurer will buckle and concede an
additional discount but if you don't ask you won't know.
* First, get the cheapest quote after using internet comparison
sites and phoning a few brokers.
* Armed with the cheapest quote, contact your existing insurer
first asking them to beat it. If they won't budge contact the
second cheapest insurer and do the same.
* If after all that the insurer won't cut the premium, ask them
to throw in some extra cover to sweeten the deal or move on to
the next home insurance company on your list.
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Article Source: http://www.PopularArticles.com/article1130.html |
Article: 5 Tips for Cheaper Home Insurance
Author: UK Insurance Index
Total Views: 43
Word Count: 980
Category:
Home /
Home and Garden
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