Home insurance

Home insurance

Consider these following steps when purchasing your policy

Shop around

Compare quotes from different insurers. Contact insurers directly, speak to an insurance broker through the British Insurance Brokers' Association (BIBA), or use a price comparison website to compare premiums. Don’t just accept your current insurance provider’s renewal quote – look around for the best deal each time your policy is up for renewal.

Accurately calculate the value of your contents

Spend time working out exactly how much your possessions are worth. It’s very important to get this figure right. If you overestimate this value your premium will be higher than necessary. If you underestimate this figure you will not be adequately covered if you must make a claim.

Don’t over-insure

Your insurer may offer you additional cover, such as protection against accidental damage, on top of your basic policy – but your standard policy might cover everything you need so do not pay for any unnecessary extras.

Combine buildings and contents insurance

You do not have to buy buildings insurance and contents insurance from the same provider, but some companies will offer a discount if you take out two premiums together. It can work out cheaper to buy separate polices from different companies, so compare costs to see which option is best for you.

Secure your home

Many insurers offer discounts for homes fitted with security devices such as burglar and smoke alarms and high-quality window and door locks. Your insurance provider will tell you which devices they approve.

Choose to pay a higher excess

Your insurer may reduce the price of your premium if you agree to pay a higher excess, that is the first amount of any claim that you must pay.

Pay your premium in one go

You may qualify for a discount if you pay your premium in full at the start of your policy period rather than in monthly instalments.

Maintain your no claims discount

Insurers usually offer discounts to customers who haven’t claimed against their insurance for a certain period of time. Take preventative measures such as insulating your pipes and water tanks to prevent freezing in cold weather and installing proper security devices to avoid having to make a claim.

FAQs

Tracing a home insurance policy or other insurance policy?

If you have a home insurance policy, or any other type of insurance, but you do not know the name of the company that issued it, there is no central policy database you can check. But there are other options:

speak to your insurance broker or financial adviser who may be able to help you to trace your policy
check your bank account / credit card statements for evidence of payments to an insurer

If you have a home insurance policy, or any other type of insurance, and you know the name of the company you bought the policy from but cannot find the policy document:

Contact your insurer who should be able to trace your policy using your personal information and your postcode

I don’t have household insurance, but would like to insure my phone or my laptop for example. What is my best option?

Gadget insurance may be your best option. Gadget insurance provides cover for items such as mobile phones, laptops, tablets, etc. Most policies usually cover the cost of replacing the gadget, unauthorised calls and accidental damage.

If I don’t let my insurer know about changes could this affect my cover?

Yes, if you don’t let your insurer know about changes this could affect your cover. For example, if you have told your insurer that your roof is in good repair, they will base your premium on the known risk of storm damage happening to the average roof.

But if, in fact, your guttering is already falling off, or your tiles are coming loose, then there’s a greater than average risk of damage happening during a storm – something your insurer hasn’t covered against on your original premium.

As the full risks weren’t disclosed, you’re effectively insuring higher risks at a cheaper price, which could invalidate your policy and leave you without a pay out in the event of a claim.

Should I increase my excess to make my policy cheaper?

The golden rule of voluntary excess is to make sure you know what you can afford to pay it if you have to make a claim.

The more you agree to pay towards a claim, the less cost there would be for your insurer, so they may reduce your premium accordingly.

But be aware that setting an unreasonably high voluntary excess may save you a few pounds on your premium in the short term, but if ever you need to make a claim, you could find yourself with a large bill to settle before your insurer will pay out.