The price of home insurance premiums seems almost volatile at times. Having reached an historic low in 2017, they have now risen by 4% in the last year, according to research cited in a story published in the recently, making the cost of premiums 29% higher than they were just three years ago.
According to the figures published in a Which? report on the 11th of September the 29% increase was seen for combined buildings and contents policies. Buildings only home insurance policies have increased by an average 11% annually, while the corresponding increase in home contents insurance policies has been an average of 6%.
The spike has been caused in some part as a result of the current pandemic, which has seen more people staying at home and a rise in claims for accidental damage.
Home insurance is one of those safeguards which any prudent household is almost certain to arrange – for the very good reasons we have set out elsewhere.
If home insurance remains such a necessary safeguard yet the cost of premiums has risen to the extent described, how can you make savings in what you need to pay?
Although the average price of home insurance premiums has increased, it remains a highly competitive, major sector of the insurance market. More than ever, therefore, it pays to shop around.
As part of that shopping around, you might want to look no further than ourselves here at UKinsuranceNET, where our sole aim is to find you the most cost-effective and suitable deal.
Paying only for what you need
We can also help in ensuring that you arrange only the cover you need and do not end up paying for extraneous elements of cover in which you have no interest. Home insurance policies are many and varied, with some offering a range of extras and additions which might not be universally required – but for which you need to pay when they are included as standard features of the policy.
We can help you identify those policies which provide only the cover you need.
Under this heading, you should also regularly review your cover needs – these may change.
When prices are going up, it might be tempting to look for ways of staggering your payment for home insurance – by opting for payment by a monthly instalment, for example.
That might prove a false economy. Home insurance – in common with other types of general insurance – is annual cover, payable in advance. When you pay monthly, you are effectively buying your annual insurance cover on credit – credit for which you end up paying. If you can afford to do so, therefore, always pay for your home insurance in a single sum when it falls due at the beginning of your annual policy.
Insurance is all about risk, of course, and you owe your insurer a duty to mitigate the risk of loss or damage arising under the terms of your home insurance. Those reasonable precautions are largely a matter of common-sense.
You might impress any insurer over and above those common-sense standards, however, by investing in additional security measures – such as upgrading the locks on external doors and windows or by installing a burglar alarm or home security system. Measures such as these may stand you in good stead when it comes to the insurer determining the premiums you need to pay.
You will find it time well spent to value the home contents you want to insure. Overestimate their value and you end up paying more than you might need; but underestimate that value and you may not be adequately covered in the event of a claim.
Be prepared to conduct a detailed, room by room inventory of the entire contents of your home.
Your home insurance policy invariably incorporates excesses – the first part of any claim for which you remain personally responsible. Those excesses may be for different amounts, depending on the type of claim you are making. In the case of a claim for subsidence, for example, the excess may be £1,000 or more, while a simple claim for damage to an item of your home’s contents may be only £50.
In any event, you may be able to reduce the cost of your annual home insurance premium by agreeing to increase the amount of excess you pay.
No claims discount
The Association of British Insurers (ABI) draws attention to the fact that most insurers offer a discount on your upcoming renewal of home insurance if the past year – or years – have been claims-free.
The more you can do to avoid making such claims, therefore, the better your chances of building up a significant no claims discount. Once again, preventative measures may prove more than worthwhile, so, consider upgrading your home security or taking steps to lag and insulate water tanks and pipes to prevent burst pipes during freezing weather.
Call us today!
Finally, did you know that 75% of customers could get a cheaper quote over the phone?* This is because we can assess your needs and help tailor your cover to offer you the most appropriate and cost-effective solution for you. Call now on 01325 346328.
*75% of all customers receiving an online quote in May 2019 could have obtained a cheaper quote over the phone, based on the information they provided.