Cheap home insurance is possible, even though the cost of cover seems to be going through the roof.
Home buildings insurance is at the highest ever level – at around an average £150 according to the latest figures.
At these rates, shaving a few pounds off the cost offers a welcome respite from the spiralling cost of living.
The first place to save is how the premium is paid. Settling the bill in one payment delivers the cheapest home insurance, but many householders pay monthly.
This can add an extra 10 per cent or so to the bill with some insurers, but several charge nothing or much less than that.
So, the first moneysaving insurance tip is to check out the credit price if paying monthly.
Understanding excesses is the next factor to investigate.
- A compulsory excess is the bill the insurance company will charge against the first claim made in any year a policy runs.
- A voluntary excess is the money the person taking out the policy offers on top of any compulsory excess in the event of the first claim.
A common misconception is the excess is paid against every claim.
Increasing the excess should reduce the premium, so ask the insurer for a comparison for different levels, remember the total excess paid on the first claim is the two figures added together.
Next, examine the policy features and benefits. Many policies will include several as standard cover that are included in the price.
Some are add-ons that cost extra, although not every insurer has the same standard cover, so some features could cost more with one firm than another.
Any householder paying for extra cover should check that the feature is something they will use – if not, strike it out to cut the overall cost.
Lastly, before making a claim, weigh up the likely costs. Not only will the insurer claw back the excess, but a claim will put up the next premium.
If the damage costs £350 to put right, but the excess comes to £300, consider paying the extra to make sure you keep paying for cheap home insurance.