8 Easy Tips for Cheaper Home Insurance

No one likes paying for home insurance although protection does bring peice of mind. Having protection and the necessary cover required doesn't mean you have to break the budget.

Here are 8 simple tips for reducing the cost of home insurance:

1. Shop Around

By comparing prices from several insurance companies, you'll probably be able to reduce your premiums by a substantial amount. This may seem obvious, but research has shown that a surprisingly large proportion of people either just renew their current policy, or get only one or two quotes. Many insurance comparison web sites will automatically compare dozens of policies for you, making this one of the easiest ways to reduce your insurance bill.

2. Research Insurance quotes and Buy online

If you buy your policy online you can often get a discount of up to 20% on normal prices, because there are less administration costs involved and the savings can be passed on to you.

3. Combine your house and contents policies

Many insurers will give you a discount if you take out both types of home insurance with them, and this usually works out cheaper than getting the two kinds of policies from different companies. You may even be able to combine your vehicle cover as well for even more purchasing clout.

4. Pay upfront

Although most insurers let you pay your premium in monthly installments, many will charge interest for this. If you can afford to pay a full year's premium in advance, then this may work out cheaper in the long run.

5. Don't claim for small amounts

Making many small claims can increase your insurance costs, as your insurer may see you as a greater risk and increase your premiums. You will also lose any no claims discount your policy has. Of course, you're entitled to claim for anything your policy covers, but ask yourself if making a small claim is really worth the hassle and possible future costs.

6. Voluntary excess

This is related to the last point. Insurance policies feature something known as 'excess', which basically means that the policy won't pay out on claims below a certain value. On some policies, if you choose to raise your excess to a higher level, then your premiums will be lower.

7. Increase your home security

Beefing up your home security with better door locks, window locks, outdoor lighting, and alarm systems can all result in lower premiums. Ask your insurer what you could do to get extra discounts.

8. Reduce your cover

Many policies feature benefits that you might not need, such as cover for personal possessions while traveling, or 'free' legal advice. Look through your policy and see what parts of it you really need - by cutting your cover down to size you may be able to reduce your premium and insurance cover costs.

Originally submitted by: Simone Butler