Most people don’t have a clue about what they’re getting into when they take out a new home insurance policy. They usually skim read the print, but ultimately choose the package which seems most affordable to them. They also usually just agree with whatever their bank suggests as the best option, and leave it ticking over on an annual basis with very little thought as to whether their requirements of circumstances have changed.
This is quite simply a waste of money, but never fear, here are some great tips to point you in the right direction.
Lump sum payment
If you can afford it, making a lump sum payment is the cheapest way of paying for most types of insurance. A monthly payment plan can often seem more attractive, but usually they end up costing you a lot more in the long run. Insurers usually charge interest which could be up to 45% of your regular annual premium.
If your house and your car are insured by the same company you could make huge savings. Some insurers offer to bundle insurance packages together which could save you a fortune.
Install some CCTV or a high tech alarm system can cut the cost of home insurance. Some providers may even give discounts for taking extra measures such as better locks which use only half a key.
Get the best deal
Spend a few hours shopping around to see what you can get for your money, but ensure you’re being quoted for the same coverage from each provider. Once you’ve taken an insurance package, keep your eye out for rising premiums over time.
Look at all insurance costs
There are often lots of small print and smaller costs that make up an overall home insurance premium. These can usually include things like building insurance and contents insurance. Don’t pick a cheaper policy that does not offer the same cover to later discover should something awful happen.