Home insurance is a general term for two insurance products. Buildings insurance to protect your property and building contents insurance to protect the contents of objects in the home furniture and valuables.
The problem is that not all home insurance policies are equal making it difficult to compare like with like. The areas and the level of protection offered varies from policy to policy, along with the price. So having a definite idea of what you need to insure and how much it will help to minimize the total time and money spent to buy it.
TIP 1: Cut the risk and reduce the premium
All insurance to protect against the risk of financial loss. So to reduce cost, reduce the risk of the insurance company and you will be rewarded with a lower premium. Here is a brief summary of the most effective.
o Call your home insurance company or plan local Neighborhood Watch and send you a list of steps to follow to make your home safer.
o Put locks on all windows and level 5 (BS3621) mortise locks on doors. Most insurance companies will give up to 10% discount on your home insurance if you have this type of locks.
o You can also have an alarm installed by an alarm acknowledged, that your insurance company may recommend, and again this can give up to 10% of your policy. Note that these are expensive alarms which require an annual review.
o Increase in excess of the policy. Generally, you will pay the first £ 50 of any claim, but if you’re willing to pay more, your premium will fall.
or neighbors. Some insurers offer discounts if you live in a neighborhood watch, however this is becoming less common.
or no claims bonus. Like car insurance, a record of any previous claim your premium will be substantially reduced. If you need to make a claim, consider whether it may be cheaper to pay for the loss of himself to avoid an increase in premiums.
or age. Statistically, the older you are, the lower the probability of a claim. So if you’re a lower risk of this is reflected in their premiums. Some companies offer additional benefits to those over 50 years as Saga.
or special precautions. State the special precautions you have done for your valuables, such as a safe home.
or lifestyle. If you have a dog, a teetotaler and does not smoke, be sure to declare these factors are used by some insurers to reduce premiums.
From time to time or to apply to your insurance company existing and new customers can reduce your premiums. Many insurers offer discounts to new customers who will not be repeated when it comes to renew.
o If you apply online, usually receive a discount of around 5%.
Before carrying out safety improvements to your home, always check with your insurance company first home. It is confirmed that the improvements will have the greatest impact of the court costs.
TIP 2: Only pay for home insurance you need
Calculate an exact number of buildings and the value of the contents of insurance can be difficult, so a lot of homeowners are under insured or paying for coverage levels do not really need.
Buildings insurance covers the cost of re-construction of your property, not its market value. The value of re-building your home is the cost of reconstruction in the event it is destroyed by fire or collapse, for example. The value of re-building your house usually can be found in your mortgage contract, or titles. The building cost information service (BCIS) of the Royal Institution of Chartered Surveyors (RICS) produces a range of detailed guidelines on the cost of rebuilding houses and apartments, along with a calculator reconstruction costs.
Alternatively, you can opt for a policy that has an unlimited or high standard buildings insured so you do not have to worry about ensuring the correct amount.
Home insurance covers content about everything else you would take with you if you moved house. Make a list of the rooms in your home and write all the elements contained in each with its value. Once you’ve done this, the total of the individual amounts to see what contents insurance protection you need. Remember to value items such as CDs, videos and clothing as their collective cost is often underinsured. Whether your closet is full of jeans or designer labels, make sure to include the cost of replacing them.
TIP 3: Consider separate buildings and contents insurance
If you need both buildings and contents insurance, get quotes for separate policies for maximum potential savings. Most insurers provide as separate policies and just because one is cheap for buildings cover does not mean they are equally competitive to secure content. Find the best deals for each component suppliers and consider buying each from different insurers.
TIP 4: Shop around for home insurance
As with any retail, reveal the greatest savings by shopping around.
First, not limited to opt for home insurance provided by the mortgage lender. That can be convenient when you’re busy sorting your mortgage but are often expensive and most likely would not have been compared with other policies in the market.
When shopping for insurance you basically have three choices: go directly to the insurer, surf the Internet or using an intermediary. If you have the time and commitment you can do all three, but the fastest and most effective is to enter and use the Internet’s reach.
The best insurance websites compare dozens of brokers and home insurance companies in minutes. You just fill out a form for a list of premiums displayed on the screen of the major insurers and brokers. However, if you have unusual or highly specific requirements of the final premium may increase when confirmed direct with your chosen insurance company.
Tip 5: Haggle and save
Like all other products, insurance has a profit margin built in so you can negotiate if you’re armed with the right information. Not all sure that the buckle and give an additional discount, but if I ask you not know.
o First, find the cheapest quote after using internet comparison sites and calling a few runners.
o Take the cheapest quote and contact your existing insurance company telling them to overcome. If it does not move into contact with the second cheapest insurer and do the same.
o If after all the insurance premium will not cut, ask them to add some extra cover to sweeten the deal, or go to the insurance company next home.