Truth be told; as much as one intends to insure his home from all the possible calamities, most people tend to choose the most affordable insurance policies, without wasting too much time asking what they exactly cover.
I wonder how many people in the UK just buy home insurance without first getting various quotes from as many insurers as possible. I know many end up complaining on the kind of insurance they have while others just do not get the best out there and others end up paying over the odds.
I’d like to share with you on some of the top tips to use when shopping for home insurance, so that you can make an informed decision that you won’t regret about in a few years’ time.
- When insuring you home, also insure its contents. The insurer wants to do business and this gives you a chance to negotiate for a cheaper home insurance.
- Do not buy fancy home insurance like accidental home insurance as this would increase the premium quite significantly.
- Buy an annual home insurance policy as it does not have an admin fee. Paying a certain amount for your specific coverage every month is no doubt the best option, as it also allows you to budget more accurately.
- Always pay a bigger voluntary excess as it decreases the premium cost. Every home insurance cover comes with a compulsory excess. Compulsory excess is the fee that you pay when you make a claim. A voluntary excess on the other hand is the money that you pay on top of the compulsory excess.
- Make sure your home is secure and is not vulnerable to theft. A burglar alarm will lower the cost significantly. Consider joining a neighborhood watch as it reduces the theft chances and therefore prompting the insurer to reduce your premium. Make sure to ask someone you trust, perhaps a friend or a relative, to keep an eye on your home while you are away. Insurers want to know how secure your home is and whether it is situated in a high crime area, if you can prove them that your home is very unlikely to get robbed, then you will pay a way lower premium than you would if you lived in a dangerous area.
- Build up a no-claim discount that guarantees a 50% reduction in the premium if you do not make claims for over five years.
- Make sure your home is safe from fire. One can have smoke alarms fitted in the house as a prevention measure. By doing so, the insurer is convinced of no claims hence a reduction in your cover.
- Most home insurance claims in the UK are as a result of burst up pipes mainly in the winter season. It’s advisable one insulates the pipes during the winter. Also have someone watch your house if you are going away for a long time during the winter.
- If your house is at risk of flooding, protect it from the floods.
The essential action here is to protect your house from harm and the insurer will reward your efforts by giving you a cheaper home insurance.