Monthly Archives: March 2016

Home Insurance Tips to Help You Make Savings

There are many ways that you are able to save money on home insurance. One of the many home insurance tips for getting the best deals is to allow a specialist broker to search around on your behalf. You can then go through the key facts of each policy they find and compare to get the most suitable insurance policy for your needs.

Another of many great home insurance tips when wanting to save money on insurance is to offer to pay more out in excess on the policy. The excess is the amount the provider would ask you to pay towards an insurance claim before they will payout. For example if you have to make a claim for £250 of damage or loss and you were paying an excess of £100 the insurance company would then payout for the remainder which would be £150.

The more secure your home is the less chance of you being a victim of theft so the cheaper the insurance premiums might be. You could install a good quality alarm on the property; fix deadbolts on the doors and window alarms on the windows. Good high fencing around the property can also help towards keeping down the cost of the insurance. Installing such as fire alarms could also help to keep down the cost of insurance as with alarms fitted there would be less chance of fire destroying your home.

When taking out home insurance the premiums are worked out on how much you choose to insure. Therefore you do not want to take out insurance that is grossly over estimated. To get an accurate idea of how much to insure against you would have to go around your home and jot down the cost of items. Do not forget to look in cupboards, wardrobes and your loft and count all items however small as they all add up.

Home insurance can be taken out as home contents insurance and buildings insurance. While contents insurance protects your belongings in the home, buildings insurance would protect the shell of the home. Mortgage lenders will usually insist that you take out buildings insurance to cover the shell when they provide you with the mortgage. Often if you take out both forms of home insurance together you can make huge savings as opposed to searching around and taking out cover with different providers.

Look into whether your neighbourhood has a neighbourhood watch scheme. If it has then it can be worthwhile becoming a member. If not then you could look into starting such as scheme. If there is a scheme in place this can deter thieves and as you would be seen to be living in a safer neighbourhood this could help to keep the cost of the premiums down.

Finally another of the valuable home insurance tips to consider is to check the policy over with a fine tooth comb. There will be limits and exclusions in all home insurance offered by all providers. It is essential that you know what is and is not covered in your home insurance to avoid any nasty surprises if you should have to make a claim.

Using Home Insurance Tips to Cut Premium Costs

Because insurance in all of its forms involves a regular cost to the policyholder, it can often go down on the long list of household bills which can be more or less concerning depending on someone’s circumstances. If somebody were to get the best deal possible from the outset, cover for the home can essentially take care of itself up until the time comes to renew a deal. In effect, with a little homework and by following some basic home insurance tips, somebody could make sure that this basic cost is as low as possible.

Unfortunately a lack of basic understanding can actually see somebody end up with a policy which in part is actually more than they need. For example, that term home insurance itself generally prefers to two basic types of cover – buildings insurance and contents insurance. In reality not everyone needs both, as people who are renting a property, for example, may not need protection for the building, but simply for their contents, or their general belongings. Likewise, somebody who owns a building but rents it out may not actually need contents insurance, or only a low level of it.

As such a home insurance policy may be completely unnecessary for somebody who is renting, if it includes protection for the building. People who are buying a home and are applying for a mortgage may often find that they are offered a Home Insurance plan by the bank or building society which is supplying them with the lending. This is because the vast majority of mortgage providers require that the applicant has a form of buildings insurance in place.

While taking this offer may seem sensible and convenient, in reality what the lender is offering you may be poor value compared to other standalone policies offered by independent cover companies. Remember that you’re entitled to turn down the offer of insurance which is made buy a home loan provider, it is wrong to assume that you will be refused lending if you reject their form of insurance.

Other home insurance tips include taking particular care over what is and what is not covered on any potential policy. While it’s true that most deals protect against fire, flood, and vandalism, plus theft in the case of contents, flooding in particular may be more expensive as an option depending on where the house itself is. Certain flood risk areas in the UK mean that getting protection for these homes is more expensive or almost impossible.

If you are putting buildings cover in place, it can be worth bearing in mind that you may be putting yourself at risk if you are looking to improve the home yourself. For example, some insurance companies will not pay for damage which is caused by DIY improvements, such as a botched home attempt at an extension, for example. If you are keen to do a fair amount of work on the house yourself, ensure that this will be covered – many companies require that whoever is carrying out the work is a qualified tradesman.

When it comes to contents, it is safe bet that significantly improving your home security can bring down your premium. Remember that insurance is essentially an industry which bases its costs on risk. You can reduce the risk or chance that your home is broken into, you may be able to reduce your insurance premium. Fitting a burglar alarm, installing a certain type of lock on the doors and fitting security lights are all home insurance tips which can potentially cut the cost of contents insurance.

A Few Home Insurance Tips

Presuming to offer home insurance tips needs to be done with some caution, since every home and every homeowners needs and circumstances are, of course, quite different. Nevertheless, there are a few basic principles probably worth bearing in mind whether your search is for buildings insurance, contents cover, or both.

  • Price– many people might be tempted to go for the lowest price possible. Whilst low-cost home insurance is certainly available, the more important measure – even with such low-cost insurance – is the value for money it offers. This means getting the level of protection for the building itself and all the items that need to be covered for the most competitive price. This, in turn, requires a fine balance between overvaluation and paying too high a price for the premiums – over-insurance – and the probably greater peril of under-estimating the value of your property and its contents in order to pay less in premiums – under-insurance;
  • Set-limit cover– some insurers have taken the uncertainty out of this balancing act by offering set-limit cover on both buildings and contents insurance. High on the list of home insurance tips, therefore, might be the opportunity of avoiding the risks of over- or under-insurance by choosing the set-limit option. These competitively priced policies typically provide all the cover you need up to an agreed limit on either buildings or contents (for example, up to £1 million on the building and £60,000 on the contents, for example). If this is the chosen option, however, one of the most important home insurance tips is to be certain that rebuilding and contents replacement costs do not exceed the insured limits;
  • What’s covered? – if one of the more important home insurance tips is about value for money, then the question of good value is about the extent of cover offered. With respect to buildings insurance, for example, there are likely to be variations between policies in the range of risks – and potential catastrophes – covered. If the very worst does happen and the building becomes uninhabitable, it is worth checking how much compensation (if any) is available for renting alternative accommodation until your home has been properly reinstated or rebuilt.

The extent of cover is perhaps even more variable when it comes to contents cover. Is it an “all risks” policy, for example, that maintains cover even when your possessions or personal effects are out of the house itself whilst you are on your travels? Does the policy include cover for any sheds in your garden and the tools and equipment they might contain? Some policies even extend cover the garden plants themselves;

  • Students– it’s good to know that insurers have spared a thought or two for the particular needs and circumstances of students. With a computer and other electrical gadgets, or maybe an expensive musical instrument in their care, it is not so difficult to see how home insurance tips apply to students, too. The particular circumstances of student accommodation – very often in a house shared with others – however, mean that it is almost impossible to exercise very much control over just who might have access to the shared areas of accommodation. Contents insurance plans for students’ possessions and effects, therefore, is sometimes restricted to those kept in their own, lockable, bedroom or self-contained apartment.