Moneygate

Ten tips to save money on household insurance

You can save money on homeowners insurance if you know how - discounts from your insurance company are available for a variety of reasons.

Here are a few handy tips from IFA www. moneygate.co.uk to help you save money:

Get your sums right. One of the main factors affecting your content insurance bill, is how much your possessions are worth, so it’s worth spending time getting this right. If you over insure, you’ll pay too much and if you under-insure, you may not get the full payout in the event of a claim.

To work out your cover, go round the house and add up the value of our contents. Don’t miss small items like jewellery, phones and MP3 players. Include garden plants and furniture if relevant.Shop around. Check with several different insurance companies to get rate quotes. Ask for recommendations – do your friends or family members like their insurance company?

Click a bargain. Check the internet for deals, where you can find some of the cheapest policies – buying online can knock a third off your bill. Raise your excess. This is the amount of money you have to pay toward a loss before your insurance kicks in. By raising the amount you are prepared to pay towards a loss, you can make savings on your policy – just make sure you can afford the excess you agree on if something should happen.

Improve security. Items such as deadbolt locks, burglar alarms and smoke detectors often bring discounts on insurance bills. Some insurance companies also offer significant discounts if you install a sophisticated home-security system. If you're thinking about buying such a system, check with your insurer to see which systems they recommend and which will earn you a discount.

Neighbours…. Joining the neighbourhood watch scheme may also help lower your bills.

Winning combinations. Insuring your whole home – contents AND the building – with one insurer can lower your bills, as well as being convenient if you have to claim on both policies (in the event of a fire for example).   However it may not be cheaper if your area is much higher risk for buildings than contents cover, or vice versa (for example if you live in an area that’s at high risk of flooding, but which has few burglaries.)

Try senior discounts. Insurance companies have found that retired people stay at home more and spot fires sooner than working people. Older people also have more time for maintaining their homes so if you're at least 55 years old and retired, you might qualify for a discount.

Check your policy annually. You want your policy to reflect the value of your home and belongings. If you review your policy every year, you will be able to make the necessary adjustments. If, for example, you just sold a valuable item, you won't need the same amount of coverage. But if you added a garage, you'll need to increase your coverage.  

Pay up front. If you can, pay for your contents insurance upfront. Paying monthly is often treated as a loan, so you’ll pay interest. Annabel Green from national IFA Moneygate said: “All too often householders let their insurance policies carry over into the next year without looking for the best deals.  You can save hundreds of pounds on your policies every year by hunting for the best deal.”

For independent advice go to www.moneygate.co.uk