Author: Sean Callery
The cost of insuring your home and its contents can vary considerably based on factors including where in the country you live, the materials used to build your home and the value of its contents. But there are many other factors providers take into account when pricing their policies, some of which you may be able to use to your advantage to pay less.
Here are seven tips to help you save on home and contents insurance:
1. Increase your excess
A home insurance excess is the amount you agree to pay to your insurance provider if you have a claim approved. Many providers give customers the option to choose how much of an excess they will pay, and you may be able to save on your premium by increasing your excess.
It’s important to note that if you do this you’ll face higher costs if you end up needing to make a claim.
2. Take advantage of a multi-policy discount
With some providers, if you buy more than one policy (e.g. home and contents cover, plus car insurance), you could get a discount on one or all of the policies, compared to the cost of buying the policies separately. This requires a degree of caution, however, as you need to make sure that buying the policies from the same provider makes sense overall. For example, it may still work out cheaper to pay full price for the policies with separate providers.
It’s also important to ensure that each policy is suitable for your situation. Avoid sacrificing your level of protection or adding unnecessary coverage just to obtain a relatively small discount.
3. Increase home security
When applying for a home and contents insurance quote, some providers will ask about the security features of your home, such as burglar alarms and security screens on windows. Enhancing your home’s security could lead to reduced premiums, as insurers may perceive your home as being at lower risk of a break-in, reducing the likelihood of you making a claim.
However, not all insurance providers offer discounts based on home security features. Therefore, check the potential savings before investing in potentially expensive security upgrades.
4. Shop around for a better deal
Another major factor determining the cost of your home and contents insurance policy is the provider you choose. When applying for coverage, consider getting quotes from multiple providers to compare costs. If it’s time to renew your policy, use this opportunity to explore other options that might offer better value for money. Canstar’s Home and Contents Insurance Star Ratings are designed to help consumers shop around based on an expert assessment of a wide range of policies. This could be a good place to start.
Be sure to pay close attention to the inclusions, exclusion, limits, as well as any other terms and conditions of the new policy before you switch. Be sure to ask any necessary questions, and to read over the policy documents carefully.
5. Pay your premiums annually
If it suits your budget, you could save money with some providers by paying your annual home and contents insurance bill in one lump sum rather than in monthly installments. However, be sure to check the provider’s policies regarding early cancellation if you have paid for a year’s worth of coverage upfront.
6. Avoid extras you don’t need
When buying insurance, focus on what you need.
When purchasing a policy, you may be offered additional features beyond the standard coverage, often for a higher premium. Common examples include coverage for the loss of hearing aids or glasses, and for accidental damage to mobile phones and laptops. Carefully consider whether these add-ons are worth the extra cost.
7. Review your policy regularly
If you’ve found a policy that offers the coverage you need and fits your budget, it’s still important to review it regularly to ensure it aligns with your current circumstances.
Notify your provider of any changes, as this could affect your premiums. For instance, moving homes, upgrading your home’s security, or recalculating the value of your home’s contents can impact your premium. However, not all changes will lead to a decrease in premiums.
If your provider informs you of a premium increase, it may be time to revisit step five.
About the reviewer of this page
This report was written by Canstar Content Producer, Caitlin Bingham. Caitlin is an experienced writer whose passion for creativity led her to study communication and journalism. She began her career freelancing as a content writer, before joining the Canstar team.
Enjoy reading this article?
You can like us on Facebook and get social, or sign up to receive more news like this straight to your inbox.
By subscribing you agree to the Canstar Privacy Policy
Share this article