How much will it cost?
The cost of household insurance can vary enormously – an insurance broker who knows the market will be able to select the best policy for you depending on your circumstances. Here are some of the factors that will influence the premium you pay:-
- The area you live in. Insurers use postcodes to determine the risk of an area in terms of crime and flooding risk for example
- The age of the home you live in
- Type of home you live in, especially if it is timber framed, has a thatched or flat roof, if it is listed or situated in a conservation area
- Policy coverage – Not all policies are the same and cover and therefore cost will vary
How can the cost be reduced?
- Consider paying the premium upfront if possible, as paying in instalments may incur interest rate charges
- Considering a conversation with your provider about making your home flood resilient as this will reduce the likelihood and severity of a claim
- Consider taking advice about the effect of removing trees on your property over 10m – this may reduce your subsidence risk but could introduce other problems.
- Shop around for the right cover that you need – an insurance broker can help with this and advise on your needs and requirements.
- It may be possible for you to make savings on some areas of cover that are not needed. For example, cover for student belongings away from the home.
- Policy excess – This is the amount you have to pay up front in the event of a claim. If you agree to pay a higher excess in the event of a claim your premium will be lower.
- Security – If your home is protected by an approved alarm and is well secured by approved door and window locks insurers may give a discounted premium.
- Neighbourhood Watch – If your home is in a neighbourhood watch area insurers may give a discounted premium
- No claims – If you have not suffered any claims in the last few years you may usually qualify for a discounted premium
- Combined covers – Most insurers will offer a discount if you insure both buildings and contents with them.
- Indemnity only contents policies – Most policies are on a new for old basis where the insurer either pays the full cost of repairing damaged items, or pays to replace them with new items if they are damaged beyond repair or stolen, except for items such as clothes. Indemnity policies will deduct an amount for wear, tear and depreciation. These policies offer savings but are not generally recommended as you may be much worse off in the event of a large claim
- Sum insured or bedroom rated – Often subject to a maximum sum insured a bedroom rated policy is rated on the number of bedrooms whereas with a sum insured policy it is rated on the sum insured you specify. It is not clear cut which will offer you the best value so it is worthwhile seeking quotes on each