IN the current economic climate anything you can do to reduce costs is welcome and Home Insurance is one that many people will target as an area to make savings.
Let me put that another way, many people are willing to risk the insurance of the most valuable asset they own to save a few quid. Sounds like madness but everything is being squeezed right now and insurance is no different.
ItÂs important to understand a couple of things: 1: In your efforts to save money on Home Insurance, do not reduce the cover you need and leave yourself financially exposed Â if your rebuild value is Â£100k, do not insure for Â£80k thinking the saving of Â£10 in insurance is worth it. If you have a total loss claim youÂll be out of pocket by Â£20k Â ouch! 2: You can save money if you do a few simple common sense things.
The first thing you can do is sign up to or find out if there is a neighbourhood watch scheme for your street. If there is then declare that on your insurance. If there isnÂt one, then why not start one? Discounts can be applied by many insurers for being part of a neighbourhood watch scheme.
Smoke alarms are pretty much a base requirement for Home Insurance. These cost around Â£5 each from any good DIY store and can make a difference to what your insurance costs. Preventing a fire or catching it early can make a massive difference to a claim so it is easy to understand how this makes a difference.
Making claims will generally increase your policy price so think carefully before you decide to do this. If you spill red wine on a Â£500 carpet and decide to claim then make sure it is the right thing to do. If you add your compulsory and voluntary excess up what will you be paying out of your pocket? In some cases it could be hundreds of pounds and that means the insurance claim could be for only a small amount but it will be recorded and that will affect your next Home Insurance policy price. It may be better to get the carpet professionally cleaned and not get so drunk next timeÂ
These are just three of the easy ways to do the things that insurers like to read on applications for Home Insurance. One thing I can assure you is if you do not live in a neighbourhood watch area, do not have smoke alarms and have made previous claims, then you will pay more for your Home Insurance.
Just make sure you donÂt save money by cutting corners and insuring for the wrong amount, or that could end up costing you a lot more in the long run. Â£10 saved today is not smart if it costs you Â£20k in six months time; as Homer Simpson would say Â Doh!