Home insurance offers you and your family financial security in the event of unfortunate incidents such as theft or fire.
However, that doesn't mean you have to pay a fortune to get the best cover. In this guide, we’ll help you find ways to get cheap home insurance and save money on your policy.
When it comes to buying home insurance, it's beneficial to shop around for the best deal. Prices and coverage will often vary between insurers based on the type of home insurance you need. Before you start comparing quotes online, work out what kind of cover you're looking for and how much you're willing to pay.
This will give you a better starting point when you start to search and compare quotes online.
If you're purchasing a property, your mortgage provider may offer you a home insurance policy. Remember, you are not obliged to take out a policy with your mortgage and it may not provide the best or cheapest cover.
Unfortunately, it no longer pays to be loyal. In fact, insurers often reward new customers with the best deals to encourage them to take out a policy. To avoid paying more for your home insurance, make a note of your renewal date in your diary or set a reminder on your phone a couple of weeks before you're due to renew.
This gives you enough time to start shopping around and comparing policies, rather than making a rushed decision when the date creeps up on you. Switching can also help you take advantage of an exclusive new customer deal.
Did you know you can also get cashback on top of your home insurance policy to make it even cheaper? A quick and easy way to make sure you’re getting the best home insurance deal is to compare your options through Quidco Compare. You could also earn £28 cashback when you purchase a policy.
There are two ways you can choose to pay for your home insurance policy: monthly or annually. If you can afford to pay for your policy upfront in one annual payment, it will work out cheaper than paying in monthly instalments. Monthly payments will cost more, as most insurers add interest on top of each monthly payment.
If you can’t afford to pay for your policy in one go, consider taking out a zero-interest purchase credit card and spreading the cost interest-free over the duration of your policy.
Home insurance can be divided into two main policies:
You can choose to purchase these separately, but many insurers offer a combined policy, which often works out cheaper. It's always worth running quotes separately and combined to check for the best deal.
If you choose to purchase each policy separately, some insurers offer a discount if you choose to buy both policies with them, which could also help reduce the cost.
Your insurance excess is the amount you'll have to pay towards any claims you make on your policy. Increasing or reducing your voluntary excess is always an option when you run a quote - but which is better when it comes to getting a cheap home insurance quote?
Increasing your voluntary excess lowers your premium, but you'll have to pay out more if you make a claim. However, reducing your excess may increase the price of your overall policy, but you won't have to pay as much when you submit a claim.
It's always worth running quotes with a range of excess figures and assessing how much you can afford.
A simple way to get cheap home insurance is to ensure your home is safe and secure. This will help prevent break-ins and will help insurers see that you're less of a risk.
Some simple ways you can increase the security in and around your home include:
These suggestions can help keep your home safer and reduce the chances of you needing to make a claim. This will also help you build your no claims bonus, making your policy cheaper when you renew.
Shopping around and comparing policies can also work in your favour if you're willing to haggle. Do your research beforehand and find 2-3 quotes. Call or live chat with your existing provider or a competitor insurer and show them your rival quotes. Ask if they will price match or even better, beat the quote. It can't hurt!
While we've discussed safety measures against theft, you can also protect your home against damage. Easy ways to do this include:
When you purchase home insurance, you want to make sure you choose enough cover to fully insure your house and goods. Otherwise, insurers may reject your claim or not pay out as much as you require.
While it can be tempting to purchase extras on your policy to ensure you are protected, it can actually cost you more long-term.
Try running quotes with and without optional extras to see how much the following bolt-ons will cost:
Make sure you check the T&Cs of each policy, as different insurers vary on definitions and cover for each add-on. For example, one insurer may class dropping your phone in water as accidental damage, whereas another may only include things like a broken screen or only cover manufacturer faults.
To make sure you have the right buildings and contents cover, it also helps to calculate these two things:
If you're struggling with either, a quick search online will help you find calculators to add up these costs correctly. Plus, make sure you read the terms and conditions before you commit to a policy.
As we mentioned earlier, making claims may damage your no-claims bonus, so it's best to avoid this if you can. If the problem is cheap enough to fix yourself e.g. a stain on your carpet, why not give it a go before contacting your insurers?
Even if you need to call out a professional, it's definitely worth weighing up the cost of paying the bill yourself versus what effect it could have on the cost of your home insurance.
Yes, cheap home insurance is great. However, the price may not always be the only factor to consider. As well as looking at the price of your quote, look at things like the insurer customer service reviews to see which ones score the best. When you submit a quote, you can see each insurer's Defaqto rating.
This is an independent financial research company, which gives each product on the market a rating of 1 to 5 stars based on the quality and comprehensiveness of the features and benefits offered. Have a look to see how your home insurance provider stacks up against others on the market before committing to purchasing.
It will also cost you more long-term if you purchase a cheap policy that doesn't actually offer the protection you need. You may spend more time and effort battling with your insurers or have to foot the repairs bill and replace valuable belongings out of your own pocket.
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