3 Ways To Save Money On Home Insurance
Several factors affect how much home insurance you pay, including the coverage details, the size of your house, and even your location. However, reports show the median average UK home insurance is about £127.70 annually. While insurance offers many protective benefits, you can feel it eat into your finances when you’re short on money.
But the last thing you want to do is cancel your policy entirely and put your home at risk. Instead, use the following tips to lower your insurance bill while locking in the needed coverage.
1. Bundle policies for easier savings
Instead of buying just homeowner insurance, consider bundle policies. Bundling insurance means buying different types of insurance policies from the same provider. Thankfully, most insurance providers offer more than just one policy. So, if your current insurance provider does not, you’re better off finding another. Ideally, you want a provider with different policies covering various aspects of your life and home, including auto or car insurance, health, family, and life insurance (in addition to homeowner insurance). That will prevent you from purchasing different policies from different insurance companies, which is always very expensive. It’s easier to save money when you buy or combine several policies from one company.
2. Find ways to improve the value of your home
Another effective way to lower your insurance costs is to improve your home, especially in areas that matter. How does this work? Well, it follows a simple insurance principle - the more risks your home is exposed to, the more you can expect to pay in insurance. For instance, if your home lacks good security (secure doors, windows, and protective fence), you have a higher risk of burglary or theft. Your insurance cost will likely be higher to cover the potential risk.
So, find ways to improve your home’s value. Start by booking an online house valuation test to see your current value. Next, install (or fix) your roof, update electrical wiring, and improve the plumbing system. Finally, enhance general security by installing CCTV cameras and an alarm system and enhancing your doors and windows. Yes, these upgrades cost money, but they will lower your insurance. Even better, they’ll improve your home’s resale value if you plan to sell.
3. Stick with the same insurance provider
Experts advise ‘shopping around’ for options before settling on the right insurance provider, but stick with them once you’ve found one. The longer you stay with your insurer, the more discounts and other loyalty programs you can enjoy. Different insurers have different reduction policies and rates to reward loyalty. For example, some companies reduce their premiums by at least 5 or 10% for customers who have stuck with them for over 3 years.
And, regarding discounts, find out from your provider if specific perks are available, depending on your unique situation. For example, some retired homeowners may have special discounts or deductions they can enjoy. Speak with your provider for options if you’re unsure of what potential perks you qualify for.