Home And Family

Home insurance can be expensive, but to do without it would be reckless indeed. In fact, most mortgage lenders will insist that you take out buildings insurance if you are to be approved for the loan. Thankfully, there are plenty of things that you can do to bring down the cost of your home insurance premium. Here are a few ideas to get you started.

Pay by direct debit

Usually, it is cheaper to pay for your insurance on an annual basis, rather than spreading the cost over the year. However, some firms will waive any extra costs for spreading the payments if you agree to pay by direct debit. If not, you may be able to save money by borrowing the money to pay your annual instalment cheaply, for example with a zero percent credit card, rather than paying in instalments.

Improve your security

If you take the right steps to secure your home against burglars, then you may be able to obtain cheaper home insurance. Things such as fitting a burglar alarm, joining a neighbourhood watch scheme, and upgrading the locks on your windows and doors can all lead to discounted insurance. In fact, in some high crime areas, you cannot obtain home contents insurance at all without having certain security features. However, if you fit an expensive alarm system, don’t expect it to pay for itself, as the reductions in home insurance that can be obtained with a monitored alarm system are usually far less than the cost of the system itself. Therefore, it is best to think of the savings that you make on your premium as a result of fitting an alarm system as an added bonus rather than the reason for fitting the alarm.

Don’t insure for the market value

Unless it is situated in a place where land is especially cheap, the chances are that the market value of your home will be considerably higher than the rebuilding cost, due to the cost of the land it is situated on. If your home should be extensively damaged, it is only the building itself that needs to be replaced or repaired. Therefore, you should only insure your home for the rebuilding cost rather than the market value, as this will lead to considerably cheaper premiums. For a cheaper deal on your home insurance, go to the Legal & General website.