How to find cheaper home insurance

Whether or not you’re obliged to take out a home insurance policy, you certainly aren’t obliged to pay over the odds for it

Couple at home, Berlin, Deutschland

Contents insurance is optional for tenants, whereas mortgage holders will often find that buildings insurance is a condition of their loan. But whether or not you’re obliged to take out a home insurance policy, you certainly aren’t obliged to pay over the odds for it.

With that in mind here are five top tips that could help you find cheaper home insurance.

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Step 1

Don’t overestimate your home’s rebuild cost

When you’re taking out buildings insurance or building & contents insurance you may be required to estimate your home’s rebuild cost, with the estimate you provide influencing the premium calculation for your insurance policy.

If you overestimate you could end up paying more for your insurance than you need to, while underestimating could see you out of pocket if your home ever has to be rebuilt, so it’s important that the figure you quote is as accurate as possible.

Fortunately the Royal Institution of Chartered Surveyors (RICS) has created a free online calculator (known as the BCIS Public Rebuild Calculator) that enables homeowners to estimate their home’s rebuild cost, so if you use that tool you should be able to provide a more accurate figure.

Step 2

Don’t underestimate the value of your contents

While many homeowners overestimate their home’s rebuild cost, when it comes to the value of the property’s contents many go the other way and underestimate what everything is worth.

Underestimating the value of your contents might result in a slightly lower premium, but it could end up costing you much, much more if you ever have to claim on your insurance.

Step 3

Join your local Neighbourhood Watch scheme

Believe it or not around a third of home insurance providers in the UK will offer policyholders a discount if they’re a member of a local Neighbourhood Watch scheme, with an average discount of around 5%.

Step 4

Consider installing a burglar alarm

Although it’s not a hard-and-fast rule, some home insurance companies will offer policyholders cheaper quotes if they have a burglar alarm installed by an industry-certified professional.

However, it is worth mentioning that some other insurance providers won’t lower their premiums, and with some the discount will be so small that it doesn’t offset the cost of installing the alarm system.

Step 5

Install locks on all ground floor windows

Installing locks on ground floor windows won’t necessarily result in cheaper insurance quotes, but it could mean more providers might be willing to insure your home because some insurers will refuse to insure a property that doesn’t have these locks fitted.

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