Cutting the risk

One of the best ways to reduce your home insurance premium is to cut the risk of the insurer having to pay out. This can be done in a number of ways:

• Security measures to reduce theft risk – Fit a burglar alarm, change locks, install time-switch lights, join a neighbourhood watch scheme, install security lighting, etc. NACASS standard alarms can get you up to a 7.5% discount.


• Reduce fire risk – Fit and maintain smoke alarms.


• Increase the standard policy excess – If you are willing to cover more of the cost of any claim then you will reduce your home insurance premium.


• No claims – The fewer the claims, the lower your premium. Also see which home insurance companies offer a no claims discount. This can save you up to 20% on your premiums.

For more money-saving ideas read the moneysupermarket.com top tips section.

Do your research

The best way to cut the cost of your home insurance is to get the best deal available for you. To do this, you will need to shop around. Using the price comparison tool at moneysupermarket.com will save you time, effort and money. Just fill out the form and in two minutes it will compare prices from more than 60 different home insurance companies to help you find the cheapest home insurance quote available.
This does not mean however, that you should simply accept the cheapest quote you find. The reputation of an insurance provider is also very important so you might wish to pay a bit more if an insurer is highly recommended by a friend or family member.
Another way to cut your home insurance premium might be to move house. A nationwide survey by the AA showed premiums could differ by 300% depending on where you live. Moving away from these postcode hotspots might be the best way to cut your premium.
Now you know how to get the right home insurance deal for you, the next step is to consider how to make a claim.

Making a claim

When it comes to making a claim you should notify the insurance company as quickly as possible. There is often a clause in your contract that makes it mandatory for you to contact the company as quickly as possible, though in the case of a theft, it is necessary to contact the police first.
Decide which policy to claim under and then contact your insurance provider. They should then send a claim form, which needs to be filled out with estimates for your repairs/replacements. If you have ‘new for old’ cover you can claim for the full cost of replacement items. If you have an indemnity policy you must deduct an amount to represent wear and tear.
For a major claim a company could send around their own loss adjustor to assess whether you are in compliance with the terms of the policy. This can potentially lead to the company refusing to pay out, which is why it is vital to read the small print and always make sure you give the company accurate information.

Exclusions

It is crucial to be aware of elements that might threaten your claim. These can include:

• Falsified information.


• Lack of maintenance – any repair work due to your negligibility is unlikely to be covered.


• Failure to install security systems.


• Failure to carry out repair work on previous claims.

Also bear in mind that it can sometimes make more sense to pay for relatively inexpensive repairs yourself than make claims on your insurance. This will allow you to build up your no claims bonus.