Home Insurance - Lowering the risk & cutting the cost

Lowering the risk & cutting the cost

There are ways to drastically reduce your annual home insurance premium, which include measures taken to lessen the risk of your property receiving damage - the lower the risk of the insurer having to pay out; the lower the premium.

Reduce theft risk with enhanced security measures such as:

• Burglar alarm
• Changing the locks (double locks are always advisable)
• Time-switch & security lighting installed
• Joining a neighbourhood watch scheme
• Fitting and maintaining smoke alarms

Policy excess

Money saving ideas can additionally include the voluntary increase of your policy excess.  On a standard policy, if you are prepared to cover a higher cost yourself of any claim made by increasing the amount of your excess, then you will in turn, reduce your annual premium.

No claims discount

By not claiming on your policy, you can build up your no claims bonus.  The fewer claims you make, the less risk you appear to the insurer and you can effectively save up to 20% on your home insurance premiums.

Location, location, location

If you have more of a choice as to the region you’re going to live in, you can cut down on the risk and premium of your policy by avoiding high crime areas. According to a survey by an independent body, taken from home insurance enquiries made by over 1 million people; the top UK theft hotpots (in no particular order) are:

• Manchester (Firswood, Wythenshawe, Northenden
• London (Blackheath, Hammersmith, Finsbury Park, Chiswick, Gunnersbury, Turnham Green, Battersea, Upper Holloway, Southwark, Beckenham, Forrest Hill, Honour Oak, Enfield, Brixton)
• Leeds (Roundhay, Austhorpe, Apperley Bridge)
• Nottinghamshire (Bestwood Village, Bulwell, Old Basford,
• Buckinghamshire (Gerrards Cross, Horn Hill)
• Bristol (Bishopstone)

Moving house may seem like a drastic way to lessen your insurance but a study conducted by the AA showed that annual premiums could vary by as much as 300%, thanks to your location.  So escaping crime hotspots may initially seem more expensive but could save you money, and indeed heartache, in the long run.