Ways to manage your home insurance premium

As the cost of living increases, some people may be tempted to save money by reducing their insurance cover, buying the cheapest home insurance policy or cancelling their home insurance policy altogether. After all, you might think that if you haven’t made a claim, it’s money that can be in your pocket instead of an insurer’s…

Ultimately though, your home is likely to be your biggest asset as well as a home to you and your family. It’s therefore vital that it is protected by a good insurance policy and there are clever way to reduce the premium. Read our top ten tips to find out more.

1. Consider your security

Having the right security in place can influence home insurance premiums. This can be around safes, alarms, cameras and locks as well as smart technology. All of these lower the risk for insurers and will give them more confidence to provide their best quotations. Read our home insurance guide to security discounts for more information on this.

2. Review your cover

Consider upgrading your policy to a ‘mid net worth’ policy. A mid net worth policy doesn’t always cost more than a standard policy. They are designed to protect higher value contents and will have higher single article limits and inner limits for things like alternative accommodation, finding a leak, art and jewellery. The policies are usually “All Risks” which means that there’s wider cover for more eventualities. All in all, it may not be a cheaper policy, but it may be better value. To find out more, read our article: What is a mid net worth policy?

3. Jewellery and watch-wearing habits

The most expensive thing to insure £ for £ is jewellery and watches. We often speak to new or prospective clients who have all their jewellery insured on a worldwide basis, all the time. This is often inappropriate and gives rise to higher premiums. If you don’t wear all of your jewellery all of the time, speak with your broker about the benefits of opting for a floating limit. Your premium may also be lower if you install a safe and choose to limit the amount of jewellery that is kept out of it.

4. Do you have any optional extras?

Whilst we wouldn’t recommend cutting out Legal Expenses cover, you may wish to review other optional extras.

5. Manage your cash flow

When it comes to paying your premium, rather than releasing all your capital in one lump, consider spreading the cost of your insurance over ten instalments. We charge a competitive rate for this service and adhere to fair pricing guidelines.

6. Shop around

Rates change, insurers change and underwriting strategies change, so take the time to shop around. For many clients, this is the main reason to use a broker like Howden. We take the strain of finding suitable insurance away.

7. Claims – think twice

Think twice before you make a claim this year – particularly if it’s low value. As the UK home insurance market shifts to what is known as a hard market, we’re finding an increasing number of clients seeing higher premiums or being refused insurance.

8. Choose a higher voluntary excess

A policy excess is the amount you have to pay if you make a claim. Excesses are applied to a policy as a way of you accepting a small responsibility for the risk yourself. A higher voluntary excess may give you a lower premium. This is usually via an insurer discount, of a set percentage off the premium. 

9. Protect your excess

For a very small premium, our clients can choose to ‘protect’ their excess, so that in the event of a claim, they receive the full amount back. The excess protection policy will even work if they have a voluntary excess on top of any compulsory excess. 

10. Use a broker

Homeowners might think that by cutting out a broker they’ll benefit from cheaper insurance – however, there are many benefits to using an experienced insurance broker like Howden. By using our extensive market knowledge, leverage and relationships, we negotiate with insurers to get our clients a good and fair price.

To speak to us about your home insurance, call 020 8256 4908 or email: privateclients@howdeninsurance.co.uk