Reducing premiums
There are 4 parts to home insurance cover that you should consider for your home, these are as follows:
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Buildings insurance which covers the buildings and fixtures and fittings e.g. bathroom suite etc [guide]
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Contents insurance which covers your possessions within your home. You should ensure that the limits on this part of the policy meet your needs including any high risk items [guide]
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Personal possessions cover provides cover for items that you take outside of your home. Many policies allow items up to a certain amount to be covered but items over that need to be specified
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Legal protection provides cover for legal costs should you need to pusue your rights as a home owner
Levels of cover
There are three levels of cover that are generally on offer. These are:
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Accidental damage new for old - this covers your property for all of the normal risks such as fire, flood and theft as well as any damage that is done by accident to your property or contents e.g. spilling paint on carpet. Any items that can't be fixed will be replaced with brand new items
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New for old - this will replace any insured items (if covered) with new. Often a limited level of accidental damage cover is provided e.g. TVs, DVD players and computers
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Indemnity cover - this is now thankfully rarely sold now as all this provides is the estimated value at the time of loss in the event of an insured event. e.g. if you TV was 5 years old and cost £700 you may only get back £25 for it i.e. the second hand value of it. We suggest you might want to avoid this kind of policy as the level of cover could be considered as inferior.
How to save money
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Shop around - each insurer will provide a different premium because they view the risk differently.
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Security - most insurers will offer a discount for good security e.g. locks and alarms.
Buy online
Buy your home insurance online - many insurers offer a discount if you buy online. This will mean that by buying online you will get a better price than if you phone them.
