Don't be tempted by home insurance offers

If you are looking for insurance, don't be swayed by attractive discounts - you may find you can still get a better deal from an insurer that doesn't have a special offer.

A number of providers are currently advertising introductory offers for new home insurance customers. These include Sainsbury's Bank, which is offering 12 months of cover for the price of nine; Direct Line is advertising a third off plus an extra 10% reduction if you buy online; and Nationwide is offering a 20% discount for two years if you take out buildings and contents insurance together.

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At Moneysupermarket we decided to put the special offers from Sainsbury's Bank, Direct Line and Nationwide to the test. We took a typical three-bed semi in Cardiff, Birmingham and Manchester and compared the annual premiums offered by Sainsbury's, Direct Line and Nationwide with like-for-like deals from other home insurance companies that appear on our comparison tool. In each scenario we included accidental damage cover while assuming each homeowner had a five years no claims discount, a £100 excess, a house alarm and window locks to maximise the premium savings. The results were significant.

First we took a home in Cardiff with a market value of £170,000 and a rebuild value of £67,000. In this case the cheapest of the three providers mentioned earlier was Direct Line with a quote of £131.25 a year - significantly less expensive than the Sainsbury's Bank offer at £281.95 a year. However, the cheapest deal through our finder was actually offered by broker Homequote Direct at just £104.25. In actual fact, the Direct Line deal didn't even make our top ten - with the Post Office, Budget, Bradford & Bingley and Yesinsurance.co.uk all offering significant savings.

This wasn't a one-off occurrence either - in fact this was the closest that these special offers came to breaking our top ten.

In Birmingham, Homequote Direct again topped our table on a house with a market value of £149,000 and a rebuild value of £69,000. Its annual premium was just £107.81 - saving you more than £40 a year compared to the cheapest deal from the 'big three' at £150.15 from Direct Line.

Our third comparison was a three-bed semi in Manchester and the premium savings are even more sizeable. The cheapest of the 'big three' on a house with a market value of £120,000 and a rebuild value of £69,000 was again Direct Line at £224.70 a year. However, this is nearly £70 a year more expensive than the cheapest deal through our home insurance comparison tool - in this case Post Office home insurance at £157.05.

This research was obviously limited and we are not saying that Sainsbury's Bank, Direct Line or Nationwide will never be competitive. However, our results illustrate the importance of shopping around. Insurance premiums vary hugely depending on where you live and the type of property you live in so you need to compare a number of providers to ensure you are getting the best deal for your circumstances. And as anyone who has used our comparison service will know, shopping around doesn't have to be an arduous task. We compare more than 60 home insurance providers and brokers to find you the most competitive deal.

Other ways to save on your home insurance

Remarkably, some 4.7million homeowners across the UK have no home contents insurance which could leave them seriously out of pocket should they fall victim to a break-in or some severe weather.

While shopping around can significantly cut the cost of protecting your home, there are other steps you can take to minimise your insurance premiums:

Value your buildings insurance correctly 

Many fall into the trap of assuming that the rebuild cost of their home should be the same as its market value. However, with a rebuild you're only paying for raw materials and labour costs - not land, location or an inflated property market. So get a clear estimate of the rebuilding cost of your home so you know how much to insure it for - for example, a semi-detached house built over 742sq ft with a garage and worth £180,000 in the North East of England would cost a mere £79,700 to rebuild. Click here for guidance on how to estimate the rebuild value of your home.

Opt for a higher excess 

 Increasing the voluntary excess will bring your overall premium down.

Value your home contents correctly 

There is no point in paying for more cover than you need. However, it is equally important not to under estimate the value of your belongings. If you undervalue the contents of your home, your insurer may refuse a claim, or only pay a proportion of it.

Enhance security 

 House alarms, CCTV cameras, security lighting, time-switch lights and double glazing can all earn premium discounts if you inform your insurer that they are in place.

Neighbourhood watch 

Consider setting up a neighbourhood watch scheme if there isn't already one in place as this can also help reduce your annual premium.
It's also helpful to build up a no claims discount - but to do this you'll have to avoid making a claim. Here are some additional seasonal tips that may be useful:

Subsidence 

Insurance companies pay out an estimated £5m a week for subsidence claims. One common cause are trees because of the water they suck up from the ground. If there are any large trees within five metres of your home it is worth speaking to a tree surgeon as it may be worth chopping them down.

Garden items - In the last 12 months alone, more than 650,000 households have fallen victim to garden thefts. Secure outbuildings and place wired glass in the windows, keep ladders and lawnmowers anchored by a chain or padlock and chain together items of garden furniture to keep them safe