How to cut the cost of home insurance

Many insurers are seeking to attract new customers and capitalise on the fact that home insurance premiums are rising. Incentives such as a 50% discount off the annual premium are rife at the moment.

However, you shouldn't be bamboozled by such offers as a hefty 'discount' doesn't necessarily mean that will be the best deal. You may still be able to find a cheaper premium elsewhere although it's important to remember that the level of cover is also crucial.
The aim is to combine both of these factors so you get the cover you need for the lowest price and we can help with that:

Be careful with discounts

Though discounts such as 50% off are well worth considering, don't assume that they are the best deals available. Fifty per cent off one deal will not make it the cheapest if it was twice as expense as another policy to begin with. So make sure you still shop around.

Don't pay for loyalty

Don't stick with the same insurer year in, year out and accept renewal increases. As the recent financial makeover we did for the Symons family illustrates this can be a very costly mistake. Like many people Jo Symons had just renewed with the same insurer year after year and was paying £1,125.60 for buildings and contents cover. By using moneysupermarket's comparison tool, we managed to slash that cost to just £150.96 a year, saving the family a massive £974.64.

Consider combined policies

It may be cheaper to get buildings and contents cover from the same insurer rather than having two separate providers.

Use the internet

Most home insurance providers offer their cheapest deals online due to the savings they make on overheads such as call centres and paperwork. So make sure you use the internet to search for deals.

Compare policies

Instead of shopping from provider to provider, use a comparison website to compare deals with one search - potentially saving you time and money. Our home insurance comparison tool compares rates from more than 40 providers.

Pay annually

Paying home insurance in monthly increments may be convenient, but it can also be expensive. Most providers hit you with interest charges if you pay monthly, so pay annually if you have enough cash to spare.

Build up a no-claims discount

Think twice before making small claims because you could save around 20% on a policy if you build up a no-claims discount over several years. Just remember though that no-claims bonuses are separate from the cost of the policy and so your premiums could still rise if your insurer believes you are at a heightened risk of making a claim.

Make smart replacements

If you are replacing windows and doors in your home, consult your insurer about your choices. Front and back doors should be certified to British Standard PAS 24-1 and be fitted with a chain or door viewer, while laminated glass or double glazing for windows may be recommended as it is more difficult to break.

Get to know the neighbours

Living in a Neighbourhood Watch area could earn you a discount with some insurers although this is becoming less common.

Fit a burglar alarm

Insurer approved alarms such as the NACOSS alarm system can earn you discounts in the region of 7.5%. However, bear in mind that these are expensive alarms that require an annual check-up.

Check the locks

Pay attention to the locks on windows and doors particularly on downstairs floor levels. Five-meter mortise locks are particularly popular with insurers as they can only be opened with a key.

Fit time-switch lights

Time-switch lights give the impression that you're at home even when you're not - which can be an excellent deterrent particularly if you enjoy lots of nights out or weekend breaks. Ask your insurer if it will offer a discount for time-switch lights, as many will.

Don't forget the garden

Most insurers offer garden cover with their policies so keep your garden secure too as many of us keep high value items there such as patio furniture, power tools and ornaments. Fitting high fences, planting prickly hedges or installing security lighting and cameras can all help you save - and make sure your outbuilding is locked with a secure padlock.

Take special precautions

Do you take any special precautions to protect your property? For example, do you have a safe in your home? If so, make sure your insurer knows about it, as a discount may be available.

Be prepared for fire

Smoke alarms and fire extinguishers can stop a fire from getting out of hand and so most insurers will expect them to be fitted - you could be penalised heavily if they're not.