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How To Reduce Your Home Insurance Premium Bills

Updated on May 20, 2013
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Paying bills is one of those necessary evils that cannot be avoided and, no matter how much you try to ignore them, remain due to be paid. In fact, unlike the benefit that can be gained from avoiding purchasing the latest gadget or a new pair of shoes, there is no saving to be made from avoiding paying bills. Not only will the original sum remain outstanding, but there is also the potential for penalties to accumulate, which will only make the problem worse.

Rather than stick your head in the sand like the proverbial ostrich, it is possible to make bills a little more palatable. By taking some steps to reduce the amount that is payable for bills, you can get the satisfaction of not paying over the odds while keeping on top of your finances.

This will help to lessen the feeling that you are only working to pay bills that seem to increase every month. When it comes to bills for insurance premiums, doing some work to limit the amount to be paid will help take away the temptation to do away with the insurance cover all together. The benefit of an insurance policy is not immediately evident in the same way that a new piece of furniture would be, for example. In most cases, an insurance policy will be purchased and put away for safe-keeping and not be thought about again unless a claim needs to made, if ever.

Due to this, it is tempting to avoid the bill altogether by seeing the insurance as unnecessary and not bothering to purchase it. However, this is not a good idea as, at best, it could leave you with an even larger bill should the worst occur, such as a fire without the benefit of buildings insurance. At worst, it could mean you are breaking the law, as in the case of operating a vehicle on the road without a valid motor insurance policy in place.

While home insurance may not be compulsory, it is still a recommended form of insurance to have both for those who own their homes and for those who rent. Rather than focussing on the cost of the premium for the policy, it is best to consider the possible outcome of not having the protection of insurance in the event of an insured peril.

If you are lucky enough not to have experienced a risk that could be rectified with insurance, take a trip to a hypothetical land. In the event that your home were to suffer a catastrophe, such as a fire, flood or burglary, consider the extent of what you could lose and whether you could afford to replace it all.

This is one of the reasons why the value of all your contents is a question that will be asked as it will determine the extent of the risk and, accordingly, the amount of premium that will be charged. In order to reduce the risk presented by the value of your contents, it is worth considering placing high value in a safety deposit box at a bank. This will take the loss of these out of the equation.

Where this is not possible, having a safe within the home in which to store valuables is the next best thing. This will be taken into account by the insurance underwriters and may reduce the premium. Bear in mind that a safe that can be purchased from a shop and simply brought home with you is unlikely to be considered of any significance. A safe must be securely installed into a wall or floor by professionals and it is beneficial to select a well-known name in the field of safe production. It is also a good idea to Would be beneficial is safe was also waterproof and fire proof to offer added safety and reduce the risk of valuable items being damaged or destroyed

Security plays a major role in the calculation of premium so other factors of this type can also be considered. It is important that the doors locks are fit for purpose and are fitted to each and every door from which it is possible to gain access outside. At a minimum, these should meet national regulatory standards. Increase security by adding more locks and even fitting and using locks on internal doors, which will hinder a burglar’s ability to get access to rooms.

Windows provide a potential access point to your home, accordingly, it is essential for these to be as secure as your doors. The windows should be able to be locked from the inside for Insurers to consider them a factor that would improve the quality of the risk presented by the proposal when you are seeking a quotation. Again, these should meet the minimum regulatory standard. In addition to the locks, the glass used in the windows must also be considered as double glazed windows are not as easy to break as single glazed. If you have them, make sure you mention this when seeking a quote. If you are considering having double glazed windows fitted, this factor may help you to reach a decision.

Additional security features are always helpful in presenting a risk that Insurers wants to underwrite. There are many security features that are compulsory, but installing any over and above these will be looked upon favourably by the Insurers. Floodlights, for example, can be effective in deterring burglars who often prefer to work under the cover of darkness. Alarms can be equally beneficial especially when you are away from home and offer the added benefit of being linked to a security company who are in a position to immediately contact the emergency services when an insured event occurs.

A fire alarm is often the first warning sign of a fire having started and will be considered by Insurers when calculating the premium that will be charged. They are easy to obtain from hardware stores and are easy to install and maintain.

It is likely to be a condition of the policy that you keep your home and garden in a good state of repair will be an important consideration for Insurers and is often a condition of the policy that must be complied with to ensure no problems in the event of a claim. For example, disposing of garden waste properly may help to reduce the risk of fire. There are also actions that help Insurers to determine the extent of the moral hazard that you represent. For example, if you have used a ladder to undertake work to the roof or guttering, leaving it up against the house is not a good idea as it offers burglars a route into the house – make sure it is put away; or keeping large amounts of money in the house for no reason is not recommended.

Avoid any action that would tempt a burglar, like leaving pieces of garden equipment outside after they have been used – make sure they are securely stored to avoid them being stolen or damaged by the elements. In addition, use window coverings to prevent people from being able to see inside your home.

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If you are switching home insurance provider, they may ask you about the length of time that you have not made any claims as you may be eligible for a No Claims Discount. Accordingly, when you leave one Insurer to get a policy with another, get written confirmation from them of the length of time in which you had not made a claim – if you are lucky enough to be in this position.

It is possible to get a reduction in your premium if you are prepared to accept a voluntary excess or deductible. This is the first sum of any claim that a policyholder is required to pay. There is usually a minimum sum that the Insurance Company will require, but it is possible have this increased in exchange for a lesser premium. Consider how much you could afford to pay in the event of a claim and remember that the Insurer will pay nothing if the total cost of the claim falls below the excess amount.

There is a reason why you are required to answer so many questions when seeking a home insurance quotation. The responses allow the underwriters within insurance companies to consider the extent of the risk that is being proposed, which – in turn – enables the correct premium to be calculated. Take note of the questions being asked so that you can determine how the answers will affect the premium.

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If you are switching home insurance provider, they may ask you about the length of time that you have not made any claims as you may be eligible for a No Claims Discount. Accordingly, when you leave one Insurer to get a policy with another, get written confirmation from them of the length of time in which you had not made a claim – if you are lucky enough to be in this position.

It is possible to get a reduction in your premium if you are prepared to accept a voluntary excess or deductible. This is the first sum of any claim that a policyholder is required to pay. There is usually a minimum sum that the Insurance Company will require, but it is possible have this increased in exchange for a lesser premium. Consider how much you could afford to pay in the event of a claim and remember that the Insurer will pay nothing if the total cost of the claim falls below the excess amount.

There is a reason why you are required to answer so many questions when seeking a home insurance quotation. The responses allow the underwriters within insurance companies to consider the extent of the risk that is being proposed, which – in turn – enables the correct premium to be calculated. Take note of the questions being asked so that you can determine how the answers will affect the premium.

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