There are certain things in life we need and others we just want. Insurance on the other hand seems to fall into a new category: something we should have, but we don’t need and we don’t want. However, insurance can come in mighty handy. Don’t miss the tips at the end to save money on home insurance.
Take for example the devastating floods of summer 2007, the wettest July on record. Thousands of homes, particularly in Gloucestershire, were inundated with water for weeks.
In the freak rains of December 2015, people in Cumbria suffered the third flood in 10 years.
For people without insurance, this was not only a costly natural disaster – cleaning, repairing and replacement costs were astronomical – it also meant they had nowhere to live so had to call on friends and family or fork out on hotels.
Those with insurance were thanking their lucky stars their only real loses were treasured photographs and family heirlooms.
However, the average homeowner rarely claims on their home insurance and they end up paying several hundred Pounds a year into an insurance policy to never see that money again. So, what do you do?
The issue always is: what if? Surely it’s better to be prepared for the worst and hope for the best?
For most people, buildings insurance is now pretty much compulsory seeing as mortgage lenders generally require you to have this form of insurance before they will offer you a mortgage. However, it is not strictly speaking a legal requirement unlike car insurance. Contents insurance on the other hand is completely down to you and your personal choices, however, seeing as it is the contents that turn a house into a home, it makes sense to insure them too.
So the best solution is to cave in and get insurance whilst making sure you are paying a rate that offers the best value for money.
How to Reduce Home Insurance Costs
If you want to get the best value rate possible, here are six things things you can think about doing.
- First – shop around. Comparison sites are useful but some big firms aren’t listed. It can be well worth an hour of your time for a few phone calls.
- Never just renew a policy. Often they sneak the price up with no justification whatsoever. Shop around.
- If you’ve been with a company for a year or two, get the best price and then phone them to see if they can beat the price
- Installing a burglar alarm is one of the easiest ways to reduce your level of risk thereby making you a safer option. Insurers will therefore be able to offer you a lower rate.
- If you do want both buildings and contents cover, buy them together as a joint policy from one company. Not only will you save money, but there will be less paperwork and a lot less hassle.
- Pay your premium annually rather than monthly. Interest is often included in monthly payments, so by paying annually you will completely avoid any kind of interest or fees.
Articles on Money Saving, Making Money & Finance Etc
- 5 Top Tips For Taking Your Pension Early
- 7 Effective Tips for Betting on A Budget
- A Guide to Creating A Saving Plan That Works
- Exploring remote games
- Finding the Right Loan Option for Your Lifestyle
- Getting the most fun for your money
- How minimum wages affect living standards
- How to Find a Loan When Your Savings Fall Short in an Emergency
- How To Have an Exact Calculation of Your Monthly Mortgage Payment
- How to make large profits out of property
- How to Save Money as a Young Family
- Low-Cost Ways to Start A Home-Based Business
- Some Fun Ways That You Can Make Money From Home
- The cheapest way of transferring money abroad
- Top Effective Ways to Earn More Money Online
- Why Updating Your Office Window Treatments will Help Increase Productivity
- Use a Credit Report to Get the Best Credit Deals
- How to Keep on Top of your Household Bills
- How Your Credit History Really Affects Your Mortgage
- Save Money when Living Alone
- Green Ways to Save Money in Winter
- Money Saving Tips – Helping Your Home Finance
- Financial Planning – Make a Budget and Take Control
- Reduced Payment Arrangements & Bankruptcy
- Green Investment Opportunities
- Renovating? Don’t let it affect your home insurance
- Headline Interest Rates for ISAs
- A few reasons why you should buy home insurance
- Living on a Budget Need Not be Bad
- Save Money with Casino Comps: Boost Your Bankroll Instantly
- Speculate to accumulate: How educated gambling can help you earn money
- Are Binary Options Investing or Gambling?