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Home insurance premiums – how to cut costs
One of the biggest influences on the size of your home insurance quote is, believe it or not, your postcode. Insurance companies have access to a database listing every postcode in the country with a value attached correlating to the relative risk to the insurer of insuring a property in that area. Factors such as the risk of subsidence, the crime level in your area, the risk of flooding, and the number of claims made by other residents in the past, can all affect this rating.
Another thing that insurers will take into account when determining your premium is your no claims history. Customers who have rarely, if ever, claimed on their insurance will be much more likely to get a cheap insurance quote. Your lifestyle may also be a factor in deciding how much you have to pay for home insurance. For instance, if you plan to leave your property for more than a month at a time, you will have to notify your insurer of this beforehand or you may be breaking the terms of your policy. Similarly, if you regularly leave your property empty for work or social reasons, you may well have to pay more to insure your property than someone, such as a retiree, who is at home more of the time.
However, there are several things that you can do to cut the cost of your home insurance. You could agree to pay a percentage of any claim that you make – a figure known in the industry as the excess. Also, installing smoke alarms is also a great way to reduce your premium, as is upgrading your home security by installing better locks, burglar alarms, or CCTV cameras. Protecting your home against flood damage - if you live in an area that is considered flood-prone - can also seriously reduce your quote.
You may find that you are able to save money by getting buildings and contents insurance together from the same provider. For instance, Kwik Fit Insurance offers their customers up to 15% off their home insurance premiums if they choose to combine buildings and contents insurance into one bill. However, it’s always worth shopping around, as you may be able to get cheaper cover from separate providers in some circumstances.
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