Your home insurance excess can affect the cost of your premium. Your excess is the amount you pay out of your own pocket for each insurance claim. If you are okay with paying a higher excess, your insurance premium may be lower. Conversely, if you choose a lower excess, you may pay a higher premium.
If you also want to buy insurance for your belongings, a combined home and contents insurance policy may have a lower premium than paying multiple premiums on separate policies for your home and your belongings. Applying for additional policies from the same insurer (e.g. car insurance) or even other financial products the provider may offer (e.g. bank accounts, credit cards) may allow you to benefit from a bundle discount, though you should check that these financial products also suit your household’s financial needs.
Accurately estimating the value of your contents can also help to reduce the size of your premiums. When you overestimate the value of your insured items, you can end up paying a higher premium than necessary. However, in the event of a claim, you receive the same outcome as if you had accurately assessed the value. Conversely, if you underestimate the value of your insured items, you may not receive enough compensation to replace them adequately when a claim is made.
Having home security can prevent unwanted intrusions and theft. Additionally, investing in home security measures can lead to reduced insurance premiums. Insurers often view well-secured homes as having lower risks of break-ins, which, in turn, decreases the likelihood of insurance claims. By installing security systems like alarms, you not only enhance the safety of your home and provide peace of mind for your family but also have the potential to enjoy cost savings through lowered insurance premiums.