Smart Approaches to Minimise Home Insurance Expenses and Maximise Value

At Bourne Estate Agents, we understand the importance of insurance when safeguarding your home. Within the current landscape of increasing living costs, it’s crucial to ensure that your home insurance expenses remain reasonable. Here, we present effective strategies to ensure optimal value for your insurance premiums.

If you’re looking for ways to streamline your budget due to concerns about rising mortgage payments, your home insurance might be an avenue to explore. Nevertheless, as mortgage borrowers, home insurance is mandatory. Instead of seeking to eliminate this requirement, why not delve into methods that keep your premiums in check while ensuring long-term value?

According to insights from Homeprotect, a leading insurer, the cost of home insurance is anticipated to rise in 2023 due to factors such as subsidence claims, frozen pipe pay-outs, and growing expenses in construction materials and labour. This underscores the importance of actively managing your premiums. Below, we present strategies to help you save:

Boost Home Security: Enhancing your home’s security not only deters potential break-ins but can also lead to cost savings. Our Chief Customer Officer, David Joyson, suggests that while insurance covers losses and damages, making frequent claims can result in increased premiums. Consider reinforcing security by upgrading your door locks, installing security cameras, and setting up a burglar alarm. The use of a security app for remote control of lighting and heating can further discourage unwanted intrusions. Joyson also highlights the effectiveness of gravel pathways for the noise they create, drawing attention to potential intruders.

Accurate Rebuild Cost Calculation: Precision matters when calculating your property’s rebuild cost, accounting for labour and materials for a complete reconstruction. Incorrect estimations can inflate your buildings insurance premium, while underestimating could leave you underinsured in cases of significant damage. Utilise resources like the BCIS Rebuild Calculator for guidance, especially for properties with brick or stone walls and tile or slate roofs.

Precise Valuation of Possessions: Accurately assessing the value of your belongings is equally vital. Dedicate time to determine the replacement cost of items at current rates, avoiding overpayment or loss during claim settlements. For instance, the average UK household possessions are valued at approximately £35,000, making precise valuation a necessity before obtaining contents insurance.

Engagement in Neighbourhood Watch: Participating in a Neighbourhood Watch program, designed to reduce community crime, can positively impact insurers’ perception of your property. Your involvement could lead to a reduction in your home insurance premium, indicating a lower level of claim risk.

Provide Accurate Occupation Details: Ensure that your occupation information on your insurance policy is accurate, as certain professions are deemed higher risk. Update your insurer if your circumstances change. Additionally, explore specialised insurance policies tailored to high-risk occupations.

Insulate Water Pipes: Taking preventive measures such as insulating water pipes both outside and within your property can mitigate the risk of burst pipes. While water damage is often covered, these proactive steps can contribute to a lower premium.

Electoral Roll Registration: Being registered on the electoral roll can have a positive influence on your insurance application. Insurance providers may use this information to confirm your identity during credit checks.

At Bourne Estate Agents, we are committed to providing you with valuable insights to enhance your homeownership experience. By implementing these strategies, you can navigate the landscape of home insurance costs more effectively while maximising the value you receive.

Source: Adapted from WhatMortgage