How To Pay Less On Home And Contents Insurance

Buildings Insurance went up again last year, costinginsurance industry where it hurts - their pocket.
homeowners another 1% a year, taking the average to- Burglars pick posh neighbourhoods to ensure they
just over £205 for a year's insurance. Contentsget away with the best items - with expensive items
insurance also went up, this time by 2% - now it costslike jewellery for the taking, the value of these kind of
the average homeowner £151 a year. However,claims is increasing.
some lenders are hiking prices even higher than that -Insurance companies use statistics relating to a
Norwich Union for example, raised its prices by apostcode area to calculate premiums for everyone in
whopping 6% last year.that area. If your neighbours have suffered subsidence,
The question is - why? There's so much competitionor your area is near a river which has been known to
out there, you'd expect prices to be falling, notflood - you will have to pay higher premiums. Similarly, if
increasing - but there are other forces at work, as wepeople in your area have been broken into, then it will
go on to discuss.be assumed that you are at a higher risk of making a
No 1 - the cost of having a house repaired or rebuiltburglary claim too.
Labour and building materials are getting more costly,Having a no-claims discount is a help when it comes to
so when the insurance company calculates how muchoffsetting the annual rise in premiums, but insurance
it would cost to rebuild your house, prices are higher.companies cap these discounts once you have 5
This is due to inflation, and the same thing affects theyears no claims, so you will not get any further
insurance company and its own operating costs.discounts.
Wages, bills, office rental - all these costs areSo is there any way to avoid the rising cost of home
increasing year on year - so of course insurers haveand contents insurance?
to factor these in.The first thing you can do is look around for the best
No 2 - the weatherdeal. Try the Internet for the best deals, because most
The British weather is getting more and moreinsurance companies offer a discount, often 10%, for
tempestuous, whether it's due to global warming wecustomers that buy online. You will also save if you
are not qualified to say, but it's a fact that we havepay by direct debit. It's tempting to accept your current
been experiencing a lot of extreme weather in theinsurer's renewal quote but don't be fooled - the small
past few years. The 1987 hurricane was a freakamount of effort it will take to shop around will pay
occurrence, but flash floods such as the incident ingood dividends. One of the reasons for this is because
Boscastle, Cornwall, Helmsley in North Yorkshire, andinsurers always offer their best deals to new
Carlisle are making the headlines on a regular basis.customers, existing customers are virtually penalised
The Association of British Insurers has stated that thefor showing loyalty!
average insurance claim due to flood damage couldImproving your home security is another good way to
be anything from £15,000 to £30,000, makingreduce premiums - while giving you essential peace of
huge dents into the insurance industry's profits. In fact,mind. Neighbourhood watch schemes, external security
floods cost insurance companies millions every year.lighting, a burglar alarm, security locks on windows, and
No 3 - Burglaryindustry-recognised locks on external doors will make
Claims due to burglary have been going up, nowa difference. Obviously these things cost money to
average at around £1,400. The 2 main causesinstall, but they pay for themselves in the long run.
are:Play the insurance company game and you will always
- From digital cameras to laptops, game consoles towin - shop around, be prepared to move insurance
ipods - our houses are full of electronic gadgets with acompany every year, and don't accept any high prices.
high value bought new, and a high value resold.There's always a better deal out there!
Burglars are after these items and it's hitting the