Sarah McCarthy of MBC Insurance
Phone : 068 59983
If you are looking for ways to keep your household costs down, taking the time to review your home insurance annually can be a great way of reducing your household costs. To help reduce your home insurance premium, our home insurance team have put together a list of tips and steps you can take to reduce your home insurance costs.
1. Review your policy annually
This might seem like an obvious step for many, but it is also one many homeowners overlook each year. As your home insurance renewal approaches, it is important to take the time to review the details of your cover as circumstances, such as the value of your buildings and contents may change year-on-year. Keeping your risk information up to date and as accurate as possible will help you get the cover you need at the best price.
2. Insure for the Rebuild Cost not the Market Value
Many people continue to insure their home for its market value or the amount they paid for the property when purchasing it some years ago. It is the current rebuilding cost of the property that you should insure as you will already own the land on which the property resides and you will not need to repurchase, should you sustain a loss. If you are unsure of the current rebuild cost for your home, the Society of Chartered Surveyors has a useful house rebuild calculator available on their website, which can help give you an estimate for your rebuild cost. Alternatively engage a local surveyor to carry out a rebuild valuation on your property.
3. Know your Contents value
If you over-value your contents when purchasing your home insurance you may end up paying a higher premium than required. In the event of a claim, your insurer will only pay out what they perceive to be the value of the contents insured. However, it is also important to avoid under-valuing your contents as, in this scenario, any claim you make could be reduced in proportion to the level you under-valued the contents. Take time to walk around your home and garage and make a list of your contents. You may be surprised at how much you have built up over the years!
4. Securing your Home
A safe home is a happy home and making your home more secure against burglary can not only give you some peace of mind but also leave a little extra cash in your pocket. Taking measures such as ensuring there are fitted locks in operation on all windows and doors and installing a monitored intruder alarm will all be viewed positively by your insurer and will help you reduce the cost of your home insurance.
5. Voluntary Excess
Did you know you could increase the standard policy excess on your home insurance? A voluntary excess can help bring down your home insurance premium. Excess represents the amount you will have to pay if you make a claim, while your home insurance provider will cover any remaining amount. If you are in a position to do so and you wish to take on a small portion of risk yourself, opting to pay a higher excess in the event that you have to make a claim can help reduce your premium.
6. Avail of Discounts
Many insurers now offer various discounts, which you may be able to avail of each year. Some insurers offer a discount for having multiple policies with them, such as having the family car also insured with your home insurer. If you are claims free for up to 5 years, you can also avail of a sizable “No Claims Discount”.
7. Direct Debit & Premium Finance
Did you know you could reduce your annual costs by paying your premium in full? Insurers & finance providers apply interest charges to monthly instalments if you opt for Direct Debit or Premium Finance payment methods. These payment methods can add up to 10% to your annual premium. You can avoid this by paying your premium in full.
8. Avail of the benefits of using an Insurance Broker
Many people will purchase home insurance from their mortgage provider, as it may appear a requirement to access the mortgage. Firstly, you do not have to purchase home insurance from your mortgage provider & secondly, your mortgage provider will usually be a tied agent for one insurance company. This means you will have a limited choice at both inception & each year thereafter. The same applies to purchasing home insurance online via direct insurance companies, be careful that you examine the benefits of cover carefully & keep an eye out for add-ons which if not selected can leave you without some key cover benefits you may require.
For peace of mind, engage with your local Insurance Broker who will have access to numerous Home Insurance providers ensuring you have more choice and access to the covers you need at a competitive price.
“Are you looking for home insurance? Here at MBC Insurance we can research up to 20 different home insurers which allows us access the covers you need at a competitive price. If you would like further advice on your home insurance you can contact me or my colleagues in our Listowel office on 068 59983”