There are a large number of home insurance providers, each offering a different range of policy options. In return for cover you pay a monthly or yearly premium. Usually, it is less expensive if you choose to pay annually rather than monthly by direct debit: insurers often charge you extra if you decide to pay in monthly installments. Your home insurance premium will depend on a number of factors. These include:
> your home: its age, how it was built and its current physical condition
> security features of your property, such as alarms, locks and security lighting
> the risk of fire, including any risk factors such as thatched roofing
> the risk of flood or storm damage
> the risk of subsidence
> the level of cover that you wish to have
> the value of your belongings
> your postcode
> whether you are in a Neighbourhood Watch area
Essentially, the lower the risk of loss or damage the lower your premium should be. However, different factors are considered to be important by different insurers, which means that your premium will vary depending on which insurance provider you choose.
Cutting the Cost
To get the best home insurance deal it is important to compare a number of policies from several insurance providers. Each insurer will offer you a different quote and the difference between these can be large: ensure that you compare both the premium and the level of cover. It is not worth buying a cheap policy that does not cover you as comprehensively as you need.
Security is particularly important for insurers. Insurance providers will reduce your premium if you have certain security measures in place. These measures include:
> New door locks
> Approved locks on windows
> A burglar alarm
> Using time switch lighting to turn your lights on and off automatically when you are away
> Joining a local Neighbourhood Watch Scheme
> Security-marking your high value possessions, such as your computer or tv
For more information, see:
> Excess
