Household insurance is getting more expensive as insurers face increasing claims for flood and storm damage. Prices have also increased because industry mergers have led to fewer insurance companies offering cover, reducing choice for buyers.
If your monthly premiums have shot up faster than inflation, consider shopping around for cheaper cover. A growing number of websites now sell household insurance online at reduced rates. This makes it even easier to compare available deals. Otherwise, telephone a number of different insurance companies.
Buying your buildings and contents policies from the same company should save you money. Don't simply buy cover offered by your mortgage lender, as this is typically more expensive than buying a stand-alone insurance policy. You are not obliged to buy cover from your lender, although many homeowners wrongly believe they have no choice. Always check rival quotes from a range of insurers, as it could save you hundreds of pounds.
Improving your home security can also keep premiums down. Tell your insurer if you have installed a NACOSS-approved alarm and special secure locks, and you should get a discount. Some insurance companies may also offer a discount if you have built up several claim-free years on your insurance policy, similar to a motor insurance no-claims discount.
If cover still proves costly, you could consider dropping accidental damage cover from your policy. You can also save premiums by going without all-risks cover, which protects items taken regularly out of the house such as cameras or camcorders.
Keep an eye open for hidden policy costs. Ask how much excess you must pay when you claim. Many insurers charge an excess of around £50, but others may charge as much as £200. This keeps premiums low, but makes things pricey when you make a claim.
Premiums also depend on where you live. If your house is built in a postcode where subsidence is rife, or properties regularly suffer from flooding, you may pay more for buildings insurance. Contents insurance will also be more expensive in high-crime areas.