Just like clothing, food, energy and seemingly most things these days, the cost of insurance is climbing.
The Association of British Insurers (ABI) found that the average price of home buildings insurance rose 6% this year, up to £315 compared to £298 in 2022. The cost of a combined buildings and contents insurance policy also rose slightly more, by 6.7%.
Even among rising costs and tightening budgets, insurance is vital. That’s why we’ve compiled some of our top tips for saving on your buildings, contents or a combined insurance policy, so you don’t have to miss out on the cover you need.
Should I get contents insurance?
Around half of UK tenants have contents insurance. These policies cover their possessions in the event of a fire, flood or burglary. Depending on the policy, your insurer will either replace damaged items or pay out their value.
Households across the UK are searching for ways to cut back on bills, so it may seem counter-intuitive to set up a new policy, especially if you’ve never had contents insurance before. However, home contents insurance can be surprisingly affordable. Money Supermarket found the average household paid just £76 a year for their contents insurance in 2022, while the ABI calculated the figure at £139, or about £2.70 a week.
When considering setting up an insurance policy, make sure to consider not only if you can afford the policy, but also if you could afford to replace your furniture, electronics, clothes and jewellery in the event of a disaster.
Save on your home insurance
Working from home
As you set up a new home insurance policy, you’ll be asked questions about how you use your property, including about working from home. However, according to the ABI, there’s no need to inform your insurer if you’re doing office or clerical work from your spare room.
Instead, you only need to inform your insurer if you keep stock at home, or if you host business visitors at the property. You’ll usually pay additional fees to cover your business operations, or even be required to take out separate business insurance, so only mention that you work from home if it’s required.
Many insurers will offer you a choice between a one-off annual payment and a recurring monthly plan, but be careful. Monthly plans usually include interest on your payments, meaning you’ll spend more over the course of the year. If you can, pay for an entire year of cover up front and avoid the extra cost.
Save on your contents insurance
Know what you’re worth
When you first set up your policy, it’s important to give an accurate estimation of the value of your possessions. Estimate too high, and you’ll pay higher monthly premiums than you need to. Estimate too low, and in the event you need your insurance you may receive a payout too low to replace your items.
Typically, a contents insurance policy won’t cover you in the event of accidental damage. If you don’t regularly take valuable items out of your home you can probably save by avoiding it, but if you’re clumsy or travel with valuable electronics or a bike it may well be worth it. While shopping for insurance, compare the price of adding accidental damage cover to your contents policy against taking out a separate policy for your gadgets or bike.
How to find a great deal on home insurance
When our clients are looking to save on home insurance, we have two recommendations depending on their needs.
For those looking to quickly set up a great value insurance policy that they can easily adapt, we recommend Getsafe Insurance. Getsafe’s technology-based approach means they can offer low-priced insurance policies while still offering customers flexible, comprehensive coverage with no hidden fees.
For clients who want to speak with an expert and compare policies from the UK’s top insurers, we set up an appointment with our partner brokers Safe and Secure. Safe and Secure compare policies from the UK’s 5* Defaqto-rated insurers against each client’s individual requirements to find them the perfect cover.
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