How to save money on your home insurance

Buying and renewing insurance online can seem stressful and confusing. There are a huge range of options available. And prices seem to change all the time! How do you know you’re getting the best deal? We’ve put together some tips to help you save on your buildings and contents insurance.

Be sure to choose the cover you actually need

The kind of home insurance you need depends on your home. You need buildings insurance if you’re buying a property. But if you’re renting, this is usually your landlord’s responsibility. And the benefit of contents insurance really depend on the possessions and lifestyle you have. If you’re not sure what sort of policy or level of cover you need, there is useful advice on the Money Advice Service website.

Be careful not to over- or under-insure. If you buy more cover than you need, you will pay more than you should. Conversely, if you under-insure and have to make a claim, the insurer may reduce the value of your claim. You only need to insure the building for its rebuild cost, which is not the same as the cost of the property – the Royal Institution of Chartered Surveyors have a rebuild value calculator on their website. And if you buy contents insurance, it may be worth doing an inventory of your possessions and their value.

Shop around

Your bank or mortgage provider, or even your landlord or letting agency may imply that it’s compulsory to buy insurance from them. It’s not! If you do this you could pay more than you need to. The same applies if you let your policy auto-renew. Some insurers will guarantee to beat any like-for-like quote or the renewal of your existing policy by up to 10%! Use more than one comparison website to make sure you’re getting the best deal. You can find a useful guide on MoneySavingExpert.com.

Buy buildings and contents insurance together

If you need both buildings and contents insurance, then buying them together is usually less expensive. This is because you may get a discount for buying both from the same company. It will also make the process of claiming easier, if something happens.

Boost your home security

There are some things you can’t control when it comes to buying insurance. One is your postcode, and how risky insurers perceive your area to be. But you may be able to lower your premiums by increasing the security of your property. Some insurers give a discount for taking steps that help to keep your property safe. These include joining a Neighbourhood Watch scheme and installing burglar alarms and security lights. Meanwhile, some companies won’t insure you at all unless you have BSI-approved locks on all outside doors and windows.

Think about how to pay

Paying monthly often costs more. We realise that when you’re living on a DMP budget you may not have the funds to pay all in one go. So keep an eye out for insurers that don’t charge extra for payment by monthly instalment. There are a few!

Increasing the voluntary excess on your policy will usually cut your premiums. But don’t forget this means you’d have to pay more yourself in the event of a claim.

Don’t leave it to the last minute

As with car insurance, there is evidence that buying your home insurance three weeks ahead of the start date can save you 20% or more! Insurers say this is all about risk. Customers who don’t renew until the last minute might be less prudent and more rushed in other areas of their life. Insurers think this makes them a riskier prospect to insure.


As with almost all utilities and household bills, the best way to save money is to shop around and avoid rushing. We hope these pointers help you to save. Check out our blog for more money-saving tips and tricks!

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