Paying Home Insurance Monthly Costs More

By Julian Stone
Homeowners may have to spread the costs of their home insurance and pay monthly but this can be a costly option.
Research by moneysupermarket.com shows that on average homeowners can pay almost 12% extra on top of their original home insurance premium just to spread the cost and pay monthly.
Shopping around though can help with the extra cost being reduced to just over 5% and in with some policies to 0%.
As Pete Harrison, insurance expert at moneysupermarket.com suggests: “Using a zero per cent purchase credit card to pay for home insurance allows people to spread the cost over monthly instalments without accruing interest.”
But as he adds: “Credit card users need to be disciplined and look to pay off the balance within 12 months otherwise or before the promotional rate expires, whichever comes first, otherwise you may end up paying for insurance which is no longer valid and have to pay for a new policy as well.”
As well as shopping around, other ways to help save on your home insurance include ensuring you only buy the cover you really need. For example do you need accidental damage cover? If you think the answer is yes, is it still yes when you realise it can add up to 25% to your premium cost?
Also, think twice before making a claim. If you have a minor issue it may be better not to make a claim and instead protect your no claims discount.
Do you know the difference between a compulsory excess and a voluntary excess? Some insurance policies have a compulsory excess which must be paid. A voluntary excess only applies if you’ve added it to your policy. Voluntary excess can be used to help reduce the insurance premium. However, you need to be aware that in the event of a claim, the voluntary excess and the compulsory excess together can be expensive.
With help from moneysupermarket.com, other top tips on home insurance include

• Change the locks – If you’ve moved to a new home you never know who might still have a key. It is important to maintain locks. Five-lever mortise locks are recommended for external doors while windows should ideally have two bolt locks.
• Install a good home security system – The NACOSS standard alarm can cut premiums with some companies by 7.5%.
• Time-switch lights – Your home is more vulnerable to theft when you are not around and using time-switch lights will give the impression that you are at home.
• If you are away – Remember to cancel newspaper and milk deliveries and ask someone you can trust to open and close the curtains and collect mail.
• Keys – Don’t leave them in obvious places such as under a doormat. Also beware of ‘hook n crook’ thefts – where keys are left so close to a door that a burglar can simply hook them through a letterbox and open the door.
• Install security lighting – illuminate your visitors for their safety as well as your own. Unwelcome visitors are less likely to loiter if they’re ‘in the spotlight’.
• Join a neighbourhood watch campaign – this can help to reduce your premium if you inform the home insurance company of your participation in a scheme. It can reduce your premiums by up to 5%.
• Avoid frozen and burst pipes – If you think pipes are frozen, turn off water at the valve and header tank to cut down the water that can escape.
• Look out for subsidence – One of the most common problems to affect the home but usually covered in your building insurance policy. Look to see the excess level on subsidence and if your garden walls are covered.
• Fire – Fit a smoke alarm and take simple steps to avoid accidents. Most fires in the home are caused by smoking or cooking – don’t smoke in bed, don’t leave cigarettes lying around and don’t leave cooking unattended. Also close doors at night to contain fires, check the home is safe before going to bed and keep matches away from children.

MoneyHighStreet comments: “Whilst many are trying to save money, it is important to buy the home insurance cover you need. Don’t cut too much out or just opt for the cheapest price if as a result you end up with an inappropriate policy.
When assessing the policy you need, don’t forget to make sure your valuable collections are fully covered and indeed if you have recently inherited anything that these items are valued and included too.