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Are there any Tips on ways to reduce ones premiums?
Some people feel that the only way to reduce their home insurance
premiums is to cut back on the cover that is asked for. This is
not a clever way of going about cutting costs though. You need that
cover, and should something happen to your home, you will not want
to be left so far short with your cover that you can’t get
your home rebuilt. So, how else do you cut your premiums?
Firstly, you should take the time out to get as many quotes as
possible. It seems a simple idea, but you need to shop around to
find a cheap premium. You also need to compare what each policy
includes, so you really are comparing like with like.
Then, you should try and get into a head of a burglar and look
through a burglar’s eyes at your home. Ask your insurer or
your local crime prevention officer for a list of measures that
you need to take to improve the security of your home. You should
also join a neighbourhood watch scheme in your area or set one up
if it doesn’t exist.
Once you get a list of measures to improve the security of your
home, you should carry out as much as you can. Put the burglar alarm
up there, improve your locks and add bolts, add key operated locks
to windows and strengthen them.
It is almost certain that Insurers who see that a policyholder
has taken preventative action will see them as a better risk and
lower their quotes. You should actually check with an insurer about
this, as some will be offering no claims bonuses like those more
commonly associated with car
insurance policies.
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Some people bought their building
and contents insurance via the bank or building society
with which they arranged their mortgages.
You don’t have to do this, unless you have agreed to a special
mortgage deal compelling you to buy ‘their’ insurance.
This may seem to you to be convenient and a small price to pay for
your good mortgage deal, but do your maths. Mortgage
lenders say that this means they like to provide the
insurance
so they know that their “investment” is protected. But
they may not be offering a good deal in terms of price, so you should
shop around. Bear in mind that the mortgage lender will want to
approve of the insurer and check through your policy details. Not
all insurers are reputable remember.
If after you have several quotations, you are still not happy
with the amount of your premiums. Consider paying a higher excess.
Should you claim, you would have to pay a larger amount towards
it, but your premiums would be lower.
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