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How you can reduce
the costs of your home contents insurance
premiums
Sum-insured policies
base what you pay on the sum insured –
so the bigger that is, the more you pay –
while with bedroom-rated policies the insured
amount is based on the number of bedrooms.
With both types of policy, the amount you
have to pay varies according to where you
live – it is usually based on your contents
insurer’s record of claims for your
postal district: the more high-risk the area,
the more you will pay. Short of moving to
a low-risk area, there is not much you can
do about this – but you can cut costs
in other ways.
• Reduce the sum insured
If you own things that you would not necessarily
want to replace – e.g. LPs, shelves
full of paperbacks you are never going to
read again, white-elephant wedding presents
– you may be tempted not to include
them in your calculations. This is not a good
idea since the sum insured must represent
the total value of your possessions, irrespective
of whether you would replace every last item.
However, some insurers may be willing to specifically
exclude certain items provided that you both
agree to this (preferably in writing) when
you take out the policy. There is no guarantee
that your insurer will agree to your own personal
exclusions, but it is worth a try –
especially if you own a lot of things which
are of little value second-hand but which
would cost a lot to replace as new.
• Take security precautions
Fitting secure door and window locks is a
sensible precaution against burglary wherever
you live and many insurers will reward you
with discounts for being security conscious,
maintaining a regularly serviced burglar alarm
or belonging to a Neighbourhood Watch scheme.
If you live in a high risk area, your insurer
may insist that you install five-lever mortise
locks on external doors and key-operated window
locks on vulnerable windows before it will
agree to cover you against theft. If taking
security measures is a condition of insuring
you, the discount may not be on offer.
• Act your age
One of the advantages of growing older is
that you can pay less for contents insurance
(insurers believe that the older you are,
the greater care you take of your possessions).
Many insurers will give discounts to people
over 50 and some award discounts to the over-45s.
On the other hand, some insurers penalise
people under 30 by charging them more. If
you live with an older person make sure that
they are included under a joint names policy.
Having an older partner will mean you pay
less.
• Pay more towards your claim
Most insurers require you to pay the first
part of any claim – called a ‘compulsory
excess’. If you offer to pay more towards
each claim (a ‘voluntary excess discount’),
the cost of your insurance will go down.
• Avoid claiming
An increasing number of contents insurance
companies now offer discounts if you can show
that you have a claim-free record. If you
know that you have not claimed on your contents
insurance in the last couple of years or so,
it is worth asking whether a no-claims discount
is available. Most online application forms
will as your claims free period and either
exclude you or include the discount in the
contents insurance premium calculation.
• Avoid accidents
Cover against accidental damage to your contents
pushes up the price of your contents insurance
because there is a greater likelihood of your
claiming.
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