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[A838]Average Home Insurance Cost

by Peter Spyr, Pet

The cost of home insurance can go up by as much as three-times its original fee if the property reside in an expensive area. Think of the following ways to make a steal on home insurance.

The cost of home insurance varies dramatically in accordance with your area. Obviously, the more upmarket the area, the more expensive the insurance is. A recent survey suggested that postcode is most instrumental to determining insurance premiums for buildings, building contents and mortgages. The cheapest average cost, for example, is Llandrinod Wells, where insurance for contents and buildings is only £200, while in Peckham - in the more affluent South London - the same insurance costs over three times as much, at a staggering £700.

Another variable affecting the cost of home insurance is the increment in changeable weather conditions as a result of global warming. The number of winter storms has doubled over the past 50 years and has, logically, made an impact on the cost of cover.

The warmest periods of the 90s were towards the later-end of the decade; the supposed threats to homes has led to a nerve wracking rise in home insurance. The unprecedented high temperatures in the UK last year, for example, boosted subsistence claims to nearly £400m and the Association of Insurers states that if nothing changes the value of insurance claims could double and even triple in price by the middle of the century.

Given these influences, the first rule when you choose your home insurance is to be scrupulous about getting the amount of cover that you need. Utilise your area thoroughly, and find out the average premium costs that people in your area pay, and don't get duped into giving more.

At the same time, make sure you are getting the cover you need, especially if your house is likely to be damaged by storms or heat.

Lastly, with differences of up to £150 a year on protection for mortgage specific to the company, make sure you browse. Online comparison tools help you to find a good bargain, allowing access to quotes and coverage details and offers from numerous insurers in a matter of minutes; you can be confident you have sought and found the best deal, and can keep an eye on annual changes in cost. Don't get attached to one particular company if another offers a better price. Your loyalty is to the bargain, or deal, not the provider.

1. Research the area you're moving into

If you're moving home it pays to do some research into the area you're moving into. There is a correlation between how safe your area is and the cost of the premiums ? although not a direct correction ? a few miles, or even a few yards if your house is on the border of a two postcodes - can have a startling impact on the cost of your home insurance.

2. What cover do you need?

It's a basic tip but how much cover do you really need? Some insurance companies will heap on extra benefits as part of your policy and try to sell you upgraded services. Look carefully at what you really need and find a policy that matches your needs exactly, rather than paying for anything extraneous.

3. Shop around

It's easier than ever to buy insurance policies ? the Internet has hundreds of information sites like Motley Fool where you can research the different policies that are available, or visit a comparison site where you can search for the product that suits you. Many of the major supermarkets offer home insurance packages, such as ASDA Finance.

4. Buy online

Many insurance providers give a discount (usually around 5%) for buying online.

5. Home security

When you move in change the locks. Most insurers recommend five level mortise locks on external doors and two bolt locks on the windows, while an approved security system could save you over 5%. Other tips include time-switch lights and security lighting ? let your insurance provider know what you are doing and ask them to lower your premiums accordingly.

6. Join Neighbourhood Watch

It's a straightforward tip but in many areas joining an approved Neighbourhood Watch scheme has been shown to reduce premiums by up to 5%.

7. Fire

As with security, taking measures to reduce fire risk including smoke alarms and a fire alarm system can reduce premiums significantly. In addition, making sure open fires are protected and any heat source is given adequate ventilation and is not near anything combustible. Once again, inform your provider of the measures you are taking.

8. Don't smoke

Increasingly insurance providers are asking their customers whether they smoke or not ? smoking obviously presents a greater risk of fire from discarded cigarettes and unattended ashtrays.

9. Increasing your voluntary excess

The bottom line is that the higher the excess you choose on your policy the lower the premium. By choosing to take a higher voluntary excess you could save up to 20% on your insurance premium.

10. Only claim when you really need to

By only claiming when you really need to you will protect your no claims bonus and keep your premiums lower.

Finally, there's one extra tip that most insurance companies won't want you to have ? that is, haggling. There are dozens of insurance providers out there vying for your custom. It is in your interest to compare prices and haggles so that your can get the best deal for you.

Article Source : Pg. 2

About Author

Both Peter Spyr & Katie Brown are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.

Peter Spyr has sinced written about articles on various topics from Leadership, Insurance and Poor Credit. For more information on insurance for the over 50s, visit Rias .. Peter Spyr's top article generates over 60500 views. to your Favourites.

Katie Brown has sinced written about articles on various topics from Mortgage Insurance, Auto Insurance and Finances. ASDA Finance is so good, they've won the award for Best Overall Home and Contents Insurance Provider by 'Your Money' magazine.. Katie Brown's top article generates over 27100 views. to your Favourites.