If you haven't reviewed your home and contents insurance policy within the past 12 months, you could be paying too much. There are a number of factors that affect the cost of your premium, which is why it is so important to do your homework prior to committing to an annual policy. A few simple tips can make all the difference in lowering your insurance premiums. We take a look at the merits of each.

Be sure to do your homework and find the best deals

Not all home insurance policies are made equal, so it’s important to do some research to get a good idea of what you could be getting for your buck. You can do this by getting quotes online, but by far the best way to ensure you are getting the best deal is to go through a qualified insurance broker, who has access to a broad range of policies for you.

Remember that looking for a good deal is important even if you have an existing policy. There may be an insurer who can undercut the market and offer you lower premiums than your current lender.

Raise your excess to lower your monthly insurance premiums

Your excess (also known as your deductible) is the amount that you have to pay in from your own pocket for your insurance policy to pay out a claim. If you opt to pay a higher excess, your monthly home insurance premiums can be reduced. This does mean though that, when you do make a claim, you will have to pay a lot more for your insurance company to pay out their share, so be sure to weigh up the pros and cons of this scenario with a trusted advisor.

Combine your car insurance with your house insurance

Some insurance companies will offer you a discount on your premiums if you buy a combined car and home insurance package from them. Again, we suggest that you do some proper homework before committing to a deal like this. Your current insurer may ask for a higher excess than you are willing to pay if you pull your car insurance under your home insurance, but you may find a deal that suits you just fine.

Upgrade your home security system

The less you claim for losses or damages to your property or possessions, and the more you can assure your lender that you are being as safe as possible, the lower your premiums are likely to be. This is why it’s a good idea to install a monitored home security system – to reduce the chance of a break-in or the possibility of any of your possessions being stolen.

We know that all of this is a lot to keep in mind and that you’re probably feeling some anxiety about making the best decisions possible. Why not talk to one of our experienced mortgage brokers absolutely free of charge, to make sure you’re on the right track?

Image Credit:srmotorcars.com