Lowering your home insurance premiums

Home insurance – it’s not just for homeowners, but tenants of rented accommodation, too. According to figures published by the Association of British Insurers (ABI) on the 21st of February 2018, the value of the average household’s contents now stands at £35,000 – well above the average annual pay of £27,000.

Yet as many as 16 million households in the UK have no home contents insurance cover, notes a story in the Sun newspaper on the 29th of May 2018.

If you are one of those 16 million and have been put off by the potential price of home insurance premiums, here are a few tips and suggestions for lowering the cost:

Shop wisely

  • even the quickest of online searches is likely to reveal what a huge market there is in home insurance, with a very broad spectrum of prices to match;
  • it pays to shop around, therefore, but even better to enlist the help of an independent, specialist home insurance or tenants contents insurance provider, who is able to do the searching for you and come up with the package most likely to suit you and your needs at a competitive price;

Don’t underinsure your contents

  • home contents insurance is designed to equip you (up to pre-agreed limits) with the necessary funds to repair or replace any items which are stolen, lost or damaged;
  • the settlement of your claim may be on a “new for old” replacement basis or after the deduction of an amount representing the likely “wear and tear” of the lost or damaged items;
  • either way that calls for a meticulous appraisal of all of the contents of your home, preferably on a room by room basis, to ensure that the total sum insured reflects an accurate replacement basis – or you may be left with insufficient funds to buy replacements in the event of a claim;


  • your home insurance typically attracts an excess on the various types of claim you may make – meaning that you are responsible for contributing that amount towards the settlement of any successful claim;
  • you might agree to increase the amount of excess payable in return for a decrease in the price of your premiums – since you are sharing more of the risk with your insurer;

No claims discounts

  • like many other types of general insurance, home insurance for your contents typically earns a no claims discount the longer you remain claims-free;
  • by avoiding smaller claims and simply footing the cost of any losses yourself, or by increasing the general security of your home, you might, therefore, rack up a bigger no claims discount more quickly – thus saving on the cost of the premiums you pay;

Combined building and contents insurance

  • if you are an owner-occupier, you are probably on the lookout for both building and contents insurance;
  • although they are available to buy separately, a combined building and contents insurance package from the same insurer typically works out the cheaper option.

With so many ways to lower the price of the premiums on your home insurance, neither owner-occupiers nor tenants need worry about leaving their valuable belongings and personal possessions without the appropriate safeguards.