Home insurance plays an important role in home ownership. While the average cost of home insurance hit a record low of £300 in 2022, according to research, the tide may turn in 2023. Factors such as an increase in subsidence claims, a surge in payouts for frozen pipes, and the escalating costs of building materials and labour could drive up premiums. Despite the potential for increased costs, the importance of home insurance cannot be overstated.
Key Points:
- The average cost of home insurance was £300 in 2022, but it may rise in 2023 due to various factors.
- Home insurance is essential, especially for homeowners with a mortgage or those renting.
- There are several strategies to keep your home insurance premium down, including improving home security, calculating rebuild costs accurately and valuing belongings correctly.
For many, home insurance isn’t just a good idea – it’s a necessity. If you’re still paying off your mortgage or renting, home, buildings, or contents insurance is often a contractual requirement. Even if you own your home outright, home insurance is still advisable as a form of financial protection.
Strategies to Keep Your Insurance Premium Down
There are several strategies you can employ to keep your insurance premium manageable. Here are some of them, as recommended by By David Joyson, Chief Customer Officer of Homeprotect .
Bolstering Home Security
Recent figures have shown a worrying 6% rise in domestic burglary in the last year. This increase, linked to the cost-of-living crisis, should be a wake-up call for homeowners to boost their home security efforts. Not only can improved security provide peace of mind, but it can also save you money.
| Security Measures | Benefits |
|---|---|
| Updating door locks | Increased security against break-ins |
| Installing security cameras and burglar alarms | Deterrent for potential burglars |
| Using a security app to control lighting and heating remotely | Creates the illusion of an occupied home |
| Installing a gravel pathway | The noise can attract attention, deterring thieves |
Accurate Calculation of Rebuild Costs
When moving into your property, it’s crucial to calculate the rebuild costs accurately. The BCIS Rebuild Calculator can help with homes built with brick or stone walls and tile or slate roofs. For houses made of alternative materials, built before 1850, or listed buildings, a chartered surveyor can provide an accurate quote.
Accurate Valuation of Belongings
Research shows that the average UK home contains around £35,000 worth of goods. It’s essential to accurately price up the cost of replacing your belongings as-new and according to today’s prices before investing in contents insurance.
Joining a Neighbourhood Watch Scheme
With over 2.3 million members in England and Wales, the Neighbourhood Watch scheme is a popular initiative to reduce crime in communities. Some insurers may reduce your home insurance premium if you’re part of such a scheme.
Accurate Occupation Description
Some professions are considered higher risk than others. Ensure your insurance policy has the correct job information and update your insurer if your situation changes.
Insulating Water Pipes
Burst water pipes are a significant and costly issue in the UK, especially during the winter. While insurance may cover water damage, taking preventative measures like insulating pipes could help lower your premium. It can also save considerable inconvenience and damage to your home and belongings.
Registering on the Electoral Roll
Some insurance providers use the electoral roll to confirm your identity when performing credit checks so it is important to be registered on the electoral role to help achieve low home insurance premiums. Being registered on the electoral role can also have other benefits, such as voting and can also have a beneficial impact on your credit score.