How to save when insuring your home

 Vary your excess

If you make a claim on your home insurance policy, your insurance company makes a deduction from the total cost of the claim without paying out the full amount. This deduction is called an ‘excess’. There will generally be a small compulsory excess to pay each time you make a claim (so make sure you read your policy thoroughly) however you can vary the excess you choose to pay voluntarily, which in turn will vary the amount of your premiums (the total cost). So if you pay more toward your excess in advance, your premiums will cost less overall.

Combine policies

Like so many other service providers, insurance companies want your business. If you bundle your policies by combining your car insurance with your home and contents insurance, you can save big bucks. If you stay with the same company for years, your loyalty will also be rewarded, so don’t hesitate to ask about any special discounts for long-time customers. A quick glance at the NRMA’s website, for example, shows that they offer the following discounts:

• no claim bonus
• linked policy discount
• multi-policy discount
• years of insurance discount

Just don’t get sucked into paying for optional extras you don’t or won’t need. Another tip here is to pay yearly rather than monthly, if you can afford it: annual premiums are much better value for money.

Improve safety and security

This is one of the best and easiest ways to bring down costs. Though it can involve a bit of outlay to begin with, improving your home security is, like insurance itself, an investment that will save you money in the long term. First, consider installing an alarm system; many insurance companies offer approved systems, but – as always – it pays to do your research and shop around. They may only approve certain types of systems, or only offer more expensive systems themselves. Get new locks for your doors/windows (especially if you have just moved in: it’s always a good idea to change the locks) and find out from your insurer whether they have a preferred type of lock (for example, deadbolts or five-lever mortice locks).

There are numerous websites where you can compare policies from different insurers (sometimes for a small fee), so shop around if you haven’t already got a policy.  And remember, although you may never need to claim on your insurance, you’d be kicking yourself if you did need it, but didn’t have it!