One of the major factors in home insurance premiums is the claims record, with most policies giving a no claims discount or loading for claims. Both methods mean that a claim or claims affect premiums, so having a claims free history over the last 3 or 5 years is the best defence against rising premiums.

Making a claim is part and parcel of home insurance, the reason why people insure is to protect their property and possessions, but when claiming for a small amount it could be advantageous to see do some calculations first. The cost of the claim, verses the combination of the policy excess to be deducted from the settlement and the potential loss of no claims discount. Afterall the latter is important, as it could take 3 years of claim free home insurance to work your way up to a maximum no claims discount again. Therefore an allowance for a higher premium should be factored in for future years, not just at the next renewal date.

A number of small claims could also have a disastrous effect, going beyond premium increases. An insurer might impose a higher excess, restrict the cover especially if claims are made resulting from the same cause of damage or loss. In certain circumstances an insurer might decline cover, which then makes it difficult to obtain insurance elsewhere, as having home insurance declined or cancelled by an insurer is a material fact which must be disclosed to other cover providers.

Bottom line its a policyholders right to seek indemnity under the terms of a home insurance policy, when there is insured damage or loss, but sometimes consideration is needed before claiming for small amounts as to whether you’d be worse off.

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Modern policies usually come with ‘new for old’ settlement as standard for contents and personal possessions, with no deduction for wear and tear and depreciation. The only exception being clothing and linen, which generally have a short life span. Great for the insuring public and beneficial for insurers, who don’t want to waste time and resources haggling over claim settlements.

To make the ‘new for old’ agreement between insurers and policyholders a fair one, the contents should be insured for the new replacement cost. Therefore when you are calculating a sum insured that is right for you, think of the new price for your contents. For guidance with your home contents sum insured try the home contents calculator

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This summer has been a wash out as far as the weather is concerned. Rain, rain and yet more rain, causing localised flooding and disaster for all concerned. However with rain comes wet ground, reducing the need for trees and shrubs to extend their roots in search of moisture, which should result in fewer incidents of subsidence damage. Tree and shrub roots are a major cause of subsidence, especially in shrinkable soil areas.

We all enjoy a sunny day, but prolonged spells of hot weather results in a rise in subsidence damage. The summer of 2012 might be a low point for sun lovers, but it may be a season with fewer subsidence damage than usual. Subsidence is costly for insurers, so fewer claims may mean less of a squeeze on home insurance premiums, helping to lessen the effects as insurers compare premiums with claim payments.

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Whenever possible we all like to reduce costs and make savings, so here’s a few handy tips to potentially save money on the cost of Home Insurance.

Think about including a voluntary excess, which comes with a discount. Take into consideration that the voluntary excess will be in addition to the compulsory excess, so be aware of the total excess.

Ensure that your sums insured are adequate for current full reinstatement on Buildings and the cost of new replacement on Contents, but don’t over insure, as most insurers charge a rate per thousand or part.

Consider installing an insurance approved alarm, which to qualify for a discount is likely to be an installed and maintained alarm by a National Security Inspectorate (NSI) member. Before proceeding you should weigh up the cost of installation and maintenance, against the potential insurance discount.

Check to see if your home is within an active Neighbourhood Watch area. Insurers often give a discount, especially off Contents Insurance premiums.

Pay in full, rather than opting for instalments, as there is usually a charge for monthly payments.

Try not to make any unnecessary claims, in particular when the settlement is on the low side. In addition to an excess being deducted, the premium is likely to rise at the next renewal date as a result of the claim. Home insurances usually have a no claims discount, or a loading is applied when a claim is made.

Last but most certainly not least contact an Insurance Broker, preferably us, for a competitive quote. We deal with quality insurers who only deal with select supporting brokers, so you won’t be able to obtain the same quote direct or via a price comparison site.

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