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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Insurers are usually good at keeping up with changes in lifestyles and are willing in adapt home insurance accordingly, provided the change is in keeping with a domestic policy and the risk isn’t significantly increased. Most standard policies now come with automatic cover for office contents owned or the legal responsibility of the policyholder. Limits generally apply, maybe £5,000 or 10% of the overall home contents sum insured, whichever is the lessor. Cover applies for own use and in connection with the policyholder’s business or occupation, although it is worth mentioning that any liabilities arising from business activities would be excluded. Office contents more specifically insured elsewhere, such as a business office policy, would also be excluded. If you need a wider scope of cover then a homeworkers insurance may be suitable, especially if you run your own business from home. Homeworkers policies are a combination of home and office insurance, where you can insure a full range of office equipment at home, cover laptops, cameras and mobile phones whilst away on business, employers and public liability, business interruption and business money. For details try searching online for homeworkers insurance or contact an insurance broker for advice.

As always the devil is in the detail. The policy wording relating to your home insurance will tell you if there is cover and if so the limits, terms, conditions and exclusions.

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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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