Tips For Buying Building and Contents Cover

Household insurance premiums are set by various factors beyond your control, including your postcode. Your area may suffer high crime, for instance, pushing up your premium even if your home has Fort Knox-style security. Despite this there are a number of ways to keep the costs down.

• Household insurance offered through a mortgage lender can be expensive. Lenders get a big commission. Get alternative quotes.
• Mortgage lenders require borrowers to have buildings insurance but often let you choose your own insurer if you ask. They may charge £25 or so if you don't use their insurance, but it's often worth paying to get a lower premium. Some insurers will pay this fee for you if you switch to them.
• Buying buildings and contents from the same insurer should ensure there are no gaps in your cover and you will have to deal with only one insurer if you claim. But an insurer that's competitive on buildings premiums may not be so competitive on contents premiums - or the other way round.
• An excess is the amount of any claim (loss) you must pay yourself. Most policies have compulsory excesses - and it's worth comparing these - but also let you choose voluntary excesses. You get a reduced premium in exchange for a higher voluntary excess.
• Get several quotes before renewing your policies. In the financial services world, loyalty is rarely rewarded and is often penalized. If you do find a cheaper deal than your existing insurer, tell your existing insurer what you've been quoted, if you would rather stay with the company. It may be able to come up with an improved premium.
• Treat discounts cautiously, for example those marketed at people in particular trades and professions, of a certain age, or in a neighbourhood watch scheme. Compare a discounted premium with other, non-discounted premiums.
• A cheaper policy could have unwelcome gaps in cover. Check the proposed cover carefully. And what's an insurer like when disaster strikes? Keep an ear out for the experiences of people who have claimed. Are some companies worth considering, others to be avoided?
• Check restrictions and exclusions carefully for any that would affect you particularly. For instance, many insurers reserve the right to replace lost items from specified suppliers (see Tips for making a successful claim), and in some cases this extends to jewellery. If you own valuable antique jewellery, or prefer an unusual style, you may not want to replace it from a high-street chain.