Reduce the cost of your property insurance

Reduce the cost of your property insurance by Paul Green

If you have a mortgage, your lender will usually insist you have buildings property insurance. That reduces their risk of you having a mortgage secured on a pile of smouldering bricks where your house used to be.

And whether you own your home or not, it's strongly suggested you have contents insurance.

Just like you can reduce the cost of your car insurance by taking a few simple steps, you can do the same with your property insurance.

Think about the business model insurance companies use. They guarantee to repair your home and replace items stolen or destroyed, and know that only one or two out of 1,000 households will ever claim. So they take the average cost of a claim and effectively spread the expense of that among a number of people. Add on a bit of profit and the hassle of running a property insurance company and that's essentially it.

So what you are aiming to do to is demonstrate to your insurance company that you have removed some of the risk involved in guaranteeing your home.

There are some things you can affect and some you can't. The most obvious risk you can reduce is crime. Get approved locks on all of your doors and windows and fit an approved alarm system. This is worth doing even if you live in an area with low crime levels. Some property insurance companies will reduce your premium if you fit certain approved alarms and locks, so check with them first, especially if you are undertaking a lot of property development work.

Most police forces offer free crime prevention advice, and may even send someone round to your home to offer practical tips. They could spot really obvious things that you wouldn't think of - for example leaving a ladder unchained at the side of your house is making it easier for a burglar to get in.

Put yourself in the mind of a burglar when you look at your house. They are most likely to be opportunists who want to get in and out quickly. If they have to break a window, risk setting off an alarm or tackle a barking dog, it reduces the attractiveness of breaking into your home� there are easier targets nearby.

Another risk to your house is from fire. Make sure you have working smoke detectors, don't leave candles or anything with a naked flame unmonitored, and force smokers outside. If you have an open fire get a proper guard and move flammable items like rugs away. Get the chimney swept at least once a year, or you risk it catching alight.

While it's rare to find a property insurance company that will reduce your premium if you take these steps, they are sensible tips to follow anyway.

Now onto something that's been in the news over the last few months: flooding.

The summer floods caused billions of pounds worth of damage to thousands of properties, many of them people's homes. You can check if you live in an area that's prone to flooding by contacting the Environment Agency. They produce flood maps that will show you the risk to your property.

There are also flood risk warnings that you can subscribe to, so at least you will be warned in the event your home is at risk.

Even if you do live near water or are in a flood plain, it doesn't necessarily mean you will be flooded. Property insurance companies will judge the risk by the history of flooding in the area and the effects of any new flood defences.



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