Homeowners Insurance

Homeowners insurance is not something that any householder should be without. Unfortunately, it is one of those costs that is easily overlooked when you start on the housing ladder, but it should be top of the agenda.

There will will of course be different policies to choose from. What you must make sure that you do is to read the small print and fully understand what you get for your money, and what you do not. For example, you should check the level of cover (especially where buildings are concerned) and ensure that you have value appreciation built in. If you take out insurance now and then then claim in ten years without this kind of protection, you could find that your cover might not give you what you need.

The question of excess will also come up. You will be expected to pay the first part of any claim yourself. How much the excess is will depend largely on how big a premium you are willing to pay. It's a trade off. The larger the premium paid, the lower the excess.

As is usually the case, shopping around can often dig up surprisingly good deals. So take your time and investigate everything thoroughly.

There are ways to reduce the cost of your homeowners insurance too.

Many insurers give discounts for group accounts. So for example, if you have motor insurance with one insurer, ask them first if they will give you a discount for taking out other insurance as well. Many will not offer the discount unless you make a point of asking. It won't hurt, will it?

If you have added extra security to your home, like burglar alarms or window and door security, please make sure you mention this when filling out application forms. Discounts are often applied to homes where the risk has been reduced by careful owners.

If you are members of any organisations, check and see if they have affiliate discounts for members. Many do, and it is easy to overlook. The key is to give yourself time to investigate properly, and not leave it all to the last minute when the pressure of having to ensure means that you might not get the best deal for yourself.