Home insurance costs are one of the many areas that people are looking to make cutbacks in the current economic climate. With household budgets stretched to the limit for many and prospects for wage growth limited, insurance is one of the outgoings that people will be looking to reduce.
For the over-50s, who are either planning for or are in retirement, managing outgoings is even more important. So how can older citizens keep their insurance costs in check? There are many different ways reductions can be made, and this guide outlines a few basic tips.
Many people assume that their renewal quote will be their best option in terms of price, feeling that their loyalty to a provider will be rewarded. However, this is a misconception; there is no reason why the cheapest provider available would necessarily remain so a year later. Shopping around is advisable every time the insurance comes up for renewal, and particular attention should be paid to specialists. Policies from Castle Cover, for example, offer reduced rates by only insuring people over 50.
Get the right balance
With any insurance policy, there is a balance to be found between the price of the premium and the excess, or deductible. This latter figure is the amount the individual pays towards the cost of a claim, and higher excesses usually mean lower premiums. For those living in a low-crime area, agreeing a higher excess may be a good way to reduce monthly outgoings.
Obviously it’s not always that easy, but the cheapest way to make long-term savings with insurance is not to make claims. So if the monetary loss from the incident is only slightly more than the excess, it is sensible to avoid making a claim which will push the premiums up.
Secure your property
It stands to reason that the more secure a property is, the less likely it is to be burgled, but beefing up home security also gives an insurer more confidence to offer a lower premium. Simple measures such as the addition of a burglar alarm, double-glazed windows and security lighting can lead to lower premiums, as well as safer possessions. Security is very much about making a property less attractive to thieves, so homeowners should think about how they would get into the property if they lost their keys and secure these access points. Trimming back any plants and trees which could provide cover for burglars looking to break in is also a good idea.