Can I save money on home insurance moving house? To know how to save money on home insurance, we first have to understand what home insurance is and what it covers.
Moving to a new home is exciting, but it also comes with various tasks to complete. One crucial aspect of the moving process is ensuring that your home insurance is up to date and adequately covers your new property.
In this comprehensive guide, we will explore how to save money on home insurance when moving house. We’ll delve into understanding home insurance, how to save money on a new policy, tips for reducing existing policy costs, and the importance of updating your insurance when moving house.
Understanding home insurance
Before we dive into the specifics of saving money on home insurance when moving, let’s begin by understanding what home insurance is.
There are usually two types of home insurance; building insurance and contents insurance.
Building insurance: This covers the physical structures of your home, including the roof, walls, windows, and usually permanent fixtures like the bathroom suite. This type of insurance provides protection in case of events such as floods, fires, burst pipes, and other structural damage. It’s essential to note that the coverage of building insurance policies can vary, so it’s crucial to thoroughly review the terms of your policy.
If you have a shared ownership property or a flat, you may have a leasehold property, where the building insurance might be covered by the service charge you pay. However, if you own a freehold property, you will likely need to arrange your own building insurance.
Either way you need to check with the housing association or housing provider to check how the buildings insurance is paid for your shared ownership.
Contents insurance: This on the other hand, covers the belongings and personal possessions within your home. To ensure adequate coverage, it’s important to assess the value of your possessions and insure them accordingly. Contents insurance provides protection against theft, damage, and loss of personal items.
Building and contents insurance combined: One effective way to save money on home insurance is by bundling building and contents insurance into a single policy. This not only streamlines your coverage but can also lead to cost savings by avoiding duplication of coverage.
How to save money on a new home insurance policy
Now that we have a solid understanding of home insurance let’s explore how to save money when purchasing a new home insurance policy, particularly when you’re moving house.
Shop Around:One of the most effective ways to save money on home insurance is to compare quotes from different insurance providers. While your mortgage provider or bank may offer insurance, it’s crucial see what the offer is, but also look at other options. Mortgage providers often receive incentives from insurance companies, which may not necessarily result in the best deal for you. By shopping around, you can find a policy that offers the coverage you need at a more competitive price.
Pay Annually: This is becoming an increasingly common option. If you can afford it, consider paying your home insurance premium annually instead of on a monthly basis. Insurance companies typically offer discounts for annual payments, making it a cost-effective choice in the long run.
Adjust Your Voluntary Excess: Increasing your voluntary excess can help lower your premium. The excess is the amount you agree to pay toward a claim before your insurance coverage kicks in. By opting for a higher voluntary excess, you demonstrate your willingness to cover a larger portion of potential costs, which can result in reduced premiums. However, it’s essential to strike a balance that ensures you can comfortably afford the excess in the event of a claim. You need to do your research to see what you are comfortable with doing.
Comparison Websites: This will come up a lot! Comparison websites can be valuable tools for finding the best home insurance deals. These platforms allow you to input your insurance needs and receive quotes from multiple providers, simplifying the process of comparing policies and prices.
Go Direct: Again, this is an important thing to do as some companies such as Direct Line don’t use comparison websites. So see by going direct to other providers they can offer you better deals.
Look for Discounts: Some insurance providers offer discounts as incentives for choosing their services. Be sure to check if any providers are running promotions or offering rewards for using their services, as this can significantly reduce your overall insurance costs.
How To Save Money On an Existing Home Insurance Policy
If you already have a home insurance policy and want to reduce its cost, there are several strategies you can employ:
Avoid Small Claims on your insurance policy: While insurance is designed to provide financial protection in times of need, making small claims can sometimes result in higher premiums. Obviously, if you have had your home broken into or a major leak then do claim. But, if the damage is minor it may be worth you just paying out to fix so that you do not lose your claims discount. This depends if you can and have money to had to pay for these small claims.
Build Your No Claims Bonus: A no claims bonus is a discount provided by insurance companies to policyholders who have not made any claims during a specific period. The longer you go without making a claim, the higher your no claims bonus becomes, which can lead to substantial premium reductions. You may also be able to protect your no claims bonus. It’s worthwhile checking!
Enhance Home Security: Investing in home security measures, such as a comprehensive security system, burglar alarms, or a camera doorbell, can not only boost your peace of mind but also lead to lower insurance premiums. Insurance companies often offer discounts for homes equipped with robust security features.
Review and Update Your Coverage: When you come to review your existing coverage it is essential to ensure that it aligns with your current needs. Adjusting your policy to match the value of your possessions, the condition of your home, and other relevant factors can help you avoid overpaying for coverage you no longer require.
Switch Insurance Providers: If your home insurance policy is set to auto-renew, take the opportunity to search the market for better deals with other providers. This proactive approach ensures that you aren’t automatically locked into a contract with the same provider, potentially missing out on more cost-effective options.
We have partnered with Quotezone.co.uk to help you save money on your home insurance.
Whatever you decide to do, make sure that you research before you take a policy out and use comparison sites to ensure that you are getting the best deal for you. Check if any providers are offering vouchers for using them and if this would then make the policy cheaper.
If your home insurance is due to auto renew, try searching the market again to see if your price has changed with other providers. This is so that you are not automatically enrolled into a contract with the same provider if you can get the same protection for cheaper elsewhere.
Do I Need To Tell My Insurance Cover If I Am Moving House?
Absolutely. When you’re moving to a new house, it’s crucial to inform your insurance company of the change in your circumstances. They will need to update your policy details to ensure that your coverage remains accurate and applicable to your new location. Failing to notify your insurance company about your move could result in coverage gaps or complications in the event of a claim.
Can Home Insurance Be Transferred To A New Home?
In most cases you should be able to speak to your existing home insurance provider to get them to swap the details over. However, there may be cost implications when doing this. For example, if you are moving to a different postcode or a different type of property. It may alter the cost of home insurance cover. It is worth checking with your current home insurance company.
If there are changes it is worthwhile getting a home insurance quote due to moving house. It may enable you to save money too. We have partnered with Quotezone.co.uk to help you save money on your home insurance.
Can I Save Money On Home Insurance When Moving House?
Possibly! It is worthwhile checking to see if you can. It will depend on where you are moving to and other factors including the type of property you are moving into.
The potential to save money on home insurance when moving house largely depends on several factors. This includes your new location, the type of property you’re moving into, and your insurance provider’s policies. While moving itself may not directly result in cost savings, it presents an opportunity to reassess your insurance needs. It may mean that you find a more affordable policy that aligns with your new circumstances.
Factors that can influence your home insurance costs when moving house include:
Location: Different areas may have varying levels of risk associated with factors like crime rates. These factors can impact your insurance premiums.
Property Type: The type of property you’re moving into, whether it’s a house, apartment, bungalow, or other dwelling, can affect your insurance rates. Additionally, the age and condition of the property may play a role.
Security Features: Installing security measures such as alarm systems, surveillance cameras, and reinforced doors and windows can lead to lower insurance premiums.
Policy Adjustments: Reassessing and modifying your coverage to match your new home’s value and contents can help you save money.
Insurance Provider: Different insurance companies offer varying rates and discounts. Exploring different providers and their offerings can potentially result in cost savings.
Ultimately, while moving house may not guarantee immediate savings on home insurance, it offers an opportunity to optimise your coverage and potentially find a policy that better suits your needs and budget in your new living situation.
What Other Things Do You Need To Update When Moving?
When moving to a new home, updating your home insurance policy is just one of many important tasks. Here are some other essential updates you may need to address:
Car Insurance: If you’re moving to a new area, your car insurance rates may change based on several factors including crime rates and where you are parking your car. It’s essential to inform your car insurance provider of your new address and make any necessary adjustments to your policy.
Broadband and Utilities: Contact your internet service provider and utility companies to schedule the transfer or setup of services at your new home. Be sure to compare providers in your new area to ensure you’re getting the best deals.
Royal Mail Change Of Address: Update your address with Royal Mail to ensure that your mail is goes to your new home. You can also set up mail forwarding. This is a paid service offered by Royal Mail, but well worth considering.
Driver’s License and Vehicle Registration: You will need to update your driver’s license and vehicle registration details.
Doctor and Dentist: Inform your doctor and dentist of your new address and update your contact information.
Take a look at our free moving house checklist for more details.
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