DIY Supermarket

One of the easiest ways to reduce your home insurance premiums is to increase the excess amount of the policy.  A voluntary excess is a choice you may be able to opt for when you compare home insurance policies which means that, should you claim, you will receive the value of your loss minus the excess amount.  For example, if you have a £100 excess and your garden furniture is stolen you will receive the money you will need to replace the furniture – say £300 – minus the excess.  In other words, you will only get £200 when you actually need £300 to replace your garden furniture.

If you live in a neighbourhood that is relatively crime free a £100 excess might make sense, but many home insurance policies offer the option to increase the excess amount to £500 or more.  If your excess is £500, and your garden furniture is stolen, you will receive nothing from your insurer and you will have to fork out £300 for new furniture.  If a burglar enters your home and steals electronics such as laptops and TVs to the value of £800 you will only receive £300 from your insurer – nowhere near enough to replace those essential gadgets.

A £500 excess might save you up to £100 or more on your annual premium, but you should carefully consider whether you are willing to take the risk to not be insured for the first £500 of any claim.  If laying out £500 for essential items is simply unaffordable to you it may be best to avoid opting for too high a voluntary excess amount when you compare home insurance.