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How to save money on your home insurance

From paying annually to increasing your excess, there are a few things you can do to reduce the cost of home insurance.

Here are 6 ways you could save money on your home cover.

1. Compare home insurance policies

Every policy is different so it can help to shop around to find the best deal. Keep in mind – value for money isn’t just about price. You need to make sure you have enough cover for your needs

It’s also worth considering any charges. Is there a fee for making changes to a policy? Many insurance policies, including HSBC Home Insurance, allow you to adjust your cover to suit your needs, free of charge – but not all do. 

How an insurance provider processes claims can also make a difference. For example, they can replace broken appliances for new, more energy-efficient models – which can not only help the environment, but also save you money in the long term.  

With so many home insurance products on the market, making the right decision can be difficult. To help you, Defaqto has developed an insurance comparison tool, so you can compare HSBC buildings and contents insurance with other providers.

2. Combine buildings and contents cover

You can buy buildings and contents cover separately, or as a joint policy from one insurance company. 

Homeowners are more likely to need both buildings and contents cover. You can often save money by taking these out as a joint policy compared to having separate policies. 

If you’re a tenant, the landlord you’re renting from is responsible for having buildings insurance. In this case, you’d only need to take out contents cover to protect your belongings.

3. Pay for your insurance annually

Home insurance can be paid either once a year, or in monthly instalments. 

Many people choose to pay monthly to break the cost down into manageable payments. However, some insurers will charge for this. Paying annually for your policy, if you can afford to, could be the cheapest way to do it.

4. Increase your insurance excess

If you need to make a claim, you may have to pay some money towards the overall cost. This is known as the insurance excess

There are two types of excess:

  • compulsory excess (the amount set by the insurer)

  • voluntary excess (the amount you can choose to pay)

Adding a voluntary excess could save you money by lowering the cost of your insurance premium – the amount of money you pay for an insurance policy. This is because the insurer won’t have to pay out as much in the event of a claim. 

If you do decide to increase your voluntary excess – you’ll need to pay this (on top of the compulsory excess) if you ever needed to make a claim. So, make sure it’s an amount you feel comfortable paying.  

Explore: What is insurance excess and can it save you money?

5. Build an emergency fund

An emergency fund is money you save and put aside to cover an unexpected expense, for example. Having savings to fall back on could help you pay for smaller repairs, and reduce the need to borrow money or claim on your insurance. 

Find out how quickly you could build up your emergency fund with our emergency fund calculator

6. Maintain and protect your home

Maintaining and protecting your property is often required for your home insurance to be valid. It can also reduce the chances of having to make a claim on your home insurance – and save you money in the long run. 

Simple measures can improve the safety and security of your home. For example, you could:

  • install and test smoke alarms

  • inspect and service items to minimise wear and tear

  • insulate your pipes and tank to prevent frozen and burst pipes

  • install locks, an alarm or motion sensitive lights to deter thieves

But remember, accidents can and do happen. That’s why it’s important to have enough home insurance in place to protect the things you’ve worked so hard for. 

HSBC Home Insurance is provided by Aviva Insurance Limited. Exclusions and terms and conditions apply.