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