Buildings insurance - Cutting the cost

It is a false economy to insure your home for less than the rebuilding cost but you can cut costs in other ways:
· Change your insurer - It may seem obvious, but you do not have to stay with the same insurer just because you are living in the same property. Unless you are tied into an insurance policy because of a special mortgage package, you can change your insurer as often as you like – although it makes most sense to review your policy annually when it comes up for renewal.
· Pay more towards each claim - Most building policies have a ‘compulsory excess’ (the amount you have to pay towards any claims you make). If you agree to pay more, (called a ‘voluntary excess’), you should get a reduction in your premium. Note that subsidence claims usually have their own excess.
· Avoid ‘all-risks’ policies - All policies cover you against ‘specific perils’ (those listed above under ‘What is covered’), which are generally things over which you have no control, such as storm damage or damage caused by fire or theft. ‘All risks’ cover means that you can also claim for accidental damage (such as putting your foot through the ceiling), but since there is a greater chance that you will make a claim, ‘all risks’ cover pushes the price up.
· Check for discounts - Some insurers offer discounts to certain groups of people – for example, people over 50, teetotallers, or people in certain professions or trade unions. You may get a discount for measures you take to make your home more secure, although this is more common with contents insurance.
· Stay loyal - Some insurers will reward loyalty and/or a clean claims record with a reduction in your premium. However, you should compare quotes from other insurers to make sure that the loyalty bonus or no-claims discount is really worth having.
· Haggle - You may not get much joy from a direct insurer, but intermediaries may be open to negotiation on price, especially if they suspect that they might be about to lose your custom; unless, of course, you are a serial claimer in which case they may be glad to see the back of you.