Well, it’s that time again — your home insurance renewal notice has just landed in your inbox. You crack it open, assuming that it will be the same cost as last year, only to find a number that makes your heart skip a beat…and not in a good way.
Insurers love to nudge those premiums up, banking on the fact that most people will just click “auto-renew”. But here’s a little secret: if you play your cards right, you can actually end up getting better coverage for less money.
The trick? You’ve got to treat your renewal like you would booking a holiday — shop around, compare, and don’t settle for the first option that pops up on your screen. Here’s how to finesse your home insurance renewal and get a better deal on next year’s policy.
Understand Your Coverage Needs (Don’t Just Copy-Paste Last Year’s Policy)
Before you even consider hitting “renew,” take a beat to rethink what you really need. Home and contents insurance isn’t a set-and-forget deal, and your coverage needs can shift from year to year.
Did you remodel your kitchen? Upgrade your furniture? Buy a new TV? Each of these things impacts your policy. Or, maybe you’ve cleaned up and disposed of half your possessions — as a result, you might be over-insured and paying too much.
Getting into the habit of checking your policy details will help come renewal time. Review the level of cover, what’s covered and if it still reflects your current circumstances.
That small step could spare you from being underinsured or paying too much for coverage you don’t really need.
Don’t Accept the First Offer – Haggle Like a Pro
Here’s a secret: insurance companies don’t expect you to take their first renewal offer at face value. They understand that most people won’t question the price, which is exactly how and why those increases sneak in.
The solution? Good old haggling. Call your insurer and say something like:
“I’m a loyal customer, but I’ve got lower quotes from elsewhere. Can you match or beat them?”
The majority of the time, they’ll shave a little something off just to keep your business. But if they don’t move, don’t be afraid to look elsewhere.
You don’t owe them anything — your loyalty should only extend as far as their willingness to give you a fair deal.
Shop Around Like You’re Hunting for a Bargain Holiday
Just like you wouldn’t hit “book” on the first hotel that you find online, don’t renew your insurance without shopping around.
Comparison sites make it stupidly simple to see what other insurers are quoting and you might be surprised at how much prices can differ for the same level of cover.
Even if you like your current provider, having competing quotes in hand gives you leverage when negotiating. It’s like telling the hotel you’ll look elsewhere unless they include free breakfast — except, in this instance, you’re seeking a less expensive premium with superior inclusions.
Get into the habit of being organised each year, and you’ll seldom (if ever) end up paying too much.
Pay Annually, Not Monthly (If You Can Swing It)
Paying for your premium annually can be a big hit to the bank balance, we know, but believe us, it’s worth it. Most insurers also hit you with additional fees if you choose to pay monthly. In other words, you’re paying interest on your own insurance.
If you can swing it, pay annually instead. Not only will you often get a discount, but you won’t be paying those sneaky monthly admin fees that really stack up over time.
If you can’t pay upfront, check whether your insurer provides an interest-free monthly option. Some do, but you need to ask for it.
Check For Discounts You Might Be Missing Out On
Many insurers offer discounts — but won’t always mention them. Common ones include:
- Multi-policy discounts — If your home and car insurance are provided by the same insurer, you may be able to get a better deal by packaging them together.
- Security discounts — If you have an alarm system, deadbolts, or even just a scary-looking dog, you may qualify for a lower rate.
- No-claims bonus – If you’ve gone years without a claim, you may be eligible for a discount — it’s worth asking your insurer.
- Loyalty discounts — Some providers will give a discount to long-term customers, but you typically have to call and ask.
Don’t assume your insurer is offering you the best price. Always ask what discounts are available and whether you qualify for one. There’s nothing to lose!
Increase Your Excess (But Be Smart About It)
Your excess is the sum you have to pay out of your own pocket when you file a claim. As a rule, the higher your excess, the lower your premium.
Increasing your excess can be an easy way to lower the price of your insurance policy — just make sure that it’s still an amount that your budget can comfortably handle if you have to make a claim.
For example, increasing your excess from $500 to $1,000 could save you a decent amount on your premium, but if an emergency hits, can you spare that extra $500 in a pinch?
If the answer is yes, it could be a smart move. If not, stick to what you can realistically handle.
Read The Fine Print
Last but not least, no one enjoys reading the fine print (although you really should) but this is where insurers like to sneak in little details that could cost you down the line.
Be sure to check for:
- Exclusions — Are there any events or circumstances not covered?
- Claims caps — Some policies limit how much will be paid out for valuables such as jewellery, electronics or collectibles.
- Terms changes — Insurers may modify policies at renewal. That perk that you enjoyed last year may not make the cut this time around.
Clarity about what you’re agreeing to can save you from nasty surprises down the line when you actually need to file a claim.
Be the Boss of Your Policy
Your home insurance renewal doesn’t need to be a “set and forget” affair. With a bit of effort, you can save a solid amount of cash while making sure you’re properly covered.
Treat it like travel planning — do your research, compare offers and don’t accept the first offer you receive. Whether it’s haggling for a better deal, upping your excess or cashing in on discounts, these small adjustments can make a significant impact.
At the end of the day, the goal is simple: protect your home and your wallet. Now go forth and secure that sweet deal!
