The cost of living

The cost of living in 2023 continues to affect UK homeowners, and as a result you may be looking for ways to reduce your living expenses and outgoings.

If you own or rent a home, one of the costs you may be reviewing is your home insurance.

Home insurance premiums are increasing this year, and this is not helped by inflationary pressure. An insurer will set a premium base on a total sum insured and they will index-link the buildings and contents sums insured. We’re seeing index-linking on buildings reaching nearly 20 percent and contents index-linking 15 percent before any insurer-rate increases, so expect 10 percent + premium increases in 2023.

If you’re looking at a cheaper home insurance policy, do check the cover and understand what you are buying. Your alternative quote may well be a substantial drop in cover, even if your sums insured are the same.

Don’t be tempted to reduce your sums insured to save some premium. There’s a chance that your insurer would apply the average clause  in the event of a claim or worst still, decline the claim completely and cancel your policy if you’ve deliberately underinsured.

Ultimately, your property is likely to be your biggest asset, as well as a home to you and your family. It’s therefore vital that it is protected by a good insurance policy. And whilst we cannot help you reduce your bills, there are smart ways to reduce your home insurance premium.

Check out our advice below.