You can lower your insurance premiums if you increase the policy excess – the part of a claim that you pay yourself. You pay less, because you have less insurance. You should never buy more insurance than you need. That’s why raising the excess is perfectly sensible, and often the best decision – if you can easily afford to pay it. However, many who make a claim after increasing their policy excess have to borrow to pay the excess.
Before choosing a high excess, think about what you can afford and how it will make you feel if you have to pay the excess.
Not informing your insurer after extensions and conversions
If you convert your attic, make a new garage, create an extra bathroom, or otherwise extend and improve your home, you probably have to let your insurer know. Many people who made such improvements didn’t do so. If you have buildings insurance, you need to notify your home insurer before making the changes. If you don’t, you could have trouble claiming the full amount in the event that something goes wrong. At the very least, you may give them a way they can try to wiggle out of paying any claims.
You haven’t got an important insurance product
You, like most people, probably haven’t taken out a very worthwhile insurance, namely income protection insurance. Please don’t confuse this with payment protection insurance (PPI). The name is very similar, but the insurance I’m talking about is different and far superior.
Your total future income is probably even more important and more valuable than your home. (eg. €20,000 loss of income over 30yrs = €600,000)
Income protection insurance will pay you an income for as long as you’re unable to work or until your chosen retirement age. That could even be decades.Tax relief is also available on the premium at your marginal rate to up to 10% of you total income
If you have family depending on your income, you should research income protection insurance