# How to cut home and contents insurance premiums

> Insurance · Last updated 4 July 2026

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## Quick answer

Shop around every renewal, increase security (locks, alarms), join a Neighbourhood Watch scheme where insurers offer discounts, avoid accidental damage cover you do not need, and set accurate sums insured — over-insuring wastes money, under-insuring voids claims.

Home insurance renewal is a annual comparison task. Loyalty rarely pays even after FCA pricing reforms — different insurers weight flood risk, occupation and claims history differently.

## Key facts

- Compare buildings and contents separately and as a bundle — either can be cheaper
- No-claims discounts build over years — weigh claim value against future premium rises
- Working from home may need business equipment cover — standard contents limits may exclude it
- Listing rebuild value too low leads to 'average clause' reductions on claims

## Before you renew

Update sums insured for extensions, new kitchens and higher-value contents. Recalculate rebuild costs every few years — construction inflation moves faster than CPI.

## Legitimate premium cuts

Install approved locks and smoke alarms, raise voluntary excess modestly, and pay annually. Avoid duplicating cover already included in premium bank accounts.

## Frequently asked questions

### Should I use a broker?

Useful for non-standard risks — flood, subsidence history, thatched roofs. Standard homes are fine on comparison sites.

## Primary source

https://www.abi.org.uk/products-and-issues/topics-and-issues/home-insurance/

## Related

- [Home insurance explained](https://moneyguide.org.uk/insurance/home-insurance-explained/)
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Independent UK money guidance from [Money Guide](https://moneyguide.org.uk). Information only — not regulated financial advice.