The Intermediary – June 2025 - Flipbook - Page 59
P RO T E C T I O N
Opinion
Why home
insurance can help
ease ‘Awful April’
A
pril 2025 has been
dubbed ‘Awful
April’, as millions
of households found
themselves facing
rising costs. From
increased Council Tax and soaring
energy bills to steeper water bills
and broadband hikes, the average
household faced hundreds of pounds
in additional monthly expenses.
As these increases strain budgets,
one oen-overlooked area where
clients have an opportunity to save is
home insurance.
While it might not be the first
expense that comes to mind when
trying to cut costs, reducing home
insurance can be a smart and
relatively easy way to claw back some
financial control.
With inflation still affecting many
sectors, the cumulative effect of even
modest savings in areas like insurance
can help buffer the blow of more
essential costs.
So, there are several effective
strategies homeowners can use to
reduce the cost of home insurance.
Get an advice-led service
By using a broker such as Safe&Secure,
as many as 30 high quality products
can be compared in a short phone
conversation, while ensuring the
home insurance fits the needs of
the consumer.
Increase the excess
Excess is the amount agreed to
pay towards a claim. Opting for a
higher excess may result in a lower
premium, as long as the amount is
affordable should there be a need to
make a claim.
STEPHANIE DUNKLEY
is development director
at Safe&Secure
Bundle buildings and contents
If a client is paying for separate
buildings and contents insurance
policies, they should consider
combining them. Many insurers offer
discounts when both types of cover are
in one policy.
Improve home security
A home fied with an alarm system,
CCTV, smart locks, or even motionsensor lighting is less aractive to
burglars. Some insurance providers
offer discounts for enhanced security
features, as they reduce the likelihood
of a claim being made.
Pay annually, not monthly
Paying monthly might be easier to
budget, but insurers oen charge
interest for this convenience. If a
consumer can afford to pay annually,
it can lead to savings of approximately
a month’s worth of insurance in
some instances.
Avoid over-insuring
Ensure that a client’s contents cover
reflects what they actually own.
Many people estimate too high,
which means paying for coverage
they don’t need. Likewise, ensure
their buildings insurance reflects the
cost of rebuilding the home, not its
market value.
The impact of making these changes
can be significant. For instance, one
Safe&Secure customer saved £210
on their renewal premium – which
had jumped by 54% – simply by
seing aside time to talk with one of
our home insurance advisers on the
phone. That’s more than enough to
offset the rise in broadband, water,
and even a chunk of the energy
bill increases.
Even smaller monthly savings of
£15 to £20 from switching providers
or adjusting your policy can add
up to £180 to £240 a year. That’s
cash that can be redirected to cover
energy hikes, food inflation, or even
transport costs.
In the context of ‘Awful April’, every
penny counts. The Office for National
Statistics (ONS) recently reported that
65% of UK households have noticed
a significant rise in living costs since
January 2025.
While cuing down on
discretionary spending – like
entertainment, dining out, or the
hairdressers – is the usual go-to
solution, savings on non-discretionary
items like home insurance offer longterm financial relief.
Moreover, proactively managing
these expenses sets a precedent for
smarter financial planning. As
more households face economic
uncertainty, taking control of fixed
costs like insurance becomes not just a
money-saving tactic, but a vital part of
financial resilience.
April may have been financially
brutal, but there are steps
homeowners can take to fight back.
Reassessing home insurance and
finding ways to lower the premium
could be a crucial way to help mitigate
the broader cost-of-living pressures.
By dedicating time to review a
policy and make few simple changes,
your clients could walk away with
real savings. ●
June 2025 | The Intermediary
59
