Insurance and Improvements

Getting the best value out of any financial product is more important in this current 'age of austerity' than ever before. Whether that's ensuring that you squeeze the last drop of interest from a bank account, or shave the most pennies possible from your home insurance policy, it's important to save cash.

The British are a nation that love home improvement, probably more so than any other country, and with tight purse strings across the nation, DIY stores are doing a booming trade. If you're living in a house where you think you could stay for a while, it's worth focussing your DIY efforts on making savings wherever you possibly can.

The first thing to consider, quite simply, is how home insurance costs are worked out. Very simply they're based on the value of what you're ensuring (so either the building itself or the value of its contents) verses the likelihood of you making a claim, as determined primarily by environmental factors and safety factors.

Obviously, it's pretty difficult to control the weather where you live, though you can proof your house accordingly. Good insulation can save money, as it reduces the likelihood of frozen pipes, and making sure your roof is in good condition and clear of moss can also save a few pennies.

However, the best way of saving money is to make your house singularly unappealing to thieves. A good burglar alarm system can pay for itself in a few years, strong window and door locks to industry specification can do the same, and there are even things like the strength of the door, and whether you have a security light which can also make a difference.

The key thing to consider is that there is indeed an industry specification for just about every type of safety equipment. If you're going to invest in something with the aim of saving money on your insurance and making your home more secure, it's good to start by buying something that is actually going to be accepted by the insurance company. Anyone who offers insurance, from specialist insurers to high street banks like Santander* will be able to tell you what matches the industry specification and what doesn't

The final thing to consider with home improvements internally is that they will affect the value of your home and so may also affect the cost of your insurance. If you get something new fitted, make sure that it's noted on the insurance policy so that if something bad does happen, you'll be covered financially. The closer the policy is tailored to your exact specifications, the better value for money it will be.

*Visit the Santander website for full details of the home insurance policies.