There are a wide variety of reasons as to why your home insurance premium can fluctuate from one year to the next. If you are insuring your building only, the premium is calculated based on the cost it would take to rebuild a home if it was completely destroyed.
Similarly, if you are insuring your contents, your premium is based on the items which you are insuring, and the value placed on them. If you are insuring higher valued items, such as engagement rings or laptops, this may cause your premium to change.
Does making a claim impact my home insurance premium?
When it comes time to renew your home insurance policy after you have previously made a claim you may see a slight increase in your premium. This is mainly because you will have to reset your no claims bonus and therefore cannot avail of this discount until it grows again.
However, you are able to to build up your no claims bonus once again, receiving 10% off after one year, 15% off after two years, until you reach 30% off once again after three years.
How can I reduce my home insurance premium?
Your no claims bonus will gradually reduce your premium, giving you 10% off after one year, 15% off after two years, until you reach 30% off once again after three years. It is good practice to review your home insurance upon each renewal to make sure you are getting the most accurate price for your home insurance needs.
