Amidst all the talk in recent months of a ‘Credit Crunch’, analysts have noticed the development of a worrying trend in the insurance market. According to a report from the influential website financialadvice.co.uk, some homeowners are now deciding to forego insurance cover in an attempt to cut back on their outgoings.

 

While understandable in the current financial climate, the news has been greeted with concern, and experts are urging homeowners to consider the long-term risks of cutting back for short-term savings: “When there is a break-in or some kind of accident in the home, this is when the insurance would have kicked in, but for some the support has gone”. This risk appears an even more dangerous one to take in light of the news this week of a letter leaked from the Home Office, which predicted that crime – including property crime – is set to rise because of the economic downturn.

 

 

However, it is possible to cut down on expensive premiums without cutting out home insurance cover altogether. In 2007, Jonathan French of the Association of British Insurers (ABI) outlined a number of proactive steps which could be taken in order to lower home insurance premiums, even in high-risk postcode areas:

 

“"People can do things like ensure they have good quality locks on their doors and windows, they can ensure that when they leave the property unoccupied they can ensure that all the doors and windows are locked and secured”

 

 

Mr French also advised consumers that “by shopping around within the home insurance market, which is very competitive, they can find really good deals out there." This process has been made increasingly easy in recent years with the arrival of a raft of dedicated insurance comparison sites designed to help consumers find the best possible policies for their money.

 

There are also a number of specialist insurers, offering policies designed for particular consumer demographics, which may be able to further cut down insurance costs. Endsleigh, for example, have long experience in student policies, while RIAS offer cheaper home insurance for over 50s.

 

 

So, whatever your situation, there may be many ways in which you can reduce your premiums - and so ease some of the pressure of the ‘Crunch’ – without leaving your home and possessions at risk, and potentially paying dearly in the long-term.