TIP 4: Shop around for home insurance

Shopping around will yield the biggest savings on home insurance.

Firstly, don't simply opt for the home insurance supplied by your mortgage lender. They can be convenient when your busy sorting your mortgage but they're often over priced and chances are they won't have been compared against other policies on the market.

When shopping for insurance you basically have three options; go direct to the insurer, browse the web or use a broker. If you have the time and commitment you can do all three, but the fastest and most effective route is to log on and use the reach of the internet.

The best insurance websites compare dozens of brokers and home insurance companies in minutes. You only have to fill in one form to get a list of premiums displayed on your screen from major insurers and brokers. However, if you have unusual or very specific requirements the final premium may increase when confirmed direct with your chosen insurer.

TIP 5: Ask for a bargain

Home insurance has a margin of profit built into it which can be negotiated down if you're armed with the right information. Not all insurers will buckle and concede an additional discount but if you don't ask you won't know.

First, find the cheapest quote after using internet comparison sites and phoning a few brokers.

Select the cheapest quote and contact your existing insurer first asking them to beat it. If they won't budge contact the second cheapest insurer and do the same.

If after your best efforts, the insurer won't budge, ask them to throw in some extra cover to sweeten the deal or move on to the next home insurance company and repeat the same steps.

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