It`s not always easy being green. Green cars cost more, renewable energy sources are expensive to implement in your home and just when you think you`ve got your place kitted out with solar panels and wind generators so you can finally start saving energy and money, along comes the home insurance bill. Anything unusual, whether its modifications on a car or a new sport you plan to try on holiday, will bump up your insurance premiums – and making your home eco-friendly is no exception. However, there are now a host of home insurance providers that specifically market to “green conscious” customers. However, just how good are these deals?
What is green home insurance?
Basically, in reaction to more people becoming eco-conscious, insurers have designed products specifically targeting these customers. Some may offer cover for specific features such as solar panels on the roof or using a renewable energy source for your electricity; while others offer carbon offset schemes to help counter your property`s emissions.
Let`s break them down:
Cover for equipment:
Most insurers won`t cover equipment such as solar panels and wind generators – and if they do, it will normally be with a sizeable premium in tow. Some green insurers however, such as Lloyds TSB, will include features such as for “the repair, replacement and theft of equipment that generates electricity”.
Incentives:
Some insurers offer specific environmental incentives – such as encouraging homeowners to go green after a property is destroyed. Discounts may also be available if your home has specific environmental features.
Carbon offset schemes:
Offered by the likes of RK Shipman and the Environmental Transport Association, these policies “offset” your home`s emissions by contributing to environmental causes such as building wind turbines or replenishing the rainforest.
How can you find cheaper green home insurance premiums?
While these green incentives are all well and good they often come at a price.
So how can you lower your premiums?
The first step is to think about the level of cover you really need. It may be important to cover the environmental equipment in your home but do you really want to contribute to a carbon offset scheme too? Morally it`s great if you do, but you may actually make a bigger contribution to the environment if you find the cheapest home insurance deal and then put the money you save towards a project of your own choice.
If you have a green home it`s important to go that extra mile to lower your premiums to “make up” for the additional cost your green features add to your home. Some straightforward ways to save include:
Increase security:
Reduce your theft risk and most insurers will cut your premiums. This can be done by fitting security devices (although you should ask your insurer to recommend products first) such as burglar alarms and time-switch lights. You could also cut premiums by joining a Neighbourhood Watch scheme.
Reduce fire risk:
Quit smoking, fit smoke alarms and keep fire extinguishers in your home and your home insurer should slash your premiums.
Increase your excess:
Think about how much you can afford to pay in the event of a claim. The more you can afford, the lower your premiums.
Pay annually:
Avoid monthly interest charges by paying annually on your policy.
No-claims:
Build up a discount by avoiding unnecessary claims. If you`re looking for big savings on your premiums then carry out a home insurance comparison every year rather than accepting renewal quotes. Most insurers offer their leading rates to new customers online where they save money on overheads.
