Insure you're getting best deal and don't lose out when its time to claim

HOME insurance premiums have risen this year and insurers warn of further increases as they absorb higher severe weather and flood-related claims.

Julie Owens, head of home insurance at Moneysupermarket.com, shares her tips on reducing the cost of home insurance.

1 Be accurate and honest

Supplying the right information is vital, as incorrect information may invalidate your policy in the event of a claim, regardless of whether the information was related to the claim or not. You risk having a claim for burglary of your home turned down if you told the insurer you had the wrong lock on your door.

2 Premium pruning

Easy ways of reducing premiums include joining (or starting) a local neighbourhood watch scheme, which is looked on favourably by insurers, as is having smoke alarms installed in your home. Your local fire brigade should be able to do this at no cost to you. Other helpful things you can do at little expense include having a burglar alarm fitted or fitting a higher standard of lock to your external doors.

3 Pay more excess

Consider the amount of voluntary excess you can afford - the higher the voluntary excess chosen, the lower the premium. But it's important to understand that this sum will be in addition to the compulsory excess the insurer requires you pay towards the claim. Don't agree to a higher excess than you can afford.

4 Shop around at renewal time

Insurers rarely offer their most competitive premium to existing customers. Shop around and compare policies and prices to secure the best deal for your circumstances. The average saving on home insurance policies achieved on moneysupermarket.com is currently 132. Why pay over 100 more for insurance when you don't need to?

5 Look beyond price

Taking the cheapest quote may be tempting but always check the level of cover is adequate for your requirements.

It may be that the second or third cheapest policy is only a little more expensive than the cheapest quote but has the right level of cover for your needs. It's also worth looking at excess levels. A policy may be only around 5 cheaper than the next, but the excess you need to contribute towards any claim could be significantly higher - the cheaper one might seem like a bargain until you find yourself needing to make a claim.

6 Read the policy wording

Understanding the detail of any insurance policy is crucial, especially on home insurance. You need to know that all aspects of your home that you want covered are covered.

You don't want a nasty surprise when you come to make a claim and discover that an expensive watch or item of jewellery isn't covered because it exceeds the maximum single item limit on your policy.

7 Don't under-insure

This will mean that you cannot replace all of your lost or damaged items as the amount you are claiming for will be reduced by the same percentage that you were under-insured by.For example, if you took out a policy stating that the value of your contents were 25,000 but the actual value was 50,000, you are under-insured by 50 per cent, so the insurer will only pay out 50 per cent of any claim you submit.

8 or over-insure

Being over-insured is better than being under-insured but will result in a higher premium.

The best way to be as accurate as possible is to note and value the contents of every room in your home to make sure you account for everything you would need to replace.

When insuring their property, many people supply the market value of their home and not the value it would cost to rebuild it. The re-build cost is the key value insurers base the premium on and is usually a lot less than the market valuation of a property.

9 Personal possession cover

Many people wear or carry a small number of personal items with them on a daily basis and they obviously want to protect them.

Mobile phones, jewellery, watches, sunglasses and MP3 players can all be covered "away from home" for a small additional premium.

10 Don't forget the outside

Many gardens now contain expensive items such as patio heaters, chimeneas and exotic plants.

Different policies have different limits for garden cover, ranging from 250 to 2,500, so check that the limit is high enough to cover your outdoor goods and that you wouldn't fall foul of any single item limits that might be in place.