Many UK home insurance companies will offer discounts to customers who can demonstrate that they are taking extra care to protect their properties. Some, for example, will cut premium costs if you are an active member of your local Neighbourhood Watch scheme. Why does this matter to insurers and how can you get money off your policies?
What is Neighbourhood Watch?
These schemes are set up by groups of local residents with the aim of making their neighbourhoods safer and minimising incidents such as theft, vandalism and general crime. Working in partnership with the police and local councils, each group of volunteers will 'look after' a specific area. According to Neighbourhoodwatch.net, there are currently around 150,000 schemes in the UK.
Why do Home Insurers Offer Discounts for Neighbourhood Watch Members?
Communities that operate a scheme take active measures to reduce crime in their neighbourhoods. As far as insurance companies are concerned, this can minimise claim risk. If you and your neighbours take steps to increase home security, to reduce vandalism and to work against opportunistic theft, for example, then you may lower the chances that you will need to make an insurance claim. In return, many companies will give you a discount on your home cover.
Do Insurance Companies Give Automatic Discounts?
You may find, when you fill in an application form, that the company asks you if you are a Neighbourhood Watch member. It may then give you an automatic discount; some will also advertise specific percentage-off deals up-front. You may, however, have to ask an insurer whether they do consider this when they cost up premiums as some do not openly advertise that they do.
You can't really join your local scheme and do nothing just to get reduced premium costs. Neighbourhood Watch does take some work. Plus, if you leave your local program or it closes down, then you need to tell your insurer as this affects your cover. They may then increase your premium in the future.
Other Advantages to Joining Neighbourhood Watch Schemes
According to a report by the Royal Borough of Windsor and Maidenhead, this type of prevention scheme can reduce crime in a protected street by up to 25%. This could make your local community and home safer. In itself, this could make it worth your while to join your local group. Any insurance discount you get could simply be an added bonus.
Bear in mind that reduced insurance costs are only a good deal if the base premium is competitive. Even if you are using your membership status to save money, you should still use insurance comparison sites, ideally at the start of your fact-finding process, to find those companies that offer the best deals before discounts are given. This could save you more money in the long run.
Source
- Neighbourhoodwatch.net: Set up Your Own Watch Scheme
- Royal Borough of Windsor and Maidenhead: Crime Prevention
Carol Finch - Carol Finch is the Topic Editor for Retirement Planning, Budgeting, E-Commerce & Technical/Business Writing on Suite101.
