According to an article in the Australian Financial Review this week home owners should expect to pay an average of 13 per cent more on their insurance premiums this year than they did last year. That's a hefty increase when you consider 2011 saw an average increase of 10 per cent in the cost of premiums.
But there are a few things you can do to bring down the cost of your insurance without compromising your level of cover.
Package policies
Rather than looking at insurance policies individually think about your insurance needs holistically and take advantage of discounts offered by insurers for taking out a number of different policies with them.
NRMA for example offer a multi policy discount of 10% if you take out home contents, car insurance and your CTP green slip with them.
Shop around but don't move for the sake of it
Every time your policy comes up for renewal or you if you renovate or decorate you should review your cover to see if its adequate and you're getting the best deal.
But dont just move for the sake of it, many insurance companies offer loyalty discounts similar to multi-policy discounts for customers who have been with them for a number of years.
Review both what cover you have and what other insurers are offering in terms of value and price, but if you do think youll get a better deal elsewhere be careful that a opting for a cheaper policy doesn't mean you are losing cover.
Up the excess and pay annually
Consider whether you can afford to increase the level of excess on your policy to bring down the premiums.
Basic excesses with NRMA insurance policies for example range from $100 to $1000. Opt for the higher figure and your premium will be reduced.
And remember for some claims you won't need to pay the excess.
Budget for and pay your premium annually, it's cheaper than paying monthly instalments.
Lose some of the optional extras
Accidental damage, burn out of electric motors and valuable contents cover are a few of the optional extras with a basic home contents insurance policy at NRMA.
If your white goods are still under warranty then you probably wont need the electric motors coverage, but accidental damage cover might come in useful if youve got some nice stuff and a houseful of young children.
Make your home safe
Insurance companies calculate the premium on your home based on a range of factors. Some you can't control, like location, but some you can, like security features.
If your home has an alarm then that will bring down the premium.
Insurance is an expensive but necessary cost for home owners so it worth doing your homework to get the best deal.