Once a luxury for those wealthy enough to need it and afford it, household insurance has become a necessity for virtually everyone as burglars show an admirable lack of discrimination, plundering the homes of both rich and poor, from gated communities to informal housing sites.

As a result there is an increasing number of home insurance policy holders with insurance companies meeting the trend by providing affordable policies aimed at low-income groups.

The number and complexity of policies on the market, however, can be confusing, even for seasoned policy holders, let alone for those venturing to insure their possessions for the first time. Here, then, are some tips on how to get the most for your hard-earned cash and at the same time ensure that your belongings are adequately covered.

Update your policy:

Your purchase of household insurance does not end with the signing of the policy, which is then filed away until such time as you need to make a claim against it. As you buy new items for your home, update computers and other electronic equipment and jettison articles you no longer need these changes need to be reflected in your policy.

The cost to replace existing articles also increases over time. Failure to update your policy could result in bitter disappointment should you need to claim for stolen or damaged goods which you have neglected to include.

Keep receipts and inventories:

When you do purchase anything of value it makes sense to retain the receipt as proof of purchase. These should preferably be kept in a secure location outside of your home. Photographs of valuable items are also very helpful. Insurance assessors are inclined to be suspicious by profession – an undocumented purchase just prior to a burglary sets off all sorts of alarm bells in their minds.

It is also a good practice to keep an updated inventory of your household possessions. After the trauma of a burglary or disaster it is not easy to determine exactly what is missing. The belated discovery of missing valuables after the claim has been processed – ‘Where are Aunt Mabel’s silver candlesticks?!’ – can be avoided by keeping an itemized inventory.

Cover all residents:

Talking about Aunt Mabel, don’t forget to include all household members, including tenants, on your policy. Failure to do this would most likely result in their losses being excluded from your insurance claim.

Maintain security systems – and use them:

The more secure your property the more likely your premium will be discounted. Ensure that your insurance company is aware of security measures such as burglar bars and security systems. And if you have a burglar alarm make sure that it works and is always armed when there is no one at home. A non-operable alarm system, if it is stipulated in your policy, can be justification for rejecting your claim.

Minimize risk factors:

Finally, be aware of factors which increase the risk of burglary or fire damage, such as the structure of your home, its location and whether or not it is left empty for any appreciable period of time. By reducing these risks you can substantially decrease the cost of your household insurance.

Knowing the terms and conditions of your household insurance policy and updating it regularly, understanding claims procedures and reducing, as far as possible, your risk profile, will all go a long way towards ensuring you get the most out of your insurance.

Remember that short term insurance is not offered to everyone, nor does everyone qualify for the same rates in terms of premium costs. The fewer risks you pose to an insurer the cheaper your short-term insurance costs.

Be familiar with the conditions of your cover and the claims procedures at all times.