Premiums are calculated in various ways and this is why there are differences between the offerings in the marketplace. The cost gap between Asda Home Insurance & L&G Home Insurance is purely because of the distinct way each organisation sizes a customer’s circumstances up.

However, there are a couple of standard rules when a value is being drawn up. Home insurance is mostly based on the cost of rebuilding the structure from scratch. There is also a great deal of consideration taken in weighing up the prospective risks that are specific to each residence. For example, a premium may be higher if the property location is perceived to be of a high risk or if the security is poor. The related premium is generally paid to the provider on a monthly basis for the duration of the predetermined fixed time period.

Many consumers feel their home insurance premiums are expensive but the rate can be reduced in several ways:

1. Shop around
With the vast number of organisations offering home insurance deals, it might seem an unfeasible and long task, but there are comparison websites out there such as www.fool.co.uk which will find and compare home and life insurance data on your behalf. It’s also worth looking at panel insurers like Asda Home Insurance or Endsleigh who will find the best policy for you from a panel of different insurers thus saving you considerable time and effort hunting round for the best deal.

2. Contact the provider
The consumer can discuss with them the assessment of their home and find out the reason the premiums are as they are.

3. Take the risk factor out of the equation
It’s well worth beefing up home security if it’s going to reduce a premium. You should find that merely installing a burglar alarm and refitting door locks will be enough to knock the cost down significantly.

4. Remember premium rates can be flexible
Most people are liable to take what they are offered. Conversing and perhaps bartering with the insurer can frequently have an impact on the price of premiums in favour of the consumer.

5. Raise the excess on the policy
The consumer normally has to pay £50 to every claim request. The ability to pay more is usually in your interest.

6. Consider carefully whether or not to claim
A consumer with a history of 'no claims' is more likely to be offered decreased premiums than one who has made many. Prudent consumers may in fact cover the costs of lesser damages themselves, maintaining their 'no claims' status. This can have a dramatic influence on premiums.

7. Look at your lifestyle
A number of insurance companies can consider a consumer's living habits when evaluating their application. Drinking alcohol, smoking and having a pet can have an influence on an insurer's judgement.

8. Take security measures
With regard to personal valuables, an insurance company is likely to be more favourable if a safe is installed and the valuables are kept securely in it.

9. Maintain good records
Not necessarily a money-saving tip but this can save you from being seriously out of pocket if you need to claim. Conduct an annual inventory, keep hold of receipts and make sure certain valuable individual objects are covered.

10. Plan ahead
If a claim has not been made, a home insurance policy can often be cancelled with a complete refund. Knowing this, the customer can 'keep an eye on the market' and change insurers if a better deal becomes available without having to wait for their existing policy to end.