Buildings and contents insurance premiums are a regular expense that most householders consider necessary, and most mortgage lenders in any case require buildings insurance to be taken out. Premiums are based on a number of different factors relating to the level of risk, as well as the amount insured, but there are a number of things you can do to reduce your risk and negotiate lower insurance payments. These tips can help:

1. Shop around - Asking for quotes from different companies may save you money. Insurance companies have different ways of calculating risk based on their own claims history, which results in some offering lower premiums than others.
2. Buy online - By purchasing your insurance policies online you may be eligible for a discount of 5% or more from some insurance companies.
3. Ask about discounts - Insurance companies often offer discounted premiums to certain groups, such as non-smokers and seniors.
4. Arrange insurance via your employer - By arranging your policy through your company or professional association's group package you may get a favourable rate.
5. Keep the same policy - Staying with the same insurance company over time is likely to earn you a discount on your policy. Or arrange a discount with your existing insurer and use it as a bargaining tool to negotiate an even better rate with another company.
6. Buy a combined policy - By taking out a combined buildings and contents policy, you're likely to be offered a discount of at least 10%, and you may only have to make a single excess payment.
7. Buy property that is solidly constructed - Buildings insurance premiums will be lower if your house is considered resistant to adverse weather conditions.
8. Buy property in a low-risk area - Contents insurance will be cheaper if the risk of burglary is low, and buildings insurance is cheaper outside areas that experience severe storms or bushfires.
9. Secure your home - Installing security devices such as alarms, smoke detectors deadbolt locks or lockable windows, will probably mean that you qualify for a discount of 5% or more on your premiums.
10. Increase your Excess - If you're prepared to make a higher excess payment when claiming on your insurance, your premiums can be reduced by up to 50%. Over time, this may be cheaper even if you do have to make a claim.
11. Don't under-insure - By accurately assessing the cost of rebuilding your home, or buying new belongings at current market prices, you'll save money in the long run if you have to make a claim.
12. Be honest and accurate - When completing your insurance application, be sure to provide all the background information required by the company. Otherwise they may refuse or reduce a later claim.
13. Take ongoing steps to reduce your risk - If you've never made a claim you'll qualify for an annual no-claims bonus on your premium.