Protecting your home is one of the best investments you can make, financially and otherwise. Not only will home insurance prevent you from paying out a lot of money if and when there is damage to your home or you experience theft, but you can have increased peace of mind. Home insurance policies can provide payout in situations that range from vandalism to a fallen tree branch through your roof. Reducing your building and contents coverage is possible, but it takes some effort on your part. Here are seven steps to cheap home insurance.

Switch, Don't Renew

On average, your insurance premiums will increase year-by-year. This means that the price you enjoyed when you first started paying for home insurance is unlikely to be maintained in the long run. While it requires more work than simply renewing your policy, shopping for a new home insurance policy every year may allow you to get a cheaper rate.

Don't Buy Too Much Insurance

Don't get talked into flood insurance or earthquake coverage when you don't really need it. Carefully consider the insurance that you actually need on your home and purchase a policy that is appropriate. Limiting the types of coverage that you opt for will bring down your premium. Don't sell yourself short and pay for less insurance than would actually be useful, but don't buy a high end policy you don't need.

Shop Online

Some insurers offer ongoing discounts for customers who purchase their home insurance policy online. This discount may only be good for one year, but it can afford cheaper insurance at least for a limited time. Going online to look for insurance also lets you see a broader array of options. Consulting with an insurance broker may only give you a look at a few of the UK insurers who serve your postcode.

Secure Your Property

Home insurance companies almost universally give cheaper insurance rates to homeowners you can prove that they have installed an alarm system, quality locks, and taken other efforts to deter break ins. These investments cost money up front, but can spare you high insurance fees in the long run. You may also stave off a burglar and avoid the need to file a claim on your home insurance.

Investigate No Claims Bonuses

Many Britons are familiar with the concept of a no claims bonuses for car insurance, but don't realize that some home insurance companies are also offering similar discounts. A no claims bonus lets you take advantage of a cheaper insurance premium when you don't file a claim on your account for at least one full year. You may be able to transfer this bonus between insurers if you can provide proof that you earned it with your last home insurance policy.

Save Now, Pay More Later

You can save money now if you are willing to pay more in the event that you file a claim. Each home insurance policy has an excess or deductible assigned to it. This is the amount of money that you are committing to pay out of pocket before your insurance coverage kicks in to assist with expenses. For instance, if you increase your policy excess from 500 to 1,000 pounds, you can pay a lower premium rate but will be responsible for 500 pounds more when you file a claim.

Bundle Your Insurance

If you pay for more than one insurance policy with the same company, you may save money on both policies. If you have home building and contents cover with the same insurer, or even home and car insurance with the same company -- you can earn significant savings immediately. Make sure to request this discount specifically, in case it's not offered automatically.

Following these seven steps for cheap home insurance is a good start when it comes to reducing the expense of homeownership. When in doubt, get quotes from more than one reputable home insurance company, and don't be afraid to consider being insured by a smaller company. While you may feel some brand loyalty to a certain insurer, sometimes a less known company may offer discounts or lower coverage rates in your area.