Just as with private car insurance the sales team has a daily quota to fill

Just as with private car insurance, the sales team has a daily quota to fill. "There are clear incentives to do this in the form of generous discounts but it is in everyone's interests to take crime and loss prevention seriously. It is often cheaper to take out insurance independently and not just accept the policy offered by the mortgage lender.A number of companies will now offer discounts to policyholders who take out building and content insurance with them at the same time. The statistics show that UK pension funds collectively have been net sellers of US shares for five of the last six quarters, and their holdings of US shares have fallen from roughly 7 per cent of their portfolios to just 4 per cent in the last four years.Managers of investment trusts and unit trusts have also been scaling back their holdings in North America because of concerns about the high valuations being put on most Wall Street stocks. At the same time their holdings of cash have roughly doubled over the same period.But few professional investment managers have taken this view to the same extremes as Mr Dye. So concerned is he about valuation levels that he has cut his holdings of US equities to virtually nothing, and raised his cash holdings to two-and-half times the industry average.

This stance only makes sense, in investment terms, on the assumption that the US and other stock markets are going to fall quite sharply in the near future.Amid all the headlines, Mr Dye remains defiantly certain that he is doing the right thing, And quite rightly too. A few will give a small no-claims bonus if there has not been a claim for one or two years.Other discounts are also available. Most insurers will usually give between 5 and 10 per cent discounts to householders who have installed suitable locks on doors and windows, with further discounts available to those who fit burglar alarms. Members of neighbourhood watches often also get reduced premiums."Policyholders can do themselves some good by helping to keep down the cost of claims" says Mark Boleat. Inertia has led to many householders paying far too much for their insurance.

Instead of remaining with one insurer, it pays to compare the rates offered by a number. This is particularly true when the insurance is purchased as part of a mortgage package. But where they are covered, householders could find themselves paying a separate premium just as many now do for bicycles and expensive garden equipment.There are a number of things a householder can do to reduce the cost of domestic insurance. Now that the housing market is improving, the insurance industry is expecting an increase in claims. Evidence of subsidence often only comes to light when a building survey is being conducted for a sale of a house.Another trend spotted by the ABI is that of rising computer thefts from the home as well as from offices. Not all house contents insurance policies cover home computers, especially when they are used for work purposes.