Bonus

FOUR: You’ll get a bonus from the taxman if you take out cover. The premiums are treated as tax deductible expenses – you can add them to all your other allowable costs when you work out how much you owe HM Revenue & Customs each year. But make sure you don’t give away all the savings you make from the taxman by paying too much to your insurer if you want to spread the cost of your cover over the course of a year. The interest rates if you pay by monthly direct debit instead of in a lump sum can be eye-watering. Experts say that if at all possible you should try and pay the full annual premium up front. If you sell the property half way through the year most insurers should offer a pro-rata refund.