Home insurance – a vital investment that doubles as a grudge purpose. Here are some tips on how to save money on your premiums…
Published: Wednesday, April 19th 2017
Home insurance - a vital investment that ensures you are covered from incidents like home invasions and theft to natural disasters.However, like most insurance, it is a grudge purchase and another stress on our already strained wallets.We have some tips you can use to try reduce your premiums - giving you protection while also saving some money.
1. Don't Include Your Land In The Valuation Of Your Home
As III.org points out, the cost of buying your house is different to the cost of rebuilding your house.Generally, even in the event of a disaster, which destroys your home, your land will remain intact.Therefore, you should not include the value of your land when you take out your home insurance policy.By having a reduced amount of cover, you will have lower premiums. While you may think "The more cover, the better", this isn't necessarily true if you end up not submitting a claim.This is especially important in areas with high land costs. Your land's value could make your premiums skyrocket.
2. Add Safety Features To Your Home
Many people don't realise that things like installing an alarm and other security features can reduce your premiums.In addition to this, making your home compliant with fire regulations can also reduce your premiums.These upgrades are relatively low-cost and will save you a larger amount of cash in the long run.This can also apply to flood-proofing your home if your area is prone to floods.
3. Use The Same Insurance Provider For Multiple Policies
TheBalance.com suggests using the same insurer for multiple policies, if they offer discounts for taking out multiple coverage options.A useful combination could be home and car insurance - since most owners of these assets will consider cover for them a necessity.Since you're investing in both anyway, you should try get a discount by using the same insurer.
4. Update The Value Of Your Possessions Once a Year
Did you end up selling that extra TV you didn't need? Or, have some of your possessions devalued with age?Your insurer is not likely to over-value your assets when it comes to time to claim. So, you shouldn't be paying premiums for assets that have devalued, or which you don't own anymore.Of course, updating the value of your assets could increase the cost of your premiums, if you bought something expensive. However, this is still important as updating your cover safeguards that asset and allows you to add coverage for it.
5. If You Haven't Claimed For Years, Consider Renegotiating Your Premiums
According to Realty Times, if you have proven yourself to be a low-risk client, by not claiming for a long period of time, you may be able to ask your insurer for a discount.This could be combined with a loyalty discount if you have been with the same insurer for years.While it is not guaranteed that your insurer has these discounts available, it's worth contacting them to find out.And, if they don't offer this, you could consider moving to an insurer which does.
6. Do Your Research
Knowing what insurers consider risky behaviour can work in your favour.For example, smokers may attract higher home insurance premiums due to most house fires being cause by cigarettes.Therefore, if you don't smoke, make sure to highlight this fact to your insurance agent.Of course, don't lie. As we outlined in this life insurance article, lying to your insurer will end up costing you instead of them.Researching insurance plans can also make sure that you get the best value-for-money by considering multiple companies.