Five Ways to Save Money on Home Insurance

Home insurance is a necessary expense for any homeowner. Insurance protection against the loss or damage of the home and its contents gives peace of mind and should be on the checklist of anyone purchasing a home. However, there are ways to save money on home insurance.

Shop around

There are more and more companies offering home insurance policies. In previous years it was only specialist financial institutions, but now all manner of business has entered the market, from online retailers to supermarkets. Get a variety of home insurance quotes from different companies (online comparison sites can be useful for this) and compare. Because different companies use different assessment criteria, the homeowner may find a lower quote for the same coverage.

Don’t over insure

While individuals don’t want to undervalue their home or its contents for the purposes of insurance, equally, they don’t want to over insure. Make an honest, accurate assessment of the value of the items you want to insure. This will ensure payment of the correct premium for the insurance coverage. Also, when purchasing buildings insurance, remember that this is intended to cover the cost of rebuilding the home, not the amount it was purchased for or its estimated resale value.

Raise the Excess

The excess is the threshold up to which the homeowner pays for any damages or loss before the insurance policy is activated. Consider raising the excess, as doing so usually results in a lower premium. The homeowner should consider a reasonable financial limit that they can afford and adjust the excess accordingly.

Lump Sum

Paying for an insurance policy in a single lump sum may serve to save money. Insurance companies will usually charge interest and handling fees for payment transactions. If an individual pays for their policy on a month-by-month basis, these fees will add up. Check with insurer whether a single lump sum payment generates savings and, if the means are available, consider paying up front.

Increase Security

Insurance providers will usually have a checklist of security measures that, if implemented, will lower the insurance premium for that house. Fitting mortis locks to doors, key-locks to all windows and installing a burglar alarm system are likely to mean lower insurance payments. Installing smoke alarms and a fire extinguisher will also help reduce the premium cost. Check with the insurance provider if there are any minimum standards of security measures that they require to activate a discount. For instance, many require alarm systems to have been certified by the National Security Inspectorate.

 

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