Most people love the opportunity to save money, especially related to insurance. However, insurance is such a boring topic that people often don't pay much attention to it and end up paying a lot more than necessary.
Home insurance might seem complicated but it does not mean that there is no way for you to save money on home insurance. In fact, there are several ways for you to buy cheaper home insurance but you need to be proactive. You can't just rely on the rates being quoted by insurance providers. You need to step out and spend some time on researching the ways to save money with the help of cheap home insurance quotes. Here is how you can make your home insurance cheaper.
First and foremost, the cheapest home insurance product available in the market isn't always the right choice. You need to figure out your own requirements before choosing a home insurance product in order to get adequate insurance and more importantly, the right insurance. Simply put, you want a policy that offers the right features at the right price. Here is how you should go about it.Research and Compare
One of the most common mistakes made by homeowners when it comes to buying insurance is that they just pay the renewal as decided by their insurance provider. That implicit trust in your insurance company is misplaced. Not many people know that paying the renewal as asked by the insurance company is a sure-fire way to lose money. You can save significant sum of money by shopping around to get a better deal.
One of the ways to get a better deal is to get quotes from a variety of insurance providers in your location such as https://www.pembrokeinsurances.ie/home-insurance/
and other specialists. There are many websites that allow you to get quotes from dozens of insurance providers in just a few clicks. Keep in mind that these insurance quotes are just indicative of the final premium you might be required to pay but you have to start somewhere.
In addition to the online quotes, you might also want to get in touch with a well-known local insurance agent who isn't affiliated with a particular insurance company. They will help you choose the right product and make sure you get it at the right price. It is true that these insurance agents work on commission but they are aware of the latest policies offered by different insurance companies. They will help you choose the right insurance coverage with features you truly need and they will be of great help in case you need to file a claim.
Needless to say, don't focus only on the price quoted by the insurance company when choosing an insurance product. Check the reviews and history of customer service. Find out how long they normally take to send a claims adjuster and how fast they make payments as well as other such important things.Higher Excess
You must be aware that excess is the amount you have to pay out of your own pocket whenever you file a claim. Once you have paid the excess, rest of the amount is paid by the insurance provider. You can save considerable sum of money by opting for an insurance product with higher excess.
However, it does not mean that you should choose a policy with highest excess in order to save money. After all, you are buying insurance for peace of mind. Choosing higher excess will allow you to save money in the short term but it can be a big mistake when it comes to making a claim. At the end of the day, it's all about reaching that balance. Make sure you always have the amount of excess available in your savings account in case you need to make a claim.Invest in Security Systems
An insurance company determines your premium based on the probability of paying out a claim. If you invest in security systems such as smoke alarms, windows
, fire alarms or other types of security, it can have a significant impact on your insurance premium. By investing in these systems, you reduce the probability of your home being damaged due to various reasons. Needless to say, it should result in lower home insurance premiums.Annual Premium Payment
You have the option of paying premium on a monthly basis or on an annual basis. It has been observed that you can save quite a bit of money in the long run when you choose to pay your insurance premium annually instead of paying it monthly.Multiple Policies
If your insurance provider offers a multitude of insurance policies including life insurance, boat insurance, home insurance, car insurance and other types of policies, consider buying all your policies from the same insurance company. Many companies offer significant discounts when you decide to buy multiple policies from them. It will take some time to gather quotes from insurance companies but you will save significant amount of money by spending a few hours to get quotes from different insurance providers for multiple policies.Discounts
Various types of discounts are offered by insurance providers but you have to ask for it. Nobody is going to do it for you. Here's a list of some of the most common discounts offered by various insurance providers.
If you have people in your home who are senior citizens, you're likely to get a discount. In some cases, it can go as high as 10%. This is due to the reason that senior citizens are more likely to stay at home and that reduces the risk of theft.
You can also save money in case you haven't made any claims for a number of years. In some cases, you might be able to save as much as 20% on your home insurance costs but it is something you have to tell the insurance company when asking for a quote.
Installation of certain sensors makes your house safe. For instance, if you have a water sensor in your house, it can help you detect leaks before water does significant damage. Similarly, there are other types of sensors that can help you save a good amount of money on home insurance costs.Review the Value of Contents
When you are valuing your house for the insurance, do not take into account the cost of land. In case you lose everything due to some unfortunate event, the land will always be there and you will only have to pay for rebuilding your house.
Another important thing is accurate valuation of the household contents. For instance, a computer system that cost $2000 4 years ago might be worth $500 now. So, do not value it at $2000. Similarly, do not add extra value to your possessions. It will increase the value of your household contents and with that your insurance premiums will also rise.Other Factors
Various other factors also play an important role in the overall cost of home insurance. For instance, the type of cover you choose will affect the cost of insurance. If you opt for a comprehensive policy that includes a lot of additional benefits, it will cost a lot more than a basic policy.
Similarly, location of your house also plays an important role in the cost of your insurance investment
. If the location is susceptible to various natural events such as cyclones or floods, it is be perceived as high risk by the insurance provider and you will naturally have to pay higher insurance premiums. Structure and age of the property also plays an important role in the insurance premium.Conclusion
Overall, a number of factors go into deciding your overall home insurance premium. The insurance market is extremely competitive and there is always the scope of saving a significant sum of money on your insurance costs. Therefore, you should never accept a premium being quoted by your insurance provider. Shop around and you should be able to find an offer that covers all the features you need at a significant discount.
Use the tips mentioned above and get cheap home insurance quotes to save money on home insurance when the time comes.