HOW TO SAVE MONEY ON HOME INSURANCE
With the ever-increasing cost of living, you may be reassessing your financial situation and looking at ways to save money and cut down on costs. One way you can save money is by having a look at your current home insurance policy and possibly changing the cover.
Home insurance is a necessity for homeowners, and although it is incredibly important to have, it doesn’t have to be a financial burden. There are ways in which you can ensure that you’re getting the necessary cover for your home and save a few bucks on the side. Below are a few tips on how to save money on your home insurance.
Review your current insurance policy
Ideally, you should review your current insurance policies as part of an annual financial assessment. Every year the value of your property, as well as its contents, changes so your insurance cover should be adjusted accordingly.
Shop around before you decide
The most expensive insurance isn’t necessarily the best cover. Shop around and see what options are available from the various insurance providers. Research may take some time and effort, but it is always worthwhile to ensure that your current policy is still your best option. Competition in the market forces insurance companies to launch new products regularly to find ways to undercut their competitors. So, while your policy might have been the most competitive when you first shopped around, it might no longer be the best policy a year later.
Shopping for policies doesn’t need to be difficult or time-consuming. There are centralised sites that provide quotes from different providers, without you having to search on other portals. You will be required to load your details and insurance criteria, after which you will receive a list of all insurance companies and policies that match the requirements. The list will also include the premiums for each option. This will quickly paint a picture of which company can provide the best value for money.
What to look for when comparing policies
Firstly, check if the policy includes liability cover which will cover any injury or damage to other people on your property. You would also need to check for household contents and personal property cover. Peruse this clause carefully as certain items may be excluded or covered under another type of insurance. Also, check if certain items need to be specified, such as jewellery and laptops or other electronic devices.
Tricks to lower your premium further
After comparing quotes and selecting the appropriate one, you could further decrease your premium by upgrading your home’s security. Adding or upgrading your home’s security can reduce the monthly premium by as much as 5% in some instances. Certain insurance companies will also reduce their rates if you are associated with a neighbourhood watch programme.
Preferential premium rates will sometimes be given to homeowners with a low or no claim history, so try only to make use of your insurance policy when it is necessary. If possible, try to pay for small incidents from your emergency fund and leave the insurance policy for when it is needed. Premiums can also be reduced by opting for a higher excess on claims. If you do this, it’s a good idea to keep a separate savings account that can cover the excess.
There are many factors to consider as a homeowner, and insurance falls under top priority. If you’re new to homeownership, organise a coffee date with one of our local real estate professionals to help you get a better understanding of all the factors involved in owning a home.