Cheaper Home Insurance Premium Strategies
If your goal for 2018 is to save money, you don’t need to skip your morning latte to ensure extra cash in your wallet. You can try some simple strategies to lower your home insurance premiums instead. We bring you the top 7 ways to get cheaper home insurance:
1. Pay Your Premiums Annually
Many companies will offer a discount if you pay your premium annually rather than monthly. You can set aside a fixed amount every month so that you have the funds ready to pay at the end of the year.
2. Bundle Your Insurance
You can get adequate discounts if you buy your home and auto insurance policy from the same company. The savings can be between 5-15% of your annual premium costs.
3. Rethink Risky Choices
You can’t move your home away from a risky neighbourhood but you can avoid a few things that insurance companies frown upon. For example, skip the swimming pool as it can lead to extensive costs related to injuries and drowning risks. If you’re thinking about getting a dog, know that some breeds like Pitbull and Rottweiler can boost your rates. Also, keeping a trampoline in your backyard will increase your insurance premium as the company sees a threat to your neighbour’s kid who might fall off and break his neck.
4. Add Safety Features
Keeping your home safe and secure is good for you as well as your insurance policy. Installing security systems with burglar alarms, smoke detectors, carbon-monoxide detectors and fire extinguishers can get you significant discounts (up to 20%) on your premiums. If you stay in a disaster-prone area, add features like stronger roofs, shatter-proof windows, storm-resistant doors and storm shutters to save more.
5. Quit Smoking
This is not just good for your health, but also for your home. Insurance companies will lower your premiums when your house is a smoke-free zone. This reduces the risk of a house fire and the damage caused due to it.
6. Buy Smart
If you’re in the market for a new house, consider the insurance costs of the properties you have shortlisted. Also, keep a few things in mind while choosing your home:
• Opt for a home close to a fire hydrant or a fire station
• Buy a newer home as insurance rates are lower because electrical, plumbing and heating systems are less prone to problems and repairs in a new house
• Get a quote for home insurance before you purchase your property to avoid costly surprises
7. Ask for Discounts
When you’re finalizing a policy with your insurance company, ask for all the discounts you qualify for. You can also speak to a broker or an agent to help you look for the best discounts in the market. These can include loyalty discounts, claim-free discounts, senior citizen discounts or even group discounts.
If you want to control your premium costs, review your coverage every year and make necessary changes to your policy as per your home improvements. Also, it will help you understand how the company is raising your limits annually based on the inflation rates.