Home insurance is one of the most valuable insurance policies you can get today. If you are a homeowner, you can alleviate many of the financial risks you face as a result of owning a property with home insurance. In the event of fire or theft, for example, you have that ease of mind knowing that the insurance company will cover you.
While the insurance coverage is valuable, home insurance is also the policy where you can save a lot of money and still get the coverage you need. You just have to know how to fine-tune your home insurance policy and find the best deals on the market, and we have the best tips to use in this article.
Know Your Needs
Home insurance is an insurance policy you want to get right. With life insurance, you pay for the full amount of coverage, which means you can increase the coverage amount by paying more. That is not the case with home insurance. Increasing your premium will not give you added benefits; the insurance company will only cover the value of your house and the items in it rather than paying the full coverage amount.
This means there is a big incentive in setting your coverage amount correctly. You can pay only for the coverage you need. The process starts with assessing the value of your home and the items you store in it. The more detailed (and accurate) you can be with this assessment, the more you can save on your home insurance.
Improve Your Credit
One of the factors reviewed by the insurance company when setting your home insurance premium is your credit history. Homeowners with bad credit are often seen as being riskier to insure, and they end up having to pay more for the same insurance coverage.
Taking some steps to improve your credit score is a good investment if you want to buy a home insurance policy. Small adjustments such as consolidating your credit card bills into one loan and making sure that your credit history is accurate go a long way.
The goal is showing that you are a responsible homeowner. The more you can improve your credit history, the lower your insurance premium will be.
You should never go for the first home insurance deal you come across, simply because there are so many deals and special offers to consider right now. The insurance market is at its most competitive right now. Expect to see a lot of interesting deals, extra discounts, and added coverage, all from the best insurance companies on the market.
While you are comparing home insurance, don’t forget to mention that you are comparing deals from multiple insurance companies. You may land an extra discount of up to 10%, allowing you to save on your insurance premium even more.
Check the Coverage Types
Some insurance policies come with extra coverage. What you want to do at this point is reviewing those cover types and amounts to make sure that you are not paying for extras you don’t need. With some home insurance policy, for example, home emergency cover is actually a paid extra that gets included by default rather than a free addition.
Don’t hesitate to customise your policy according to your specific needs. If you don’t need increased bicycle cover, feel free to ask for that coverage type to be removed in exchange for an insurance premium reduction. The same can be said for accidental damage cover and legal expenses cover. That said, you can keep these extras if they come with the policy for free.
Stick with Annual Plan
Another great way to earn a discount on your home insurance policy is paying the premium annually. Sure, paying the insurance on a monthly basis seems like the more manageable way to go, but you end up paying up to 10% more on average.
On the other hand, you don’t want to go longer than an annual plan. As mentioned before, the insurance market is becoming more competitive by the day, so you can expect better deals and more comprehensive covers to be available by the time you need to renew your policy.
Secure Your Home
Before you go ahead and make the purchase, it is also a good idea to take some steps to secure your home. Adding deadbolt locks, installing a safe, and having a more comprehensive security system are some of the things you can do.
These additions can be considered great investments. They help keep your house safe and lower your home insurance premium at the same time. Get the final quote revised to include the changes you have made, and you are all set.
That’s it! You can now buy a comprehensive home insurance cover without spending a fortune. Use the tips and tricks we covered in this article to make sure that you get the best deal possible on your home insurance.