Tips to help you save on your home insurance premiums
We present a few simple tips to help you reduce the premiums you pay on your home insurance policy.
Every person that dreams of buying a home envisages decorating it the way they want, and leading a peaceful life to the end of their days. But there is one element of living in your dream home that is not immediately obvious to the first time home buyer. This element involves protecting the home against losses and damages in your absence. The best way to protect your home and its contents against the risk of damage is to buy a home insurance plan . If you are interested in buying this policy, you will also wish to know more about how to reduce the premiums on it. Consider the following simple ways to do so:
- Look for all-inclusive plans
When home insurance was a relatively new concept in India, buyers would look to bundle their personal liability plans with house insurance. This way, they would get higher coverage on the house insurance. Another ploy was to reduce the deductibles, so that the premium would be lowered. But today, there are excellent all-inclusive home insurance plans that provide coverage against a wide variety of damages and losses to the house and its contentsi. The premiums are affordable with comprehensive house insurance plans.
- Get the house valuation done correctly
This is step most people falter on. Incorrect evaluation will result in faulty assessment of the house and its price, as well as the cost of the contents you wish to insure. In turn, you might end up with inadequate coverage, or a high sum insured with an expensive premium. Pick the right insurer so that you can be certain that they will carry out the evaluation professionally.
- Insure when the house is new
Wear and tear and age of the building and the house play a big part in the sum insured of the policy. If you are getting home insurance, do so when the house is new or right after you purchase it. This will ensure that the premiums are lower, since the element of risk due to damage is lower in a new structure.
- Have good credit history
A surprising factor that determines how much premium you pay for the home insurance plan, is your credit history. Insurers are wary of those with low credit scores. Insurers surmise that those with a lot of existing credit will make several claims against their insurance policiesi. Hence, they hike the premium to offset this element of risk. The simple answer is to have minimum pending liability before taking a house insurance plan.
- Research plans before buying
It is always better to conduct research about different house insurance plans and their benefits, before signing up for the most suitable one. You can easily research different policies online. Comparing their benefits, inclusions, and exclusions helps to arrive at the most suitable policy – and work out the premium that best fits your budget.