Home insurance costs can take a chunk out of any budget. Here's how to minimise them.
Your home is the most expensive purchase you’ll ever make and insuring it will also set you back a pretty penny. But there are ways you can reduce your premiums and save money.
1. Get a better deal
The first thing to do is to talk your insurer down. Give them a call and see if they can make you a better deal. Let them know that you’re shopping around and, while you would like to remain loyal to them, you’re more than prepared to jump ship to save money.
2. Combine your insurance
Some insurance companies bundle insurance, so you may be able to leverage transferring your car insurance to the company that provides your home insurance in order to get a better deal on both.
3. Increase your excess
Usually you’ll pay higher premiums for a lower excess, even though the chance of you actually having to use your insurance may be slight. Say you opt for a $500 excess, instead of a $1000 excess, at a cost of around $200 extra per year – within three years you’ll have spent the money you would have saved had you just gone for the $1000 excess – and that’s assuming you even have to use your insurance.
4. Don’t include your land value
When you decide on the value for which you want your home insured, consider rebuilding costs, not the total house and land costs. Land can’t be stolen.
5. Improve home security
Insurance companies like it when you install locks on your windows, deadlocks on doors, security doors, shutters and home security systems. Some companies will offer big discounts if you install approved systems, so check with them before outlaying a small fortune on alarms and monitors.
6. Ask about discounts
Many companies offer discounts but don’t really advertise them. For example, retired people stay at home more often than working people, so the chance of being robbed is much lower, any instance of electrical faults or fire will often be seen sooner, and homes will likely be better maintained. If you’re over 55 and retired, inform your insurer and you could be up for a healthy discount.
7. Loyalty pays
Long-term policy-holders often receive loyalty discounts, although you should do your research and ensure that your discounted price is lower than the standard rates offered by other insurers.
8. Review the value of your possessions
Your computer system may have been worth $3000 upon purchase, but three years later that system may be worth $300. The same goes for other technology and various items around the house. Regularly review the value of your possessions and adjust your coverage accordingly.
9. Pay annually
Monthly payments may be more manageable, but you will pay extra for that convenience. If you can afford it, and your company gives you the option, switch your payments to one annual outlay and you’ll save a bundle.
Do you know of any other ways that you can save on home insurance?
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