When it comes to our outgoings every month, home insurance can be one of the biggest debits. It’s one of the most essential elements of our financial protection, however hardly anyone ever uses it. Yes, it’s handy to have if you’re house is blown apart by a storm – you can claim on your buildings insurance for the property, and also claim on the contents of your home that were also destroyed. But what are the chances of a storm blowing apart your home?
Over the last five years, the average home insurance premium has steadily been rising, with many homeowners looking elsewhere for their insurance instead of renewing policy. When it comes to home insurance, most people think that staying with the same company for a number of years will create a sense of loyalty with your insurer, thus creating discounts for future renewals.
Sadly, this is not the case, and millions of people will continue renew their policy without comparing the market. In most cases, homeowners could make an instant saving, some as much as 50 per cent! Although homeowners insurance is very important, that doesn’t mean you have to pay the highest premiums for protection against unexpected events.
There are a number of ways to reduce the cost of your home insurance, without losing the benefits. In some cases, you could even save money and increase the amount of benefits you get.
Raise Your Deductible
If you want to lower your monthly insurance premiums, than upping your deductible is one of the easiest ways to do it. A deductible is the flat rate, one-off fee that you pay to claim on your home insurance, for example, if your house was damaged and you wanted to claim $20,000 to repair it, your deductible could be $1,500.
If you’re good at saving and you have an emergency fund, then you can use this to pay your deductible. Although raising the cost sounds crazy, it’s rare that you’ll actually have to make a claim in the first place. This will provide you with the cheapest home insurance, and the money you save could go back into your emergency fund!
Protect Your Home
Although home insurance is there to financially protect your property, there are a number of things you can do to drive down your premiums by protecting your property even more. For example, insurers will offer you discounts for installing features in your home that are weather resistant, like shutters on the outside of the windows, or stronger roofs to protect from hailstones.
Installing security features are another great way to lower your home insurance costs. Not only will your policy provider give you discounts, but extra security features will deter burglars from entering your home. Homeowners all across America lost an estimated $4.5bn from theft in 2009 along. Before you fork out and hard cash however, contact your insurance company and see how much of a discount they will offer you for your extra protection.
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