All insurance policies protect against the risk of financial loss. So to cut the cost, cut the risk to the insurer and you’ll get a lower premium. To give you an idea, here’s a quick summary of the most effective tactics…
* Fit locks to all windows and deadlocks to the doors. Most insurance companies will give you up to 10% off your home contents insurance if you have these kind of locks fitted around your house.
* Having a good alarm fitted by a recognised alarm fitter, which your insurance company can recommend, can give you up to 10% off your policy. Bear in mind that these are expensive alarms which require an annual check up.
* Extra security. Declare any special safety precautions you’ve made for your valuables such as a home safe.
* Your lifestyle. If you have a dog, are teetotal and don’t smoke, be sure to declare this as such factors are used by some insurers to reduce premiums.
Before you carry out any security improvements to your home, always check with your home insurance company first. They will confirm which improvements will have the biggest cost cutting impact.
TIP 2: Know what home insurance you need
Working out an accurate figure for the buildings and contents insurance value can be awkward, which is why a lot of homeowners are either under insured or paying for levels of cover they don’t really need.
Building insurance covers the re-build cost of your property not its market value. The re-build value of your home is the cost of re-building it in the event that it is destroyed by fire or subsidence for example.
Alternatively, you can opt for a policy that has an unlimited or high standard buildings sum insured so you don’t have to worry about insuring the right amount.
Then there is the home contents insurance which covers almost everything else you would take with you if you move. Make a list of the rooms in your house and write down all the items contained in each with there value. Then, total the individual amounts to see what contents insurance protection you need. Whether your wardrobe is full of jeans or designer labels, make sure you include the cost of replacing them.
TIP 3: Consider separate building & contents insurance
If you need both building and contents insurance, consider separate policies. Some insurers do provide them as separate policies and just because one is cheap for building coverage doesn’t mean they’re equally competitive to insure the contents. Find the cheapest providers for each component and consider buying each from different insurers.
TIP 4: Work with an agent who will shop your premiums
Using an independent agent will yield the biggest savings on home insurance.
Firstly, don’t opt for the home insurance supplied by your mortgage lender. They can be convenient when your busy sorting your mortgage but they’re often over priced and chances are they won’t have been compared against other policies on the market.
At an agency like Wellcovered Insurance Group, we have multiple homeowners insurance carriers to choose from and can help you find the best possible price among all of them.
TIP 5: Raise deductibles
The deductible is the amount you need to pay before the insurance kicks in and insurance carriers find that the higher the deductibles the fewer claims they see so they reduce the cost of your insurance.
This is a decision that needs to be taken carefully, espeically when considering hurricane deductibles. Work with a qualified insurance professional to find the right combination of savings with an out-of-pocket deductible that won’t break the bank.