When it comes to property insurance, it sits just behind life and auto insurance in terms of our priorities. Although an essential expense, any responsible homeowner would naturally want to pay as little as possible for the best cover around.
That being said, it is always a wise move to be realistic with the cover you need. Failing to account for water leaks, break-ins, pets with a taste for postmen, and protecting family heirlooms can lead to unimaginable stress if you suffer a worst-case scenario. With many other things, the opportunity to save on property insurance should always be looked into. After all, if you can get the same cover for less, why wouldn’t you take it?
These 5 tips to save on property insurance should help you find your way.
Shop Around – Always shop around for the best deals. Insurance companies can only remain in business once they have a strong customer base. These days, with competition as strong as it is, companies must find new ways to attract more customers. As everyone loves a bargain, the best way to do this is by offering reasonably priced cover. Personal finance gurus, take note.
Looking for discounts via a broker or comparison tool is the first place to start, but don’t forget to see if your employer or associations you belong to entitle you to reduced cover.
Opt For a Higher Deductible – One of the easiest ways to lower your annual premium is by opting for a higher deductible. This can have a considerable impact on the amount you pay. It is important to be certain that you can cover the cost of claims below this figure if anything should happen, however.
Another bonus to having a higher deductible is that your premiums will not go up if you are in a position to cover small claims.
Consider Improving Your Home – By investing in moderate improvements to the structure of your home, or modernizing the plumbing and electrics, for example, you can avail of lower premiums. For those that live in older houses, spending some money on taking your property into the 21st century will make it safer in the eyes of the insurance company, which means lower premiums as a result.
Remove the Unnecessary Features of Cover – If you are certain that there are parts of your policy which you don’t require, ask to have them removed. In the case where you have the option of reducing your policy to a basic one, then cut out what you don’t need.
Simply opting out of cover you don’t need can save you serious money on your premiums.
Combine Building and Contents Cover – By taking out policies for property and contents cover together, many insurance companies offer discounts. Sometimes these deductions can be up to as much as 20%, which can really help if you are on a mission to save or just simply adapting to a more frugal lifestyle.
Speak with a broker or use a comparison tool to see just how much you can save if you opt to combine both policies.
When it comes to property insurance, it is always best to shop around to gauge what the standard is for the cover you need. By factoring in a few tricks of the trade, you may very well end up paying much less than you think is possible.