Purchasing your New House? You are already making the best investment decision and adding home insurance to it will keep your biggest investment protected. A small premium amount should not be counted as an expense when it can save your new/old house from any potential risks or dangers.
However, it is a mandatory requirement to take home insurance if you are taking a home loan. Another option is to either purchase from a lender (from where you are taking a home loan) or buy a comprehensive policy for home insurance online.
There are multiple factors affecting the cost of insurance like the age of your house, its location, type of construction, etc. Along with personal factors like the age of an applicant and their credit history, etc, there is no fixed premium for all. The premium rates differ from company to company and type of policy, but there are few factors that help to lower your home insurance cost and save a fortune.
- Good Credit Score
Maintaining a good credit score and repayment track can easily help you get good rates and negotiate better rates.
- Increase the Amount of Deductible
Increasing the amount of insurance deductible will lower your premium amount but the chances are that in case of an unforeseen event, you might have to pay from your own pocket first during the claim and the rest would be given by the company.
- Talk to your Agent
New offers keep coming; you just have to enquire with the different agents to know about them. There are many discounts for senior citizens, employers (group insurance), referrals, etc. You get to know only when you inquire, so make sure you inquire every month to know about the offers available in the market or ask your agent to call you if they come up with some new offers.
- Research Online
It’s always better to do a little research from your side. Finding the better deals on home insurance online can help you get better rates. Also, you can subscribe to many insurance companies to get offer updates in your mail.
- Good Home Security
If your home has hi-tech safety security systems like impact windows and doors, alarms, heat/smoke detectors, deadbolt locks, sprinkler systems in case of fire, there is less chance of burglary, theft, or damage through fire. So in such a case, your premium can be lower.
You can also enquire about security devices that can earn you a discount.
- Loyalty discount
Being with one company for long and if you have many other policies or family members policies under the same company, then you can ask for better rates if you are about to renew insurance for property.
- Earn a no-claim bonus discount
If you are about to renew insurance for the property, you can ask about a no-claim bonus as it will help you get lower rates as a reward for not making any claims in the previous years.
- Age of the House
New House is considered less likely to have problems, so when it comes to buying a home insurance policy, there is a chance you might get lower rates compared to while renewing insurance for the old property.
- Location of House
If your house is located near a fire station, it will help you attract a lower premium, while a house located in a flood-prone or where thefts are common will have chances of a higher premium.
All these small tips might help you to save a fortune on your home insurance premium. Besides, if you are planning to buy a home insurance policy online then pick the right insurance company where the house valuation is done correctly. Getting comprehensive home insurance that includes all your belongings and good coverage is easy.
As we all work hard every day to earn money to build a dream home so why not protect it for life-long with a small premium amount every month?
