Home Insurance – it is a general term comprising of two different products – The first one being the building insurance to protect the construction of property and the second one being content insurance which protect the movable household objects and valuables.
If you go to buy a home insurance, then you will find a lot of policies which are unequal in terms of area and level of protection. The prices of these policies also differ vastly and thus make it difficult for you to compare the like with like.
So have an idea of what you need to insure and for how much. This will help you in selecting a good deal. Here I present you with some tips for a good home insurance deal:
- Cut the risk to cut the cost: premiums are related to the risk involved with the insured item. If you cut the risk for company, they will cut the premium for you.
- You can take some steps to make your home more secure. Call the insurance company or local neighborhood watch scheme, they will tell you the steps.
- Use level 5 mortise deadlock locks on your doors. Use locks on your windows as well. You can get 10% of your contents insured by company by following this.
- Get an alarm fitted and again get 10% by the company.
- Neighborhoods watch area can be a bonus point for you.
- No claims in history result in a cheaper premium.
- Old age can be a bonus for lesser premiums.
- Do remember to declare any other safety precaution you have taken for you valuables.
- If you have a dog or don’t smoke, be sure to tell it to the insurance company. Some companies reduce the premium amount on behalf of this.
- If there is any discount offered by the company for the new insurer, go grab it by applying as a new insurer instead of getting a renewal.
- Applying online also entails a discount.
2. Pay only for what you need: most of the houses are either under insured or are paying more than needed. Keep the following in mind while getting insurance:
Building insurance only covers the re-build cost of the structure and not the market value of your house.
For insurance of contents, make a list of all the rooms and then the contents in the room. This way you will be able to get a better estimate of coverage needed. Remember to add CDs, videos and clothing as they are generally under insured.
3. Consider buying different policies for building and content insurance. Try different insurance providers for both of them separately and find the best deal.
4. Shop around for getting the best deal. Don’t just stick to an easily available deal, you can meet different agents or alternatively, use internet. You just have to fill simple questionnaires and you will get the quotes.
5. Negotiate and save: every premium has profit margin for the company on which you can bargain. Not all companies reduce the premium but you have to bargain to get to know.
By following these tips for a good home insurance deal, you will be insured adequately can save a lot on your premiums.