Reducing Home Insurance Costs Without Compromising Protection

Our home is generally our most valuable possession and one that we want to protect with insurance. Moreover, it is generally a condition of the terms and conditions of a mortgage or home loan that the property be properly insured. However, most home owners want to know how they can obtain home insurance at the best value.

Go to an Insurance Broker, Who Will Shop the Market

Your Insurance Broker will obtain quotes from multiple insurance providers to find the most competitive rates. They will save you the bother of contacting multiple insurance companies. They will make sure to compare coverage options as well to ensure you’re getting the protection you need.

Increase Your Deductible or Excess

A deductible or excess is the amount you pay out of pocket before your insurance coverage kicks in. By opting for a higher deductible, you can lower your premium. However, ensure you can comfortably afford the deductible amount in case you need to make a claim.

Bundle Your Policies

Some insurance companies may offer discounts if you buy multiple policies with them, such as home and motor insurance. Inquire with your Insurance Broker about whether this is an option for you, to reduce your overall insurance costs.

Improve Home Security

Installing security systems, burglar alarms, smoke detectors, and deadbolts can make your home safer and potentially lower your insurance premiums. Inform your Insurance Broker about these features to see if you qualify for any discounts.

Maintain a Good Credit Score

Insurance companies often consider credit scores when determining premiums. Maintaining a good credit score demonstrates financial responsibility and can lead to lower insurance costs.

Review Your Coverage Regularly

Ensure your insurance policy accurately reflects the value of your home and contents. Discuss this with your Insurance Broker to ensure that you understand what is included in home and what is included in contents coverage. Periodically reassess your coverage needs to avoid over-insuring or under-insuring your property. Adjusting your coverage appropriately can help reduce costs.

Ask About Discounts

Inquire about available discounts with your Insurance Broker. If you do not ask, you do not get!  The Insurance Broker may know that your insurer may offer specific discounts based on factors such as age, non-smoking household, or membership in certain organizations. Additionally, some insurers provide discounts for installing certain safety features or having a claims-free history

Maintain a Claims-Free History

Avoid filing small claims if possible, as frequent claims can (and probably will) lead to increased premiums. Save your insurance claims for major incidents and handle smaller repairs and expenses on your own.

Consider the Location and Construction of your Home

Certain factors, such as proximity to a fire station, or the use of fire-resistant materials in construction, or proximity to a river known to flood, can influence your insurance costs. If you plan to buy a home, consider these factors in your decision-making process.

Review Your Policy Annually

Review your policy annually with your Insurance Broker to ensure you are not paying for unnecessary coverage, or missing out on potential discounts. Changes in your circumstances or upgrades to your home might qualify you for adjustments to your policy.

Remember, while it is very important to reduce costs, it is equally crucial to maintain adequate coverage for your home. Balancing affordability with the level of protection you need is key when optimizing your home insurance policy.  Speak to your Insurance Broker if you need advice on any element of your home insurance needs.