For most people, the home that they live in is the most valuable asset they own. Home insurance is vital to ensure that financial disaster does not ensue if the home is damaged or destroyed by fire, flooding, or criminal activity. Home insurance policies can also protect the contents of the home,allowing you to replace items if your home is burgled. Getting the right home insurance policy means that your most valuable assets will be adequately protected, and by carefully shopping around you can also save money on the cost of premiums. Here are some helpful tips for saving money on home insurance.
Buy the Cover You Need
Your home insurance policy should cover the cost of rebuilding your home if it is destroyed. Do not make the common mistake of taking out a policy for the value of the property's market value as this figure can sometimes be much higher than there build value and you could end up paying more than you need to for your home insurance. A recent survey can tell you the rebuild value of the home, or you can arrive at a more approximate figure by asking the insurer to estimate your homes value based on some basic information and assumptions.
When buying an insurance policy that will cover the contents of your home, try to accurately assess the value of your possessions and purchase a policy that covers the entire amount. Being burgled is bad enough, but finding out that you can only claim for the loss of a fraction of your belongings makes the situation even worse.
Compare Policies From Different Providers
As with all insurance products, you can save money on home insurance by comparing the costs of policies from several different providers. Using a price comparison website is a convenient way of comparing various policies; make sure you have all the relevant information about the value of your home and its contents to hand to ensure that you get accurate quotations.
Consider Your Options
Many banks and building societies require homeowners to purchase home insurance before they will agree to a mortgage arrangement. If your mortgage lender offers to sell you a home insurance policy, step back and consider your options before agreeing. You might be able to save money by purchasing a home insurance policy from another provider that meets the terms of the mortgage agreement.
Reduce the Risk
The size of your home insurance premiums reflects the insurance company's assessment of your property's risk of being damaged or broken into. Although there are some risk factors that you cant do much about, such as living on a flood plain, there are some steps you can take that might lower your premiums. For example, fitting a burglar alarm and making sure you have high-quality locks on all windows and doors could reduce the chance of someone breaking into your home, and may therefore have a beneficial effect on the cost of your home insurance.
Consider Accepting a Higher Excess
You might find it easier to find an affordable home insurance policy if you are willing to accept a higher excess value. The excess is the amount of money you have to pay towards any claim that you make, with the insurance company covering the rest. Purchasing a policy with a high excess is obviously a risky decision, as you will be left with a big bill ifyour home is damaged or broken into, but you might decide that it is worth taking the risk in order to get lower premiums.