Whether you are a first-time homeowner or are planning to downsize, there is a lot to consider when purchasing a new house and once you have found your dream home, the last thing you want to worry about is the cost of house insurance. Well, do not fret as we are going to list some of the best money saving tips to help you get the right house insurance at the right price.
Skip The Bank if Possible
If you have committed yourself to set aside a huge down payment or have access to your savings, then you may want to consider picking a less expensive house an go mortgage-free. This is a move that will attract a discount from the insurance providers and also help keep some extra money in your pocket.
Newer Is Better
If you have the choice between a newly constructed and an older home, it is important to keep in mind that insurance providers offer discounts to newer houses. It is understandable as new builds tend to come with some kind of warranty and repairs are not normally an issue for the first several years. That to an insurance provider means fewer claims.
Settle for a Higher Deductible
Deciding to pay a higher deductible in case of a claim is one of the easiest ways to reduce your premiums. It works like a seesaw: the more you pay as a deductible, the lower the insurance rates. However, do not abuse this tip and choose a deductible that you will have a hard time paying in case anything happens to your house.
Almost every insurance company offers incentives to repeat clients. So, consider buying your house insurance and car insurance policies from the same provider to take advantage of the incentives.
Sometimes, Less is More
Yes, you are all excited about your new house purchase and want to ensure that everything inside it is protected. The key to saving money on home insurance is to ensure that it is not over-insured. Take the time to consider what kinds of coverage you need and do not need and pick accordingly. For instance, if you just have €40,000 worth of possessions, you do not need €80,000 of contents coverage. In order to figure out the right amount of coverage, you should consult a reliable and qualified home insurance broker.
Keep Claims to a Minimum
You want your house insurance policy to cover you when you really require it, but it is worth noting that most insurance providers give discounts to those who are claims-free for a particular period. So, if you have a low-value claim, for instance, it is worth to consider whether it is really worth filing, or if it is best to pay for minimal damages and losses in order to keep your claims-free title.
Make Your House More Resistant to Damages
Undertaking home improvement projects can help you save on premiums. Installing a backwater valve or sump, for instance, could reduce the chances of filing a water damage claim, and so, it will generally reduce your premiums as well. So, make your home as damage resistant as you can.
Embrace Your Age
There is no denying the fact that insurance providers like mature homeowners. That’s because they tend to be more established financially and past the wild party or damage inducing days. If you are 45 and over, do not hesitate to ask for a discount on your home insurance.
Use a Broker to Shop Around
Why should you pay more than you have to? An insurance broker will listen to your insurance needs and look for coverage options at different prices for you to pick from. They can also help point out other areas to get discounts and opportunities to save money that you may not know about. There is also no upfront cost for the initial consultations either, so do not hesitate to look for a reliable broker.
Spreading your premiums monthly may appear more manageable, but it is always more costly as you will be charged an extra admin fee. Learn more!
Secure the Perimeter
You could also avail a self or company monitored security system to ward off intruders. A security system helps reduce the chances of theft and damage and most insurers will reward you with a discount for that effort.
Here are a few other security tips for your house that will help lower the cost of home insurance:
Make friends with the neighbours- You can ask them to open and close the curtains while you are away, check for deliveries and even turn the lights on and off. This will help give the impression that you are at home when taking that vacation.
Pick a security system that meets your needs. As mentioned above, there is a huge array of security systems from those that go off when tripped, to those that alert the police of attempted break-ins. Some are even advanced enough to help you control the lights even when not at home. If you travel a lot, the latter might be worth considering. Picking the right system also depends on where you live, how much you are willing to pay as well as the risk of burglary. Keep in mind that some insurance companies will not cover you if you don’t have the right system for your region.
Extra Security. You should ideally consider door chains, window locks, security lights, and burglar alarms. There is a huge array of security options to put your mind at rest and so, it is imperative to do your homework.
Utilize a Locksmith. A reputable locksmith can give a professional opinion on the type of locks that are ideal for your home. This is especially important if you are a landlord. You need to provide a secure lock to external entrances according to the law, so seek advice.
CCTV. If you are particularly worried about your security, this might be an option. However, you will need to warn people about CCTV and ascertain they are used properly.