3 ways to control rising premium for home insurance
You opt for renewing your home insurance policy and are surprised to see revised or rather increased premium rate. Yes, this happens and baffles a lot of us. How can the premium keep on increasing for the same home? Well, there can be a series of reasons why home insurance premiums increase:
- Low credit score: Your credit score plays a very important role in deciding the home insurance premiums. So in case you have missed a few payments and messed up your credit score, this will reflect in your revised premium rates.
- Claims history: If you have made a lot of small claims in the past, then also your home insurance premium rates might be increased by the insurance provider.
- Rising crime in your area: The trend of crime also impacts the rate of premium charged by the insurance providers. So if there is an increase in the rate of crime, then it will impact the rate of premium.
- New Risks: If you add more value to your home, then also the premium rate can rise as home insurance doesn’t just cover the value of land but also the value of your home. By adding value we mean that if you renovate your home, redo the interiors or construct something such as a swimming pool.
Can you do something to control the rising premium? Well, the good news is that you can. Here are 3 ways in which you can control rising premium for home insurance.
- Increase Your policy Deductible: In simple terms, insurance deductible is the amount that you are willing to pay or can afford to cover in case of damage, before the insurance company starts paying on the claim. All claims with a value less than equal to the deductible shall be solely borne by the insured. Any amount over the deductible is payable by the Insurance Company. If you increase your insurance deductible, you will not be making each and every small claim, which will considerably keep a check on the premium rates.
- Improve your credit score: A healthy credit score assures the insurance provider of your payment capacity and thus they charge average home insurance premium. Make sure you don’t miss any EMIs, don’t charge close to the limit of your credit card, don’t open too many credit accounts, maintain a healthy balance in your account and pay all your bills on time.
- Check the risk factor of your home: More the risk, more the premium. This simple formula can help you keep your home insurance premium in control. Make sure you maintain your home properly, get wiring checked regularly, ensure the security of your house by installation of CCTV camera, 24*7 Security guards etc., keep valuables like jewellery etc. in the bank locker, and most importantly protect your house with one or more fire fighting facility. When you make your home more secure, then you can keep a check on the home insurance premium rates.
With HDFC ERGO, enjoy the innumerable benefits of hassle free home insurance. With cashless claims, 24X7 assistance and cheapest premium rates, HDFC ERGO can be the perfect guard for your cherished home.
Disclaimer:The above information is for illustrative purpose only. For more details, please refer to policy wordings and prospectus before going ahead with the sales.
To know more buy and explore home insurance plans and its benefits click here