How to reduce home insurance premiums?
HOME INSURANCE is a type of property insurance that provides cover for your house against risks like accident, damage, or theft. A house is one of your most valuable assets and any damage caused to your house either due to natural calamities like earthquakes, cyclones, and floods, etc. or due to manmade disasters like thefts, robbery, etc. can make your house unlivable. If your house suffers from damages, rebuilding it or refurbishing its contents will be both difficult and tedious. Home insurance ensures that you are not exposed to extensive liability even if your house is damaged due to any unexpected happenstance.
Importance of Home Insurance
Some of the major causes which make home insurance important can be listed below.
Home insurance will help in providing cover against liabilities, which might arise due to the damages caused to you, to guests or third parties while residing in your house. This protection is essential as it will safeguard you against any legal problems.
Along with cover for the building of your house, many insurance providers include features that help in providing cover against any damages which are caused to the valuable contents of your house.
If you stay in a rented house while damages to your house are being repaired, then these expenses will be covered under the home insurance.
Many banks and financial institutions prefer giving home loans only to those who have home insurance and this is also one of the major eligibility criteria while sanctioning a home loan.
Ways to Reduce Home Insurance Premium
Here are a few ways to reduce the amount of premium you pay for home insurance:
Maintaining a good credit score
A good credit score is an important eligibility criteria when insurance providers decide your premium. The higher your credit score, lower the premium of your home insurance. Keep your credit balances low, reduce your credit utilization ratio, and pay all your bills and EMIs timely to improve your credit score.
Bundle up insurance policies
If you purchase home insurance along with some other insurance policy such as a vehicle insurance policy from the same insurance provider, then you are likely to receive a discount on the premium.
Increase the amount of deductibles
A deductible is an amount that has to be paid by you for any loss/damages to your house before the claim is settled by your insurance provider. Usually, the higher your deductible amount, the lower your home insurance premium will be.
Proper research and inquiry on discounts
It is essential that you do proper research about the various insurance providers, insurance policies they are offering, discounts on the premium being offered, etc. This will help you in obtaining a good home insurance policy with high coverage and low premiums by comparing various policies on offer.
Home safety gadgets
If you have installed home safety gadgets in your home, then the chances of burglary or theft in your house reduce. Due to this decreased risk, your home insured premium will also reduce.
Hence, home insurance is important for both homeowners and for those who live in rented houses as well. It is necessary to understand your requirements, do thorough research, and follow these tips while purchasing your preferred home insurance policy.
Disclaimer:The above information is for illustrative purposes only. For more details, please refer to policy wordings and prospectus before concluding the sales.