In everyone’s life, the home is an essential asset, as we all invest our lifetime earnings to own a house. The purpose of this insurance is to protect your house from any type of damage. To protect such a big investment, you also have to pay a handsome amount of money. If you will just take a normal plan with a low premium then it will not cover all the damages and in the end, you are left with bare hands. So, it is important to take the right amount of sum insured along with keeping your basic requirement on priority.
If you will decide a minimum amount that is required for optimum safety, then you can look into the policy to cut costs. There are a number of ways to lower down the premium amount.
If we assume that the net worth for a house is 2 Crores rupees for this house then the payable premium amount is near about 60k. However, this premium amount will vary for different places. Like for the places with a high risk of natural disasters the premium is higher whereas on plains the amount is lower. Further the price will continue to increase every year.
By considering below points you can save a handsome amount on your homeowner insurance:
Get Multiple Quotes:
The best possible option to get quotes is online. There you can also compare multiple plans to get a better idea about the provided benefits. However, you have to do a lot of research work for this, it might be possible that you are not able to get the term mentioned online. So, if you have some experience or you have already searched for online quotes then it will get easier for you.
The second and common option that nobody should skip is to consult with your friends and relatives. A Homeowner Insurance is everyone’s requirement so while checking for quotes you should also consider the references of your relatives. If they are already having an insurance policy then ask them about the service of that company, Are they happy with the service or not? How much do they have to pay apart from the premium amount?
The third way is to go for an independent insurance agent. He will look for a policy on your behalf as per your requirement. But the problem that will arise here is, the insurance agent is an independent worker and he can provide you information or data of a single company. So, if you have already decided for the company then this is the best option to get quotes in no time.
Check for High Deductibles:
Deductibles are some percent of the total sum insured amount of money that the insured person has to pay while making a claim. At the time of claim., first you have to pay the deductibles then after the insurance company will take the charge and pay the rest amount. If the deductible is high then you have to pay a low premium.
Mend up your Credit Score:
A credit score plays an important part in deciding the premium amount. Any insurance company can predict your losses just by your credit score. The credit score steadily decreases if you take any claim. So, you have to maintain your credit score to get discounted rates on premiums. If your score is low then try to maintain your score by not taking frequent insurance claims.
Make sure to look for enough coverage:
While cutting down for cost don’t remain undercovered. Cutting cost is good for your pocket but along with that, you have to also maintain your coverage. If you are taking the same coverage from the last 5 years then it’s the time to look for a change because in 5 years the cost of labor and material must also get increased. So, if you have to repair your house after 5 years of purchasing the policy then it is confirmed that the insured amount will not fulfill your requirement and you have to pay a good amount of money from your pocket. So, it is necessary to upgrade our policy every year by taking the help of an agent. An agent will help you to fulfill all your requirements by paying no extra cost.
Think about Renovations:
If you want to do any renovation work in the house then do it prior to taking the policy. If your house is in good condition, has proper electrical wiring, no water leakage, no demolition in the roof, then the insurance premium will be decreased. So, if you are thinking to renovate your house then consult your insurance agent about a decrease in insurance rates.
Main factors that affect the cost of Homeowner Insurance:
An Insurance company will keep various things on the list while deciding insurance premiums. These factors either increase or decrease your premium amount. So, you have to take a check of the location of your house, whether it is made in flood, landslide or any other natural disaster-prone areas or not. If yes then you have to pay extra charges because you are at higher risk of taking claims.
Having a fire department near your house is necessary. If in case any fire hazard happens then it will take less time to call a fire vehicle and cause less damage to property.
The construction material used for making the house also plays a vigorous role. If your house is made of wood then it gets easily damaged but good quality concrete material can withstand high pressure.
For how long you have been living in this house and didn’t renovate it? If there is any crack in the house or you have not renovated it for too long then the building structure gets weak and gets damaged with any minor cause. Leakage in roofs or pipelines will loosen the concrete and make the house riskier to damage. Too many claims taken in the past will also increase the premium. So, you have to keep all these points into consideration while taking any homeowner insurance plan for your house.