Insurance tends to be a topic not often shared at a cocktail party. Like taxes, it is a necessary expense and most of us aren’t 100% sure which pays for what, and if there is a way to lower your costs. Home insurance is by no stretch a one-size-fits-all system, so familiarize yourself with what warrants higher costs and premiums and make these small changes to your home to get ahead and reduce that bill.
Secure your fortress
The first thing your home insurance operator will want to know is how you are safeguarding your home. If an incident happens in your home and your windows were not locked or fitted with a preventative measure, such as Crimesafe security doors, then you may find yourself not covered, and lumped with a higher premium going forward.
An insurer will not put their money where their mouth is if you are not prepared to equally protect your asset. Repeated claims will burn a hole in your pocket fast, so make sure you are a desirable candidate that they will want to insure for a reason payment.
Shop around
The average Joe will select an insurer and bank and then probably stick with this provider for life. Why? Well they are doing what they need to be doing, right? Life moves so quickly we are not often afforded the time to sit back, consider the providers and do some market research to find out what else is out there, and what the cost associated is.
Doing your research and lowering your insurance costs might be just what you need so that you can add that extra week at the beach to your holidays at Christmas time. Insurers are a dime a dozen, so make them work for you and make sure you are paying for exactly what you need, and cut the unnecessary bits.
Payment structure
That large annual sum always looks so large compared to that smaller monthly payment. But if you can’t see the benefits of paying the annual sum, than perhaps there is some denial at play. Providers offer a fair discount for annual up-front payment, sometimes equating to almost a free month of home insurance.
Be prepared for the next bill and squirrel away some funds so that you can make that one clean payment, and then enjoy twelve months of no bills that would have totalled more in the end. Many savvy individuals time these payments around tax time, so that you have that chunk of money and can set yourself up for the year and save at the same time.
Update your insurer
You shouldn’t only be hearing from your home insurance provider when they send you a bill. There should be an open dialogue on your behalf to keep them updating on any changes you are making to the interior and exterior of your home. Notifying your insurer that you have new and improved guttering and a new walkway may in fact result in some cost savings. On the other hand, notifying them that you are about to install a huge trampoline in the backyard might actually drive up your payment. Having these conversations early and frequently will avoid any surprises down the line.
Unless you have won the lottery, chances are you are interested in reducing your costs where you can. Home insurance is hugely important so take the time to learn the ins and outs and find out how you can make it work for you, and give you peace of mind rather than a being a hassle.
What are your best tips for lowering home insurance costs?
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