How to Get Cheap Home Insurance
Over the years, the cost of home insurance has increased and most people haven’t even noticed it. The economy took a hit and because of it, people’s finances are down too.
So, we need to watch what we pay and save as much as we can. We will discuss how home insurance works and some tips and tricks to help you get cheap home insurance.
In This Article:
How home insurance policies work
There are three types of home insurance policies, we talk about them below:
It covers the structure of your home. This includes your building fixtures along with the fittings in your home.
As per the name, content insurance covers the things inside your house such as your furniture, technology, etc. This is a great option if you have expensive furniture and electrical appliances in your home.
Combined building and content insurance
This is the combined insurance policy that covers both of the above. By buying this insurance policy you are getting protection for your building structure and the things inside it.
If you are leasing your home or renting it, your building insurance will be handled by the owner but for the content insurance you will have to take care of it.
Tips to get cheap home insurance
Do not buy home insurance from your bank
This is a key thing which most people forget. You are not bound by any form of contract to buy home insurance from the mortgage provider.
Most people are familiar with these people and trust them blindly, hence theys do not think twice before buying the insurance from their mortgage providers.
Stop buying insurance policies from your mortgage provider, because to get cheap home insurance you will have to research. One thing you will need to understand is that familiar banks and mortgage providers will charge you higher premiums for your insurance policy.
Use comparison sites
This is a very important part of buying an insurance policy. To find cheap home insurance you will need to spend some time to find the insurance policy with the best rate.
There are comparison sites available online which let you compare different home insurance policies side by side – helping you to find the best cheap home insurance available for you.
Cutting out extras
Reduce your insurance cost by cutting out extra cover which you do not need. Take a look at your insurance policy and see what it covers. From there choose what you need and remove the ones which don’t require coverage.
Cutting out extra coverage will help you shave up to 20% of your premium. This is one of the biggest ways to help you to get cheap home insurance.
Pay the premium annually
Paying the premiums monthly seems more manageable but paying them annually will help you save more. Monthly premiums have an additional fee, which is not included when you pay them annually.
No claims discount
No claims discount is a great way to save money on your home insurance. Basically, if you do not file a claim for a fixed period of time, you become eligible for a no claims discount.
Some insurance providers like to call it a no claims bonus. This is why it is important to think twice before making a claim.
Adding security systems
There are home insurance providers who reduce the premium price if your home has the latest security system installed. So, check the market and check insurance policies to see what type of security system they prefer.
This is another useful trick to use. You can ask for quotes from different insurance providers for your home. See what their policy will cover and how much you are able to save. Compare the quotes and go with the best one.
Haggle for a discount
If you have the best price, get on the phone with the insurer and bargain for a better discount. It does not hurt to try. Give them your best quote and see if they are able to match it or not. This helps the trouble of switching policies.
If you are not in the mood or do not feel confident, you can get a broker to negotiate on your behalf.
These are some of the best ways you can get cheap home insurance. Share your opinion in the comments section below.