Learn more about how to lower or reduce your homeowner insurance and save big with cheap and affordable policies.
Lowering the cost of your homeowner insurance policy would be one of the smartest things to do. By so doing, it would help you save money problems as you channel your finances to other areas of your life.
1. Compare different providers before choosing to buy
One of the smartest ways to lower your home insurance policy today is by checking and comparing between different providers. What I mean is, you should not just focus on one provider. You can purchase a plan from any provider without the need for relying on the one you've already known, especially your bank.
2. Choose annual payments
By choosing an annual payment plan, you increase the chance of reducing your home policy in the long range.
3. Ensure your occupation is clearly stated on your policy
One of the areas that can help lower your homeowner insurance policy is stating the type of job or occupation. This is because insurance companies often pay attention to high-risk occupations and may end up charging you extra if you fail to let them know about the nature of your occupation.
Higher-risk occupations would most likely increase your rate for premiums.
4. Go through your homeowner insurance policy information before buying
One of the areas often overlooked is the policy information. It is better to be sure of what you are paying for and what to expect in the long run. This helps you to plan yourself accordingly.
Policy information helps you to know certain things, including the limitations, what can be covered, and compensation that is included in your insurance policy.
5. Ensure you report claims that are only covered by your provider
This is one of the main reasons you should read the policy information first before buying, and it is because it gives you detailed information about what is covered in your policy.
So before reporting any issue to your insurance policy provider, ensure you do so with the exact policy that is covered on your current plan. This is because your provider will only cover what is available on your policy and not a random issue.
Insurance policy providers already have a database of the policy they provide you with, and reporting what is not included could result in a higher payment. So before you make the decision to buy your homeowner insurance policy, do well to know what is covered in your current plan to avoid extra charges.
6. Avoid multiple claims
One of the ways to lower your homeowner insurance policy is to avoid making multiple claims from your provider. This way, your premium will most likely stay lower in the long run. If you continued to make multiple claims within a short term, your provider could label you as a higher risk and even charge you more.
7. Do not leave your home empty
One of the mistakes homeowners make is leaving their homes empty, especially when they are on vacation or on a long trip. Even if you are on a night shift, especially in places that are isolated, you should employ the services of someone to keep your home safe or invite someone you trust to keep watch over your house.
Keeping someone at your apartment reduces the risk of property theft that could lead to insurance claims in the long run.
In this day and age, you could also employ tech devices to do the job for you. For example, a smart home could simultaneously carry out different tasks for you, from controlling the lights to setting up alarms whenever someone approaches your apartment. Stuff like facial recognition is a perfect example.
Always have someone at your house, especially when you are on long trips away from home.
If you aim to avoid thefts, especially when you are away for a couple of days, weeks or even months, then it is important to get someone to stay over at your place while you are away. The presence of the person would deter people that could try to break into your home or tamper with your belongings.
8. Only insure properties you currently own
This usually occurs when you are about to renew your insurance claim, as there could be properties that are damaged, replaced or sold that are already on your existing claim that would be included during the renewal process.
To avoid insuring properties you no longer own or possess, you should carefully go through your homeowner insurance policy and remove what is no longer in your possession. These properties or items include laptops, desktops, jewellery, and smartphones. The removal of these you no longer own will result in lower payments.
9. Avoid buying additional cover
Try and stick to your already existing claim without the need of getting additional cover, even though it may be a wise decision. However, you should only do this if you want or feel the need to get extra protection for your property and household.
Inasmuch as you are looking forward to lowering your homeowner insurance payment, getting extra cover is always worth it, and this is because you could run into a situation where you urgently need to fix something you just damaged, like accidentally spilling liquid on your phone or laptop or even a damaged bike.
However, the best approach, especially if you've got additional items that are expensive and would most likely result in higher rates, is to specify them to your policy providers and pay for them upfront in case of eventualities.
10. You should combine your content and building cover in one plan
Buying two separate policies will likely cost you more in the long run. Instead, combine them into one policy and purchase it at the same time from the same company.
This method will help you manage your entire policy in one piece and save you money. You can talk to your company about the idea of combining two or more policies as one package so that you can seamlessly manage and save big from it.
11. Have a near-perfect estimate for your belongings
A prudent way to do this is by comparing the value of your belongings with today's rates. You should try and calculate the cost of everything you own at the rate of the replacement.
But here's the catch: you should be careful enough not to overestimate the value of each item you own to avoid attracting a higher payment from your provider. At the same time, you should also avoid underestimating your belongings to avoid receiving a lower payout that may not cover the cost of replacing them.
This aspect of reducing your home insurance policy is very tricky and requires careful consideration and planning from your end. If you do it correctly, you will save big on your policy in the long run.
12. Ensure to include the belongings of your children who are adults
If you have children who are adults and currently live under the same roof as you, it is easier and better to include their policy with yours instead of buying a separate policy for them.
Especially if they are in college or university, it will prevent you from buying additional student insurance for them. This way, you can easily save and manage your policy with ease.
13. Regularly carry out maintenance for your house
Keep your home in good shape by regularly carrying out maintenance activities, from fixing a leaky roof to removing blockages on channels. Your home is an important asset in your possession, and you must treat it accordingly.
When you fail to maintain your home, you increase the likelihood of paying more. For example, a leaky roof that remains unfixed over a long time would result in a higher replacement cost. If you've also avoided fixing your damaged wiring, it could lead to even greater damage in the long run.
Ensure you prioritise taking care of your home and belongings from time to time to avoid paying extra as a result of damage.
Note that taking care of your home does not only lower or reduce your homeowner insurance policy; it reduces the likelihood of causing accidents.
Some of the things you should look at when maintaining your home to avoid higher payment from your provider
*Roof: Inspect your roof from time to time, as this would help you identify problems that may lead to severe damages.
*Leaks: Leaks could come from the roof, pipes and gutters, etc. Ensure to inspect and fix them immediately.
*Electrical systems: Damaged electrical systems that are not fixed or replaced may lead to even greater damage or incidents in the long run. For example, faulty wiring or bare conductors exposed to dust could cause a bridge that would lead to sparks.
*Gutters: Regular cleaning of gutters helps in keeping the structure strong and boosts your overall health and wellbeing.
*Pipe: Insulating water pipes keeps them from damage caused by exposure to the atmosphere. Some providers may not provide coverage for this in the case of eventualities.
14. Activate a smart home
When I talk about a smart home, I am not referring to the ultimate smart home that could come to your mind. What I meant is having a home that connects to your phone.
That is, you could install special security apps that would control the light and heating system by using your smartphone as a controller. This comes in handy for you and helps lower potential theft.
15. Calculate the rebuild cost of your house or home
It is important to accurately calculate the rebuild cost of your home. You could do this by reaching out to a surveyor. Calculation for your home will be made easy if it was built using materials like bricks, stone walls and wood.
However, you should have it in mind that your calculations should not be higher than normal, as it could result in a higher premium payment for you. At the same time, your calculations should not be lower to avoid loss during premium payment.
An impressive tool you can use to calculate your property rebuild cost is the BCIS Rebuild calculator, especially for those in the UK. You could also use other tools if you want.
16. Try to avoid double-insuring your gadgets
Before you buy any home insurance cover, always be sure to read the policy first to know the items that are covered. Many packages out there include every property you own, including your gadgets such as laptops and phones.
So if you have an insurance policy for your smartphone, watch and laptops, you should exclude this on your package. This will eliminate double coverage and help you save big on them.
Remember, if you already possess coverage for your gadgets, it won't be necessary to include it in your homeowner insurance policy.
17. Add coverage for contents that are not necessarily for your home
Let's just take a look at this scenario: you travel from the U.S. for five days and return on the sixth day with a separate policy; you will have to pay for it with your provider. However, if you include this in your current premium, you get to spend less and save time.
In essence, you should add content like a travel insurance policy to your already existing claim without the need for a separate plan that would cost you more. This is good for short trips like the scenario I painted in the above statement. Adding other content to your current plan saves you time, management and money.
18. Try installing a burglar alarm system for your home
A safer way to keep your belongings safe while you are away is to install a burglar alarm system. This would scare away people who try to break into your home. This would be effective when you set the alarm when you are going out instead in order to lower your claim.
You can configure the alarm in such a way to cover different areas of your home, especially the outside walls.
If you want to lower your premium payment when it comes to installing a burglar alarm system, you should go for the best that includes a monitoring system.
19. Ensure to install a proper lock system
One of the ways to avoid theft that could lead to higher premium payments is through the installation of a quality and reliable lock system on your doors and other accessible areas.
This is important, especially in the exterior or external sections (doors) of your home that would make it difficult for intruders to access your home without permission. It could range from manual locks to electronically controlled lock systems.
To do this, you should acquire a strong metal lock at the tools shop closest to you and hire a professional to do the job for you. This is important, and you should take it seriously.
20. Increase your voluntary excess
Another way to reduce your home insurance cost is by increasing your voluntary cost. However, you should be prepared to cover the excess cost that comes with it, especially when it comes to making a claim. To ensure you are not affected, you could separate the total excess amount elsewhere.