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Tips on Finding the Best Home Insurance Deals

It is fair to say that when purchasing any product it is more often than not a good idea to shop around for the best deals. Finding the best deals in home insurance is no different but home owners need to weigh up different factors before choosing the right deal for them.

It is well worth taking the time to get a good deal from the outset. Insurers will offer discounts for a variety of reasons based on risk evaluation, which could range from the type of materials used to build the home or how close the customer’s house is to the nearest fire station.

Here are a few tips and things to consider in finding the best deals:

Test the market.
Scour the internet or phone around to get quotes from insurance companies like Budget Insurance and Old Mutual. It is also worthwhile drawing on other people’s experiences of these companies and getting recommendations.

Reduced Premiums.
Reducing premiums can be done by raising the deductible amount paid towards a loss before the house insurance comes in to play. The higher the deductible amount, the bigger the saving on premiums can be made. In doing this though it critical to ensure the higher deductible amount is affordable.

Also it is worth remembering that buying a new home can lead to a discount on premiums, as there should be less risk of the electrics, heating and plumbing going wrong. Location may also dictate this as the effects of severe weather such as windy conditions on the coast will potentially subject a house to more damage than in the city.

Consider the same company used for car insurance.
Check with the company providing your car insurance to see if they will offer a discount for taking out household insurance with them as well.

Make the house safe and secure.
Ask companies when getting insurance quotes whether they can recommend any security systems for the home. These companies may provide discounts for having a recommended system in place, as well as having suitable locks, smoke detectors and alarms.

Reducing the risk of fire is also important to home insurance firms, and they will therefore look favourably upon households with no smokers living there. If no-one in the household smokes, this can often lead to a reduction in premiums by insurers. This is perhaps another incentive for smokers to kick the habit.

Don’t insure the land.
The land should not be a consideration when buying home insurance. The house and its contents alone are at risk of being damaged through fire or extreme weather as well as theft.

Discounts for retired people.
Some companies will offer home insurance discounts for retired people as they are at home more often, and theoretically more likely to spot fires sooner than working people.

Loyalty rewards.
Staying with the same company for several years may lead to a reduction in premiums after a period of time. Home insurance companies want to keep loyal customers happy and perhaps deter them from taking short term insurance options.

Review the policy regularly.
It makes a great deal of sense to check the home insurance policy on an annual basis. Whilst home improvements may necessitate an increase in coverage, the sale of a valuable item could mean less is required.

Electronic payments.
Many companies charge extra for payments made by post rather than by direct debit. Setting an automatic deduction from a bank account or credit card will save a little extra.

Credit Ratings.
Some companies run checks on individual credit ratings. If your credit is not in good order it may be better to find a home insurance company that doesn’t run such checks.

Replacement Cost Coverage.
This coverage means a payout will be made for the value of buying a new item to replace the one that has been damaged or stolen. Without this insurers will only payout for the existing value of an item, which could turn out to be considerably less than the cost of replacing it. This will require a higher upfront cost, but should a claim be made, accurate compensation will be received.

Insurers of last resort.
Living in higher risk areas doesn’t always mean private insurance cannot be obtained. It is worth checking this out if you live an area susceptible to extremes of weather, fires, crime or terrorism as private insurance will be cheaper than from the insurer of last resort.

Group coverage.
If you are a member of a business association you may be entitled to a home insurance discount. Some associations are able to negotiate a group deal with insurance companies.

 

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