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How to save money on your home insurance premiums

Investing in property, although financially demanding, is by far one of the best investments you can ever make. Whether you choose to buy a house or construct one, home insurance should be an automatic addition to your checklist. It provides maximum protection to your property and saves you from potential losses associated with it.

One of the major reasons why most people hesitate when it comes to home insurance is because of the additional expenditure. There is a concern that it will pile up on the list of monthly expenditures in the form of insurance premiums. But, just like your investment in property, investing in home insurance is the best thing you can do for your house.

Nowadays, home insurance has become a mandatory condition put forward by loan officers and money lenders to loan money for buying or constructing a house. The home insurance premium rates can vary from property to property due to various factors like the age of your house, type of construction, location, etc. Apart from this, there are some additional factors that are also considered as the applicant’s credit history, health condition, smoking or drinking habits, etc.

Although home insurance premiums are unpredictable, here are five ways that can help you save a lot of money on premium rates.

Credit Score Maintenance

The first and foremost factor that comes into play when insurers consider an applicant for home insurance and premium is their credit history. It is mandatory to maintain a good credit score for it will not only help you down on insurance premium costs but also help in future monetary transactions. Bad credit history does not just affect your insurance premium but also eliminates your chances of getting home insurance all together. The best way to keep your credit score in check is to pay your dues on time, maintain a low or zero credit balance and most importantly monitor your credit score regularly.  Another equally important thing to keep in mind is to make sure you report to your relationship managers or the respective authorities of any error immediately to get it sorted and try to cut down your credit expenses to only accommodate your needs.

Increase the Deductible

A deductible is the amount of money a policyholder or homeowner must pay for damage or loss before the insurance company can pay for the amount claimed according to the terms of the policy. The higher the deductible, the lower your insurance premium will be. Insurance providers always advise their applicants to set their deductibles higher to help them save money on insurance premium rates. Further to this, if your property is located in a disaster-prone area, your insurers will provide you with a separate deductible amount based on the location.

New is always Better

One of the major factors that can affect your home insurance premiums is the age of the property. The easiest way to go about this is the newer, the better. Insurance providers are more likely to go easy on the premium rates if the property in question is new for they believe that the chances for a new house to have maintenance problems like plumbing or faulty wires is far less than an old house and most importantly, a newer house guarantees a better and stronger structure.

The Location

Although insurance policies are designed to protect you and your property from any and every potential risk, they would ensure that your house has maximum security and lower the rate of potential risk associated with the house. So, if your property is located in a neighbourhood with a lower crime rate and potential risk, you are most likely to get lower premium rates in comparison to a property in a risky location with higher chances of potential risks like theft, or burglary. The premium rates can be lower for a house located close to a fire station and higher for a flood or earthquake-prone location.

Seek the Same Insurer

If you have two-wheeler insurance from a certain insurer, check for home insurance from the same provider and see if they have a policy that is best suited for you. It is possible that your premium rates could be lowered and you may get a decent discount out of the deal. It is advisable to go for this option only if the cost of multiple policies from the same insurance providers is lower than the two policies from different insurers and if both the policies in question are best suited to your requirements.

It takes a lot of effort and time to build a home, so make sure you do everything you can to protect it with the right home insurance policy with fair premiums!

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