When a person purchases a new home, the price of home insurance premiums can be a surprise. Without doing your shopping around to different insurers, this price tag can be an expensive start to owning your new home, or adding another investment property to the portfolio. Interested in acquiring top cover and the most competitive price for your home insurance?
Well, if you're taking a proverbial stand and want to do something about those high insurance premiums, you're in the right place. In this section, we discuss some of the many ways you can reduce your premiums.
Most people who have bought home insurance don't even realise that they have a choice between a lower annual premium and a higher excess. When you have a higher excess, you pay a lower annual premium.
For example, let's say a person has a home insurance policy with a $1,000 excess and an annual premium of $850. If the person wanted to, the person could choose a $2,500 excess and a lower annual premium of $750 - this is an example only.
In order to get a reduced premium, you must accurately estimate the value of your home contents and must get an insurance policy that includes the value of those contents. If you underestimate the value, or if you have an insurance policy that doesn't match the actual value of your contents, you may overpay the premium. The other side of this too is that you may be underinsured, which could end up even worse in the event of any unforeseen circumstances.
You can reduce your premium by installing security alarms and other security devices. The more you can do to reduce the risk of burglaries, the better. These devices could include window and door alarms, installed safes and vaults, motion detectors, and more. The (usually) minor costs associated with this can sometimes make material impacts to the overall costs of your premium, and not to forget, comes with the increased benefits of additional security to your property.
As with all insurance policies, there are different risks associated with living in different areas. In some parts of the country (and even in some specific areas of some cities), the risk of fires and natural disasters is higher, while in other areas the risk of burglary is higher.
As with your vehicle insurance, it might be worth looking into different insurance policies depending on where you live. If you live in a rural area and there's a lot of bushfire risk in your area, you might get a lower premium for having a home fire insurance policy.
If you live in a city and you're particularly worried about getting robbed, it might be worthwhile to get a separate home burglary policy. However, if you don't live in an especially high-risk area and you aren't particularly worried about fires or burglaries, your best bet might be to get one home insurance policy that covers everything.
As you can see, there are a number of different strategies you can use to lower your home insurance premiums. Many of these strategies are easy to apply, while others will require a little work on your part. If you want to save money on your home insurance premiums, it's well worth the effort.
Ensura is a team of excellent general insurance brokers with a simple mission: to help people get the right insurance at the right price. Get in touch with us and explore our risk management solutions, so you can gain peace of mind without burning holes in your pockets.
Disclaimer: As with any insurance, the cover will be subject to the terms, conditions, and exclusions contained in the policy document. The information contained on this webpage is general only and should not be relied upon as advice. The opinions expressed in the Blog are for general informational purposes only and are not intended to provide specific advice or recommendations for any individual or on any specific insurance product. It is only intended to provide education about the financial and insurance industry. The views reflected in the commentary are subject to change at any time without notice.
