Uncertainties and surprises in life can either bring us joyous possibilities or test our ability to manage the crisis. While you cannot control the unpredictable part of your life, you can take positive steps to put yourself in a good position to manage the uncertainty. An important part of making yourself financially ready to manage any surprise is by taking a home insurance. After all, your home is your most valuable and costly asset, isn’t it? But, many of us are reluctant to avail a comprehensive home insurance cover because of the premium costs. However, you can reduce the premium costs by being informed about the discounts that come with home insurance. Here’s more information on how to minimize premium costs without compromising on your protection and coverage.
- “Safe Home” Discounts
Many insurers offer discounts on home insurance premium if your home has safety devices like burglary alarm and fire alarm installed. By installing these approved safety devices, your home will be well guarded against accidents and you will also get a hefty discount on the home insurance premium.
- No Claim Bonus for Home Insurance
Many insurers have come up with the concept of offering discounts on home insurance premium if no claim was filed in the previous year. Check with your insurance provider if no claim bonus is offered for home insurance policy and also be informed about the difference that it makes on the premium costs as the years progresses.
- Find the Right Coverage
The first step when you are planning on purchasing a home insurance policy is to assess the coverage that you need. Examine if you want to insure only the structure of your home or the contents or both. Also, depending on if you are homeowner or a tenant, many insurers offer customized policies. Opting for just the right amount of coverage will help you lower your premium costs.
- Location and Area of the House
Discounts may be offered depending on the area and location of your property. Select insurers offer discounts if they find that your house is in a gated community or is near to a fire station. If your property is situated in a geographical area that is not prone to natural calamities like earthquake or flood, your premium might be substantially less.
- Age of the House
Few insurance companies offer discounts on home insurance premium for new properties. This is because of the reason that new properties have new wirings, roof and other fixtures.
- Age of Insured
Discounts are offered based on the age of insured. People above the age of 60 and retired customers are offered discounts because they tend to spend more time at their home and will be able to detect a hazard in the making - a pipe break or a gas leak and avert it.
The above list describes some of the common discounts offered on home insurance. Do enquire with your insurance provider to find more about the discounts that you are entitled to. Also, make sure that you are well informed about the home insurance policy inclusions and exclusions . This will help you file a claim without any hassles in case of an accident.