Property is a prized possession, and to secure it from unexpected defects in the event of fire, flood, earthquake, etc. getting a home insurance is always necessary. However, if your existing health policy is exhausting your monthly income, listed below are a few sure shot ways with which you can control your home insurance costs:
1. Shop around: The decision of buying a home insurance policy should not be taken in haste. Instead, you must explore and make a list of insurance policies that are being offered by various insurance providers. You may also get insurance quotes online to estimate the costs of different policies. Choose a reliable company from which you can buy the comprehensive home insurance plan that suits your needs, and of course, your budget.
2. Increase your deductibles: Deductibles is the fraction of the claim that you have to pay before your insurer pays the claim as per the terms of the policy. The higher the deductibles you set, the lower premiums you will have to pay every month. However, you must set the deductibles as high you can afford.
3. Locate intelligently: Purchase the property in a strategic location but make sure that it is based away from the damage-prone areas. Reason being, if you live in a disaster-prone areas where flood, storm or earthquakes are a common occurrence, there are chances that your home insurance policy may have a separate deductible for such kind of damages.
4. Avoid making small claims: This is the most common mistake that many people make. You exhaust your policy in small claims so leaving no room for larger loss protection. Rather it is advised to deal with smaller issues on your own and keep this policy to protect your home from larger catastrophic losses.
5. Improve home security: To avoid getting your home damaged from little mishaps, it is suggested to increase the security in your home by installing devices like smoke detectors, burglar alarm, etc.
6. Merge Policies with one Insurer: Just like you pool your internet, phone, and TV package, you can also merge your insurance policies with one insurer. Buy your health insurance, homeowners, life, and auto insurance plan from one insurance company and come out cheaper by bundling these insurance products together. You may also buy policies in a package that is less expensive as compared to single policies. It also liberates you from the trouble of policy renewal.
7. Eliminate Unnecessary Coverage: Do not buy the coverage you do not need. Like earthquake coverage is often unnecessary in most zones, do not include jewelry if it is at a catchpenny price etc. Also exclude a land value from your policy. Covering land on which your house is constructed is simply of no use as it is illegally that your land will be stolen or burnt is fire. So to save big, insure the value of your home only.
There are many insurance providers who offer age and profession discounts as well. Some times there are certain discounts for retirees and people with good credit rating. Never eliminate the coverage that is important just to save your money as spending extra on important services will benefit you in the long run.