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Buy Home Insurance before Premium Increases

You put a lot of thought before buying a home. It is one of the biggest dreams of human’s life. You inspect about everything, whether it is the size of the land, location of the house, number of rooms, design or the amenities offered by the society. You put all your savings into buying that home where you plan to live the rest of your life with your family.

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When you finally get your home ready and start living in it, you get a home insurance in order to protect it from any mishappening. The factors that you consider before buying that home and those factors play a vital role in the premium of the home insurance policy you purchase. So, why is it that Home insurance premium increases every year? Let us tell you.

Reason behind Increment in Home Insurance Premium

This might come as a shock to you but it is not for the first time but Home insurance premium increases every year. The factors responsible for the increment in the premium of your existing home insurance policy are as follows.

Increased Value of Property

It is a well-known fact that when you buy a home, the value of that property increases every year. The increment in the value of the home depends of the added investment you made. It can be related to the beautification of your home or installing something new like modular kitchen for example. This increases the value of your home in the market and with these upgrades the premium of your home insurance increases.

Local Crime Rate

When the insurer calculates your premium, they look at the crime rate in your locality and how likely you’ll become a victim of theft and vandalism. If the crime rate in your locality has increased over the past few years then your insurance provider will increase the premium of your existing home insurance plan.

Increment in Inflation

The inflation increases when your insurance provider increases their rates. This happens because the value of the content of your home will cost more than last year. The insurance industry adjusts the rates according to the index of consumer price for measuring inflation. It becomes one of the biggest reasons in the increment of the premium of home insurance.

Now that you are aware of the reason behind the increment in the premiums of home insurance, let us tell you about the ways that can help you keep your premiums as low as possible.

Tips to keep Home Insurance Premiums as low as Possible

As we have told you about the reasons behind the increment in the home insurance premiums and once you become the policy holder you’ll have to deal with the inflation in the premiums every year. Here are some tips to keep your premiums as low as possible.

Keep a Good Credit Score

Keeping a good credit score helps with everything. It is taken into consideration by almost every insurer now-a-days to check the buyer credit history. If you’re credit history is smooth it will most likely keep your home insurance premium low. In order to keep your credit score healthy try to keep your credit balance as low as possible, keep a track, make sure of timely payments etc.

Thorough Research

Buying a home insurance plan can be a hectic task sometimes, but there are hundreds of insurance providers who off offer luring options. You should just sit on your computer with internet access and get to know all the details related to the policy and there are such user friendly websites which even lets you compare among different plans at one place and make the job pretty easy. Since it becomes this easy you should do a thorough research and then choose the plan best suited to your requirements.

Better Security is a Plus

The level of security you keep in your home reduces the premium rates. CCTV cameras, smoke detectors, sprinkler system, anti-theft alarming system etc. keep your home secured and helps in reducing the premium. However all these security systems won’t get you a discount on the premium hence it is advised to you to check for the devices that can earn you a discount and understand how much can your home insurance plan save you.

Beneficial for Old & Loyal Customer

Being loyal towards someone or something always pay, if you’ve been a loyal customer to your existing home insurance company then you’re most likely to save in your premiums. Let’s just say that you’ve been a policy holder of one company for 3-5 years and as those companies provide discounts and offers for the old and loyal customers every other year, then you can have the benefits coming with those discounts and offers and they might help you keep your premium rates as low as possible.

Conclusion being!

Since purchasing a policy is the first step so it is advised that you should prefer buying your home insurance policy online after doing thorough research and check for the discounts available. Inflation is the basic reason behind the increment in the premium rates of home insurance policies so it would be a better idea if you buy a home insurance policy as soon as possible. Sooner the better.

Written By: PolicyBazaar - Updated: 30 September 2021
Disclaimer: Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by an insurer.
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Reviews & Ratings

4.4 / 5 (Based on 120 Reviews)
(Showing Newest 10 reviews)
Bokaro, July 26, 2022
Coverage for natural calamity
I was looking for an insurance policy that provides me coverage for natural calamity. Since my house is located near a river and it floods my area in the rainy season. So i went on the Policybazaar website and particularly look for this coverage found the exact plan that provides this coverage.
Bilaspur, July 26, 2022
Premium Calculation
I was looking for a home insurance policy online. I stumblled upon the Policybazaar website and it is one of the best online platforms to purchase home insurance policy. I learned about the insurance plan i wanted to purchase and after choosing the plan and add ons i could calculate the premium using their online premium calculator. Thanks Policybazaar.
Bikaner, July 26, 2022
Natural Calamity cover
I have recently purchased a flat and wanted to cover it with a home insurance policy. I was aware of the Policybazaar website so i thought i should give it a try. I went on their website and as i wanted to cover my flat with a natural calamity cover specifically i searched for it and without wasting a minute it showed me the natural calamity coverage.
Amritsar, July 26, 2022
Enough coverage
I was looking for a home insurance plan online. I was fed up as i have to visit different websites to look for a single suitable insurance plan. However, i stumbbled upon Policybazaar website where i was able to find the right insurance plan that could provide me enough coverage.
Bareilly, July 26, 2022
Nice customer service
I wanted to purchase a home insurance policy and a friend of mine suggested to purchase it from Policybazaar. I bought the policy and after that i had a confusion regarding exclusions so i called up Policybazaar customer care and they cleared out the confusion and i loved their customer service.
Ajmer, July 26, 2022
Qiuck claim
I purchased a home insurance policy recently. However, due to a natural calamity, my house was damaged as the pressure of the water because of flood broke the enterance door of my house. But the insurance plan that i bought got me covered and i as able to get the quickest claim possible.
Delhi, July 26, 2022
Natural calamities covered
I bought a home insurance policy recently. As i live near a river and in the rainy season, my area gets flooded so in order to protect my house and its contents, i purchased the insurance to get coverage for such natual calamities and i am tension free now.
Kolkata, July 26, 2022
Wide coverage
The home insurance plan that i purchased from policybazaar's website is a great plan that provides me coverage for not only the structure but also cover several expensive content of the home such as paintings, mobile phones, laptops, television, etc.
Ahmedabad, July 26, 2022
Suitable insurance plan
I purchased the group health insurance policy from Policybazaar website. First of all, i did not have to wander much online while lookig for a home insurance plan that fits my requirement and i found the suitbale home insurance plan by comparing different plans on the website.
Amritsar, June 09, 2022
Natural calamities covered
I bought a home insurance policy recently. As i live near a river and in the rainy season, my area gets flooded so in order to protect my house and its contents, i purchased the insurance to get coverage for such natual calamities and i am tension-free now.
  • Disclaimers+

    #Savings of 28% are based on the comparison between the highest and lowest premiums for a pucca building with sum insured of >₹ 1 crore at Delhi, for property age less than 5 years and policy term of 11 years.