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11 Ways to Save Money on Your Home Insurance Premium

Buying a house is one of the most significant investment decisions as it involves huge costs. Therefore, it is necessary to purchase home insurance that can financially assist you in case of any unforeseen events. As a home insurance customer, you must look for ways to keep your home insurance premium as low as possible. Read this article to learn how to save money while buying home insurance.

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Why Do You Need a Home Insurance Policy?

A comprehensive home insurance policy covers the loss specified in the policy documents, including theft and burglary. As Indian households keep several valuables, investing in a home insurance policy makes more practical sense. It covers a variety of risks, such as physical damages, damages due to any natural or man-made disasters, damage due to war, and loss due to burglary or theft.

How to Save Money on Your Home Insurance Premium?

While insurance rates might hike with time, a few tips exist to reduce the home insurance premium. You can incorporate these to reduce the premium amount and the risk. To get you started, here are 11 simple ways to save money on your home insurance premium:

  1. Maintain a Good Credit Score

    In India, several general insurance companies consider an applicant's credit history for deciding the premium. They use a credit score to determine your home insurance premium rates. Therefore, a healthy credit score will reduce your insurance premium costs. In contrast, a bad credit score could lead to paying a higher premium or even lessen your chances of obtaining a home insurance policy. You can improve your credit score by paying your bills timely and avoiding unnecessary credit over your needs.

  2. Raise Your Deductibles

    In insurance terms, a deductible is an amount the policyholder pays from their pocket to compensate for the loss before their insurer pays for their claim. So, the higher your deductible amount, the lower your premium is. That is why your insurer recommends keeping your deductible amount high to save on future premium costs. Make sure to pay more from your pocket while raising a claim.

  3. Invest in Home Security

    Your insurer will offer a discount on a premium of at least 5% for installing security devices like high-security locks, smoke detectors or burglar alarms. Even some companies offer to cut your home insurance premium as much as 15 or 20 per cent if you have a high-security sprinkler system or fire and burglar alarm that alerts the police or fire station.

    These systems are costly, and only some qualify for a home insurance premium discount. So, before buying such an expensive system, check your policy requirements and ask your insurer regarding safety systems to save on premiums.

  4. Avoid Raising Small Claims

    The homeowner insurance policy is not a home maintenance policy.The primary objective of a home insurance policy is to cover the unforeseen huge damages. To be safer, homeowners should avoid filing claims for minor repairs over a short period. Many insurers offer discounts on home insurance premiums if you remain claim-free for a few years. You can avoid raising claims by fixing things and paying for minor repairs.

  5. Ask for About Lesser-Known Discounts

    Most insurance companies offer discounts not advertised on TV or the Internet. You cannot save money until you do not know about a particular policy precisely. For instance, some insurers offer discounts to senior citizens or government retired employees, deals on newly bought homes, or discounts on paying premiums via a particular bank. Similarly, many MNCs or corporate firms also offer a discount on group home insurance policies for their employees or workers. Therefore, you should gather complete information about the procedure you seek.

  6. Get Discounts on New House

    Like a motor insurance policy, house insurance premium rates are affected by the age of the house. Insurance companies offer you lower premium rates if the home is new. New places are less likely to have household problems like heating, plumbing, or electrical circuiting. Hence, the premium for a newer place will always be lower than that paid for the antique or older houses.

    People also read Frequently Asked Questions While Raising Home Insurance Claims

  7. Buy Bundle Insurance Policies

    You get a discount on your home insurance premiums if you buy it from the same insurer you purchased other insurance policies from. Buying both policies from the same insurance company will save 5% to 15% on your homeowner's premium. However, check if the combined pricing is lower than buying two separate policies.

  8. Compare & Buy Home Insurance Online

    Home insurance coverage may vary from insurer to insurer. It will turn into a great decision if you compare home insurance online. Check for their websites, customer feedback, reviews, ratings, and coverage for the same policy with different insurers. When you are done with your research, you get a fair idea about the range of coverage under a single policy. Also, you get an idea of how much it will cost you.

    To simplify your task, you can also visit the official website of Policybazaar Insurance Brokers Private Limited. Here, you can compare multiple home insurance plans online and shop around as per requirement.

  9. Look for Private Insurance Companies

    Buying home insurance from a private insurer is much easier, and the standard policy offers more services. So, if you are currently in a government plan, you must also check the services and premium amount of other private plans.

  10. Safe Neighbourhood Means Lower Premium

    For instance, if you buy a house in a relatively safe neighbourhood with a low crime rate, you might have to pay a lesser premium. Also, ask for the names of insurance companies that offer discounted premiums in your neighbourhood. They also know the specific risks in your location. Moreover, if your house is near a fire station or police station, this might lead to offering discounted home insurance premiums.

  11. Insure Your Valuables Sensibly

    Home insurance policies offer you the option of customizing your policy to protect your precious possessions. Insure your valuables sensibly because they will decide the insurance premium amount accordingly.

Summing it up!

Before buying a home insurance policy, you must enquire effectively. Ask your insurance representative if you have any questions about your possessions before purchasing. Also, you must consider the above tips to avail yourself of discounts on your home insurance premium.

Written By: PolicyBazaar - Updated: 17 November 2023
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)
Virendra
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.
Sunil
Bilaspur, July 26, 2022
Premium Calculation
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Bikaner, July 26, 2022
Natural Calamity cover
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Amritsar, July 26, 2022
Enough coverage
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Sahil
Bareilly, July 26, 2022
Nice customer service
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Jitendra
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.
Prashant
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.
Sharad
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.
Ravi
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.
Yashashvi
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.

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