11 Ways to Save Money on Your Home Insurance Premium

Buying a house is one of the biggest 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 know several ways to save money while buying home insurance.

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Need of Home Insurance 

A comprehensive home insurance policy covers the loss as specified in the insurance policy that includes theft as well as burglary. As Indian households keep several valuables in their house, it makes more practical sense to invest in a home insurance policy.

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. 

11 Ways to Lower Your Home Insurance Premium 

While insurance rates might fluctuate with time, there are several ways for you as a customer to reduce the home insurance premium amount. You can tailor your policy by taking proactive measures to reduce the amount and the risk. To get you started, here are 11 simple ways to save money on your home insurance premium- 

1. Maintain Good Credit Score 

In India, many insurance companies consider an applicant’s credit history for deciding the home insurance premium. They use a credit score for determining your premium rates. Therefore, a healthy credit score will reduce your insurance premium costs.

Whereas 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 bill  timely and avoiding unnecessary credit over your needs.

2. Raise Your Deductibles

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

3. Ask for More Discounts

Most insurance companies offer those discounts that are not advertised on TV or the internet. Until you do not know about a particular policy precisely, you cannot save money.

For instance, some insurers offer discounts to senior citizens or government retired employees, discounts on newly bought homes, or discounts on paying premiums via a particular bank. Similarly, many MNC or corporate firms also offer a discount on group home insurance policies for their employees or workers. So, make sure to gather complete information about the policy you looking for.

4. Get Discounts on New House

Like a motor insurance policy, a house insurance premium rates are affected by the age of the house. Insurance companies offer you lower premium rates if the house is new. As new houses are less likely to have household problems like heating, plumbing, or electrical circuiting.

5. Tighten Your Home Security

Your insurer will offer a discount on a premium of at least 5% for installing security devices like high-security lock, smoke detectors, or burglar alarms. Even some companies offer to cut your home insurance premium as much as 15 or 20 percent 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 not every system qualifies for a home insurance premium discount. So, before buying such a costly system, check your policy requirements and ask your insurer regarding safety systems to save on premiums. 

6. Buy Bundle Insurance Policies 

You get a discount on your home insurance premiums if you buy it from the same insurer you bought your vehicle insurance from. It is always a smart move to buy both the policies from the same insurance company as you are likely to save 5% to 15% on your homeowner’s premium. However, we recommend you check if the combined pricing is lower than the price of buying two separate policies. 

7. Avoid Raising Small Claims 

The homeowner's insurance policy is not a home maintenance policy. The home insurance policy cover assists at unwanted and unexpected huge damages. In the current scenario, homeowners should avoid filing a small claim 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 up the things yourself and paying for small repairs from your pocket. 

8. Research Well Before Purchasing

Buying a home insurance policy is itself a time-taking task. We recommend you to take time and research well online. Check for their websites, customer feedback, reviews, rating, 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 about how much it will cost you. 

9. Choose A Private Insurer Over the Government Insurance Plan

You might find that buying home insurance from a private insurer is much easier and more services are offered in the standard policy. So, if you are currently in a government plan, you must check the services and premium amount of other private plans too.

10. Safe Neighbourhood Means Lower Premium

For instance, if are buying a house in a relatively safe neighborhood with a low crime rate, you might have to pay a lesser premium. Also, you can ask for the names of the best home insurance companies that might offer discounted premiums in your neighborhood.

They also know the specific risks in your location. Moreover, if your house is located 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 personal 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. If you have any doubts or questions about any of your possessions, you should ask your insurance representative before buying. Also, you must consider the above tips to avail discounts on your home insurance premium.

Written By: PolicyBazaar - Updated: 10 February 2022
Disclaimer: Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by an insurer.
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