The approximate cost of buying a home in India is around 40 lakh, which means your home is the biggest investment you’ll likely make in your life.
And if we talk on practical grounds, having home insurance will keep you safeguarded. While the sole purpose of getting home insurance is to protect that investment, doing the same will cost you a fortune. However, if you consider how to save money on home insurance, you can look for numerous ways to cut down the costs.
Whether it is a flat or a villa, there is always some risk involved. Specially, if you are looking forward to buying a Property in Jaipur, it is vital to invest in the home insurance that will cover your life’s most important investment.
In this article, we will know what insurers consider when they quote you a price for offering the insurance on your home.
But before that, we must understand what affects the insurance costs.
Factors affecting Home Insurance Costs
Getting your home insured is simple, but do you know it is not as simple as it sounds. The insurers look at several things before providing you a cover for your home.
Little things like the location of your home, age, roof quality, construction quality, and occupancy affect the insurance cost. The lesser the quality of your home, the greater will be the insurance cost and vice versa.
Apart from the factors including house, there are several other factors apart from your home. For instance, exposure to road risks, proximity to the fire departments, occupancy of the home, and your credit score.
You can even get the right quote for your home insurance with the bank bazaar’s quote checker here.
Now that you are aware of the factors that affect home insurance cost look at how you can save money for apartment insurance.
No matter how costly, paying for homeowners, insurance is money well spent — your rate goes down compared to what it will cost to replace your interiors after any unfortunate incident. Here several different tips you can use to have budget-friendly home insurance,
While analyzing your home’s insurance value, the insurers look at all the threats your house is prone to. Such as fire, burglary, the ceiling falls, etc. Thus, to make it look safer, you should include some low cost ideas that will make your house loo threat-proof.
You can get cheaper insurance rates by updating security systems and electrical. You can also make your house look tougher by installing iron shutters, impact-resistant roofing, and stronger door and window locks.
Moreover, you also give your insurer fewer chances to increase your rates around the renewal time by avoiding incidental claims.
Having a good credit score is one of the most crucial steps of saving money on your home insurance. Many of the companies use a credit-based insurance score to evaluate the cost of your home insurance. FICO is one universal scale that defines one’s value when it comes to loans or insurance. If your score is less than 630, you can shoot up your score by paying your bills on time, paying card balances before the limit, or just by reading the credit report to fix any errors.
Rather than getting insurance from a single company, it is best to look for all other companies that offer home insurance. It’s better to compare rates before finalizing the insurer. Some companies also give loyalty discounts to previous customers and also provide referral benefits to customers.
You can even ask your friends and family for some more options.
Increasing your deductible will mean that you will have to give a claim settlement for property damage. In simple words, it is the money you pay from your pocket when you file a claim with the insurer. You can save money on your apartment insurance by paying a higher deductible, which will reduce the rate of home insurance.
However, higher deductibles can put you in a sticky situation, so make sure that you take that risk only when you have ample funds.
Good things come in pairs! One of the effective ways to save on home insurance is to combine your coverage. Try to pair it up with car insurance or any other insurance from the same company that also offers home insurance. Moreover, many of the companies provide a combo when you opt for more than one policy. This simple step can typically save you up to 10% to 20% on your homeowner’s rate.
After going through all the points as mentioned above, it is clear that the goal is to save money on home insurance. Hence, you must always look for a better option to get your insurance from and compare the rates before finalizing any option to save big on home insurance.
After all, it’s all about saving!