Saving money is becoming more important as the cost of living increases, along with the interest rate. Home insurance is one large expense that can be cut down.
Who would’ve thought that home insurance could be a useful way to cut costs, but as it turns out, this is one way that homeowners can save a lot on their monthly expenses.
Adrian Goslett, Regional Director and CEO of RE/MAX Southern Africa, says that “One of the ways in which homeowners can save money is by taking a look at their current home insurance policies and possibly changing their cover. While insurance is a necessity for homeowners, this does not mean that it has to be a financially draining burden. Homeowners should shop around and see what options are available to them from various insurance providers.”
Some tips on how to save on your home insurance:
- Shop around: Compare quotes from various insurance companies to find the most competitive policy that suits your needs. This can either be done over the phone or through an insurance broker who could make this process easier.
- Annual increases: Most consumers will simply accept an increase on their insurance policies every year, however it’s worth investigating this increase further. Contact your insurance company and make sure that your current policy is still the best option, otherwise you could find a better deal from a competitor.
- Search the web: Look on the internet for insurance quotes from different companies, it’s the easiest way of getting this valuable information without having to leave your seat. You’ll be required to load your details and insurance criteria onto the website, after which you will receive a list of insurance companies and premiums that match your requirements.
- Upgrade your security: Any upgrades to your home’s security can reduce your monthly premium by as much as 5%, so it’s a good idea to make these improvements to your home sooner rather than later.
- Contingency fund: Premium rates are given to homeowners with little or no claim history. So another option is to pay for small incidents from a contingency fund and leave your insurance policy for when it’s really needed.
- Higher excess: You can opt for a higher excess and pay lower monthly premiums, but this option needs to be carefully weighed up as it would require a large amount in your savings.
Adrian Goslett has these suggestions for homeowners when comparing insurance policies:
Check whether you can get liability cover, so that you are covered for accidental injuries or damage done to other people or their property.
Look at the cover for household contents and personal property, so that any household item which isn’t part of the structure will be covered. Make a list of what exactly you need covered.
Check whether there are items that need to be specified separately.
“A home insurance policy is a vital aspect of homeownership - paying exorbitant premiums is not. Using these tips and reducing insurance premiums will ensure that homeowners can reduce their costs, while still having their property adequately covered for unexpected incidents,” Goslett concludes.