Your home is your most important asset. It provides shelter for you and your family. It is filled with memories and objects that you have gathered over the years. That’s why it is important to make sure your home is properly insured. You want to protect your most important asset in case of fire, accidents, storms, theft or property damage. A good insurance policy will provide this protection.
Many families are cutting corners today in this tight economic climate by reducing or completely eliminating home insurance. This is a very bad and irrational decision on the homeowner’s part.
Instead, focus on ways you can save on your home insurance. A lot of home owners are saving on their premium by raising their deductible. Raising the deductible one level can save a family hundreds of dollars every year on home insurance.
Second, make sure your home is equipped with protective devices, such as smoke alarms, fire extinguishers, fire alarms, burglar alarms or sprinklers. Not only will these devices protect you and your family, they will also get you a discount on your home insurance premiums.
Third, purchase more than one insurance policy from the same provider. You can buy auto, home and life insurance from one provider, allowing that provider to “bundle” the policies and give you a hefty discount on all insurance policies. This is a great way to save money on a much needed product.
Always insure your home for 100% of the cost to replace the home after a loss. The above scenario is labeled as “insured to value,” and it’s yet another way to save big.
Strong credit scores really go a long way in influencing insurance provider’s decision to grant a high or low rate. A lot of folks do not realize this, but maintaining a strong credit score is highly important especially in the insurance world. Insurance companies view a good credit score as a direct indicator of the responsibility of the individual.
As you can see, there are numerous ways to save or reduce your home insurance premium. Simply cutting back costs or eliminating the policy altogether is not very responsible. Protect your best asset.
Tom Martens is the syndication coordinator Insurance-south-africa.co.za. South Arica’s leading Insurance information portal.
