3 ways to control rising premium for home insurance

by Rizwan Khan Professional Interior Designer

Buying a home insurance policy is a great benefit, considering the risks that threaten your property. However, you may find it difficult to control the costs, with the rates of premiums rising over the years. Various economic factors and other issues have led to increment in the premiums of home insurances. As a homeowner, you might be struggling to cut these expenses. When you choose a home insurance policy from the several schemes developed by the reputed companies, you need to have a look at the features and check out whether you actually need them. Here are three ways you can control the rising costs of the premium for your home insurance.

Increasing the deductible of insurance

The deductible refers to the extent of risk a person accepts and agrees to go ahead with. You need to decide this amount before the insurer starts making payments on a claim. As the cost of home insurance is rising, it makes no sense in allowing the insuring company to assume the full risk. In case you have a low deductible, you may raise it, or possibly double it up so that you can make substantial savings on the premiums. Carefully dealing with the deductibles can help you to make a saving of around 25% on the premiums that you are paying for your home insurance. Certain insurance companies offer deductibles equivalent to one percent of the total insured value that your home enjoys. This may appear as a huge sum of money to pay while making the claim. However, you should consider the situation, where insurance companies impose penalties on customers who file one claim, or multiple small claims. The policy may be canceled and the premiums may rise in these cases. Therefore, by increasing the deductible of your house insurance, you can reduce the premiums that you are paying.

Clubbing your home and auto insurance schemes

One of the best ways to make a saving on the premiums you are paying for your home insurance is to merge the policies of your home and auto insurances. Besides, certain insurance companies offer these deals at a discounted price to the policyholders. However, you need to ensure that the deal comes at a price lesser than what you need to pay after summing up the individual costs of the two policies. You need to carry out certain research before deciding on the policy you are buying, as the reputed companies have come up with several comprehensive packages, that may benefit you rather than purchasing the insurance policies individually.

Do not get coverage for risks that do not look threatening your property

Well, many policyholders actually fail to assess the risks that their property is facing, before purchasing the insurance schemes. For instance, if you are residing in an area that faces no threat of floods, you can simply opt for a package that does not cover the threat. This will help you to reduce the premiums to a considerable extent. Instead, make sure that the policy covers all the threats that may affect your property.

Before buying a property insurance online, you should compare the schemes that the reputed companies have designed. Get it customized for yourself to make great savings while keeping your house insured.