How to lower your home insurance costs?
The rise in the Indian real estate segment has allowed many middle class citizens to fulfill their desires of owning a home. With an increase in the number of first time house owners, the home insurance sector has witnessed a positive cycle. While home insurance is an essential part in safeguarding against any untoward incident and emergencies, getting the right protection cover for ones specific needs is essential.
Home insurance covers are broadly classified as building insurance covers and content covers. While building insurance covers provide protection from natural and man-made hazards like fires, earthquakes and other damages, content insurance provides cover to the precious moveable and immovable contents. Insurance experts recommend opting for a long term policy close to 10 years as it saves renewal hassles as well as reduce the overall cost by almost one half.
Let us take a look at the home insurance in totality and ways to reduce home insurance costs.
Try Using the Same Insurance Agency: A large number of general insurance companies that are prevalent in the market today offer home loans along with other loans like automobile loans. Clubbing both your car loan and home loan to one single insurance provider can bring adequate discounts. It is recommended to check out the financial obligations while using separate insurance companies and bargain hard with your single insurance provider for a better deal. The growing competition in the insurance segment has meant a lot of companies are offering good discounts to retain their clients.
Explore Insurances Discounts Options: Most general insurance companies offer good discounts for users who attain their minimum eligibility criteria. It is recommended to check with various insurance agencies about their respective discount offerings before finalizing the insurance service provider. A lot of companies offer discounts for clients who have installed various safety mechanisms in their homes including smoke alarm system, CCTV security screening and intruder alarm systems etc.
Choose Insurance Cover Carefully: Most home insurance companies offer the users to pick and choose their insurance needs. Giving a detailed look to the home insurance policy document is recommended. For those staying in seismic 1 zone areas which have no history or less likelihood of being affected by a serious earthquake, one can opt out for the coverage towards such natural disasters. Depending on your region and coverage needs, picking up insurance covers against what is actually needed may cut costs rather than going in for everything in the policy document.
Improve Your Credit Ratings: Improving one’s overall credit report or CIBIL ratings also goes a long way in ensuring easy availability of home loans and better home insurance prices. Since most banks and financial institutions using the individual’s credit information as a yardstick to allow or decline loans, a better credit rating would reflect is better bargaining value and better priced home loans.
Read more property insurance related articles
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Home Content Insurance in India
