Home building insurance is an essential part of homeownership yet the most overlooked. Without insurance, it is likely that you will not afford to repair any damage that should occur in case an accident occurs. Insurance rates vary with different insurance providers.
Below are five tips for finding affordable home building insurance that should help you make an informed decision.
1. Shop Around
Like any other item or service out there, it is not advisable to settle for the home building insurance that you come across first. Shop around to see what other companies are offering. It might be time-consuming but can save you a lot of money. Ask your family and friends or check online quote services and consumer guides. It will give you a clear idea of price ranges. However, do not put price alone into consideration. Instead, pick a company that offers quality services at a reasonable cost.
2. Bundle All Your Policies
Your insurance provider would love to insure all your assets. It is, therefore, worth checking if you will get a discount for covering your life, home, business, and vehicle with one company. Make sure the total cost is lower than purchasing different policies from different insurance companies.
3. Raise your Deductibles
Deductibles can be defined as the money you pay towards a loss before the insurer starts paying the claim. The higher your deductibles are, the more amount of money you save on premiums.
4. Improve Your Home’s Security
You cannot move your property out of a high-risk area but can rethink things that can earn you some discount. These things include installing standard safety features like burglar alarms, smoke detector, deadbolts, fire extinguishers, and carbon-monoxide detectors. Some companies can offer to reduce the premium up to 20%.
Safety systems are costly and not all systems qualify for discounts. Therefore, find out what your insurance provider recommends, the cost of the system, and how much discount you will get before installing any system.
5. Maintain a Good Credit Record
Most insurance companies will take your credit record when determining your premium into account. It is assumed that if your credit score is good, your chances to file a claim are few hence you are rewarded with low premium.
To protect your credit records, pay your bills on time and keep your credit balance low. Additionally, regularly check your record and have all errors corrected promptly.
Final Thoughts
The above tips are key requisite for finding pocket-friendly home building insurance. They make the difference between your ability to rebuild your property in an event the unthinkable happens and facing financial challenges.
