How to Get the Most Out of Your Home Insurance

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Our home is often the single most expensive asset we’ll ever have in our lifetime, so it makes sense to protect it with home insurance. However, it’s all too common for homeowners to buy lending products that they won’t ever need or won’t use for an extended period of time. 

Unfortunately, it’s often the case that homeowners don’t purchase enough comprehensive insurance that covers their needs, causing financial hardship. To ensure your insurance works with you, rather than against you, consider the following tips to lower your premiums.

How to Reduce Your Home Insurance Premiums

While you’re shopping for the best-value home insurance (in Australia) for your needs, be sure to ask the insurer how to apply the following:

Total Asset Value In and Around the Home

It can be difficult for the average homeowner to determine what each item in your home is worth, and that’s because our minds don’t work that way. Once something in your home is bought, even known assets like jewelry or art, its true value is quickly forgotten about. However, to take advantage of your home and contents insurance, you need to do some research.

Although it’s tempting to apply an estimate to your insurance, over or undervaluing your assets can be a huge mistake. When done incorrectly, you may not be reimbursed what you expect or lose out on the item’s actual value. On top of that, you may even spend more on your insurance premiums. To jot down an asset’s value, calculate what it was worth at purchase date against depreciation.

Keep Your Own House Safe

Wherever possible, try to avoid making a metaphorical “Steal Here” sign across your property to avoid having to replace your assets in the first place. Apply common sense when you’re protecting your property, but don’t forget to think like a criminal. If something looks too easy to steal, it probably is, and you should put some form of security in place for said items. 

For example, don’t leave your ladder or tools outside even if you’re quickly running into the house. You could get caught up on something or be prevented from moving your possessions indoors. Burglars can use your ladder to climb up to the second story and your tools to crack windows. Be sure to always lock your door and windows, install landscape lighting and a reliable alarm system.

Increase Payment on Your Excess

Australian loan and insurance companies often expect you to pay an excess towards the principal to ensure your lending products receive lower premiums. While it isn’t required, it’s a good idea to take advantage of this option because you may not have the opportunity to pay an excess in the future. Most insurers will charge you the full premiums rate after sign-up.

Whereas a private health insurance excess amount is what you agree to contribute to the upfront cost of accommodations at the hospital, a home insurance excess covers the upfront cost of a claim. You can decide whether you prefer to pay for lower premiums and a higher excess when a claim is made or consistency in a lower excess and higher premium policy.

Combine Your Policies For More Rebates

Many insurance companies will offer more than just one insurance type. This is done to entice people who want to apply for multiple insurance products or for homeowners who wish to bundle their utilities. Bundles help keep costs down, which give you more access to other types of products you might not be able to afford if you went through more than one insurance company.

If you’re planning to build a home, you can get home builders with a comprehensive home insurance policy. Or, you can bundle multiple lending products like home, contents, landlord, motorcycle, car, building, caravan, boat, and much more. Try to negotiate for a better deal, because a few dollars saved every month add up!

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