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
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