How To Get Maximum Home Insurance Cover For A Low Premium?

Home insurance is the second foundation of your home, as it secures your home and the belongings inside. The trend of home insurance or home owner's insurance is fast catching up, and today an increasing number of homes are insured against disaster, accidents, fire and other disasters.

Even though it's a necessity today to get home insurance covers, such policies have also become expensive as the premiums are adding to the home loan EMIs. Though it'a not advisable to avoid buying home insurance, there are ways to cut down on the expensive premiums. It is important to know what home insurance covers too.

First, one should go discount shopping with all the necessary details before immediately rushing into buying a policy. Watch out for various types of home insurance, visit a minimum of two to three insurance companies and check out their offers, and if possible, go back and bargain for a good price.

Here are a few things to keep in mind before you buy a home insurance cover:

1. Club home loan and insurance: A number of banks have tie-ups with insurance companies these days. Quite a few of them advertise and market these services. In addition, many banks have their own life and general insurance businesses. There is always the possibility of getting a good deal out of home and life insurance covers, if bought together. In addition to good offers that a bank might extend, there is always the advantage of reduced paperwork.

2. Club auto insurance with home: Insurers tend to extend discounts to their old and loyal customers. If you already have auto insurance with a reputed general insurance company, make sure that you buy your home insurance cover as well from the same company, provided they are in the business. They also have your safety records if you have been with them for a long time, so you can always claim extra discount.

3. Increase your deductible: A deductible is the amount of money that you will have to shell out before insurance pays the rest of your claim. The higher the deductible, the higher is the assurance for an insurance company. In some cases, the premiums can be cut by at least 15-20 per cent if the deductible is high enough. Get all these details before zeroing in on an insurance policy.

4. Secure your home: Nothing assures an insurer more than an owner who is just as safety conscious as they are. Secure your home with branded locks, burglar alarms and also go for reputed builders who offer very good security services. Go for a building that boasts of good construction quality, is adequately fireproof and quake-resistant. That might reduce the risks that your home is prone to and will reflect on your premiums generously. If need be, retro fit your home to make it more resistant to damage and disaster. The payoffs for such spending will be in terms of assured safety for your home, as well as financial ease due to low premiums.

5. Seek special discounts: Do you have a retired parent who stays at home? Include that in your policy. A number of insurance companies believe that homes that have people staying in will ensure that it stays safer. Make sure you mention all these points that will get you a more economical deal with an insurance company.

(The writer has been working as a business journalist for the last nine years, and has covered beats across banking, pharma, healthcare, telecom, technology, power, infrastructure, shipping and commodities)