Australia has some of the most livable places to live in the world, albeit with a price. As a homeowner, you need to protect the investment you have made in your home through insurance. However, home insurance these days come at a price due to several reasons. Human error and natural disasters are a constant threat to homes as well as the lives of everyone. Maintaining a healthy sense of security amidst these threats gives rise to the ever-increasing rates of home insurance in the continent. Although it can be a challenge getting an affordable insurance, you can directly influence the price of the coverage by understanding what type of protection you need. Here are some practical tips on how to save money in choosing insurance for your home.
Consider Insurance Cost Before Buying A Home-It is always wise to factor in the insurance cost when planning to get a dwelling. A newer home means newer structures, electrical wiring, heating and air-conditioning systems, and plumbing. This translates to lower premiums compared to older homes. The location of the house can also determine a part of the premium and may even demand for an additional coverage from a certain peril. A house facing the ocean can demand higher premium due to risks of storms and wind. Damages from earthquakes and wind are not normally covered by most companies although there are some states that mandate companies to include them.
Shop Around-This might seem obvious but many people often forget this basic tip. This is the simplest thing you can do that can potentially help you save more. Try to check the websites that offer free home insurance quotes or you can visit a site that hosts a comparison of insurance quotes from today’s leading insurance companies. You can also tap your connections such as friends, relatives, and family members for the best insurance company they may have heard about. Sometimes, it is not also about price alone. You may look around for those companies that offer quality service. You can talk to as many insurance agents as you can to get a feel for the type of service they offer.
Raise Your Deductibles-Lowering premiums can best be attained by raising your deductibles. Typical insurance companies these days start giving out discounts at a $500 deductible. This rate will normally increase as your deductible also rises. Many companies can allow up to $10,000 in total deductibles. However, if your house is on mortgage, you may also want to check first if your mortgage company can provide a large deductible limit. You also have to consider the possibility of paying the stated deductible from your pocket if something happens.
Never Insure Land-Do not include the value of the land when shopping for an insurance. Insurance companies do not insure dirt. Many people will often find to their dismay that their insurance company only gives a fraction of the total cost of their property. This is because home insurance policy typically protects only the house and its attached structures and properties inside it.
Increase Home Security-Many insurance companies would look into the type of security system you have at home without you even knowing it. If you are planning to install a sophisticated alarm or anti-burglar system, you may want to check with your insurance company how much you can get as a discount. This is important since most alarm systems are not cheap but not all of them can qualify for a discount.
Stay With An Insurer-Loyal customers are often rewarded with special considerations and discounts if they will stay for a specific number of years. Some companies even give as high as 10% discount for long-term customers. Pick your choice and stay for good.
Do not make yourself one of those homeowners frantically making a phone call from title or escrow companies requesting for a binder of a home insurance. Home insurance today is not only a practical consideration for homeowners in Australia but a necessity as well. Loss of homes or dwelling damages are not everyday news in Australia but it does not mean you want to lax homeowner duties. Your home should take priority and this can only be done by making sure it is secured.
About the author
The author is an established writer for many years on a wide range of topics in many major article directories. He writes news in Australia from time to time.