If you are considering buying insurance for your home or applying for a mortgage loan, keep in mind that those two are alike. The premium you pay for your policy will depend on the characteristics of your home and the coverages that you contract. Our first advice is to consult all the offers you can get to save up. To find out more about finance tools, visit financespaces.com
When buying insurance you can choose from several channels: the website of the insurer, the phone, an insurance broker, an agent … Perhaps agents and brokers will submit an economic offer, as their administration costs are lower than the rest. Another option that let you know the best market rates at the time without having to wait for an agent to call is to use tools such as comparators products which introduce a series of data that will show the options that best match your search. Insurance companies also offer you their own tools so that you can compare different products together.
Here are other tips to save up on your home insurance:
- Upgrade your policy: If you already have home insurance, make sure that it is updated. In recent years, prices and added coverage have dropped considerably, so maybe you’re overpaying.
- Buy insurance online: The insurer Direct Line, for example, shows that a customer can save up to 50% on home insurance if you buy online. Typically, however, it is reduced by 20%. Find and compare to find the best prices.
- Do the math: If you are applying for a mortgage, the lender will require a home insurance. You have the right to choose an insurance company, although the bank will ask you to hire the policy with it. If you do not terminate your loan, you will lower the interest rate on the mortgage. Do the math to see what would be better. Do you already have insurance with the bank? Remember that you can change it anytime, as long as you notify two months before its expiration.
- Pay annual fees: If you pay at once at maturity, instead of every month, you will prevent the additional shipping and management cost, which moves to the premium. Some companies offer the possibility of financing it, which implies a cost. However, home insurance does not cost as much as the car insurance.
If you own an apartment
Check the actual value of construction: In the policy, the value of the insurance must be set to the actual value of construction, not the current price of housing on the market. If there is an accident, the insurance will only pay the cost of reconstruction, which is much less than the purchase.
Risk insurance: In this mode, the insurers will pay the amount you have secured regardless of the value of insured property. For example, you have a contract worths € 6,000 meanwhile the damage worths 15,000 €. If it is sufficient, we can take out insurance on total assets, since the difference could be covered by insurance community. Find out about the conditions and assesses of this option.
Go into details: Be very accurate when determining whether the house is in unpopulated or uninhabited any time of year. Also, calculate how many kilometers from the house to the town center. The influence of these details in the price of insurance is very huge.
The limit: Pay attention to the limit on maximum, minimum or franchises coverage, and especially the limits on the compensation of the additional risks (eg caused by atmospheric agents such as rain, wind, hail or snow, smoke, or those derived from acts of vandalism or riots) and the percentages that apply in each case.
Save, but not too much: The law requires insurers must respond,\ if their clients suffer from a loss, so they can not risk their solvency with customers. No haggle. If you have an accident and have neglected, the necessary coverage can end up being lost.
Make reforms: Check if there have been recent works in the building to improve water pipe or electrical systems, for example. You also will pay less for that.
Insurance for the land only: If only you secure the land, the available security measures such as window guards or burglar alarm will not affect the price too.
Insurance for the house only: If you do not include the ground in insurance, the insurance will be cheaper and also the inclusion of land just bring you anything. In the case of fire, the house will burn, but the ground will be there.
Avoid underinsurance: If you claim less than the actual underinsurance may occur, the insurer will not pay the entire amount you need. So do not cut capital and do not think that they are going to steal everything.
If you rent a house
The insurance covers all goods: Make sure the insurance includes all goods that are in the house, even though some are more exposed than others to suffer a setback from which you can cover with the policy. For example, a computer is more likely to disappear in a robbery than a bed. Hence insurers value assets and take their rates into the real possibilities of damage in each case.
Avoid double insurance: Maybe your landowner already has insurance covering the house (pipes, walls, common areas …) in case of fire, explosion, flood, smoke, glass breakage and theft, among others. If this is already enough, do not buy another for your individual insurance coverage.
If your house has security elements (armored access door, burglar alarm, gates, bulletproof glass, safe, surveillance, security cameras …), home insurance will be cheaper.
Do not hire unnecessary coverages: Are you sure you need technical support or coverage for earthquakes? Insurers provide endless lists of hedges that do not give details or specify the maximum capital indemnified in case of the accident. Look at what your policy covers specific claims and remove what does not interest you.
Note the attendance: It is vital to know how fast your insurer will respond in case of disaster. If your home suffers a mishap, do your best to minimize the consequences: call the fire department, do not leave the house open unprotected from theft …).