Budget Home Insurance

By: EconomyWatch   Date: 5 September 2009

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EconomyWatch

The core Content Team our economy, industry, investing and personal finance reference articles.

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Budget home insurance is usually a very basic cover that offers policyholders financial protection against damages to their home. This policy is devoid of all add-ons to the cover, such as accidental damage cover and replacement door locks in the event of lost keys. Instead, it might provide a specific cover for your:

  • Contents

  • Building (if you are the homeowner)

 

The problem with opting for budget home insurance is that certain critical additional covers, such as accidental cover and personal cover for possessions, are not included in the policy. Thus, you need to check whether an insurance policy provides you optimal financial security within your budget.

 

Tips for Getting Budget Home Insurance 

Some of the things to consider and tips to remember while buying a budget home insurance policy are:

  • Install security devices, such as smoke alarms, fire extinguishers and deadbolts. This can save you up to 15% in terms of the premium.

  • Consider using fire resistant material while constructing your home. This might make you eligible for up to a 15% discount, depending on the material used.

  • Consider getting the insurance when your house is less than 10 years old.

  • While buying home insurance, do not consider the value of the land.

  • Increase your voluntary excess to lower your premium.

  • Senior citizens are eligible for as much as a 10% discount.

  • Document the inventory in your home. This will help you in the claiming process.

  • Adjust the coverage amount in accordance with the inflation when you renew your policy.

  • Choose an insurance company that also offers auto or health insurance while buying budget home insurance. Taking multiple policies from one provider will help bring down the premium.

  • Modernize your heating, plumbing and electrical systems to get a discount on the premium.

  • Some insurers offer discounts on the premium if you and your family are non smokers.

  • If you have a no claims history, you could be eligible for a discount.

  • Joining the local neighborhood watch scheme may make you eligible for savings on the insurance cost.

  • Install quality locks to qualify for discounts.

  • Some insurers give cashbacks if you buy a policy from them via the specialist cashback shopping sites.

  • The fewer the claims you have made, the higher will be your no claims discount.

 

Following these simple strategies can make a huge difference to the quotes you receive from insurance companies and ensure that you get the best deal on your budget home insurance.

 


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