When you buy home insurance, you’re playing safe than sorry. Because home insurance offers comprehensive coverage to your home and belongings and indemnifies you against any loss or damage arising due to natural and manmade calamities. As a homeowner or tenant, your objective is to zero in on the best home insurance in India that covers your prized possessions to the maximum extent at affordable premiums.
Well, the best and the most comprehensive come at a price and you can easily determine the premium due by taking help of an online home insurance premium calculator. Choice of policy should not be solely guided by pricing factor alone. That is, when you compare home insurance plans offered by the various home insurers, not only on the premium scale but mainly on the extent of coverage, the specific inclusions and exclusions and their settlement ratio.
Home insurance is vital, as important as life insurance. If you’re bothered about the high premiums, here are ways by which you can lower the premium when you buy a home insurance policy.
If the sum assured is high, there will be a corresponding increase in premium. As you all are well aware, insurance companies make money through your premiums. So, it is very natural for the insurers to entice you to opt for over-insurance.
● In the first place, over-insurance result in higher premium payout.
● Additionally, don’t be under the assumption that if your property is over-insured, you will get a higher proportion of claim.
● Insurance companies reimburse only to the extent of actual loss. So, you will only end up paying higher premiums without any added benefit.
● Get the right valuation, take adequate cover and pay reasonable premium.
Raise the deductibles
In insurance policy parlance, deductibles is the amount of loss that the insured agrees to take upon himself. When you make a claim, the insurer takes up the amount that is in excess of the deductible limit.
Higher the amount of deductible, lower would be the insurer’s liability, which will have the effect of lowering your home insurance premium. You can reduce your premium by as much as 20%, which can amount to significant savings.
However, in a bid to lower the premium costs, do not raise your deductible to a high. The right balance will ensure that save on the cost while enjoying adequate home insurance cover.
Install safety devices
Insurers can lower the premium is they’re satisfied that you, as the homeowner has installed security devices like CCTV cameras, burglar alarms, fire sensors, deadlock bolts and safe deposit cases.
●Insurers place you in the low risk category and will be willing to offer you a home insurance policy at a lower premium.
●In fact, installing these security features acts as a deterrent to thieves and you will benefit from not making any claims, entitling you to no-claim bonus.
No claim bonus
In case you don’t make any claims and are regular in your premium payments, the insurer rewards you with a no-claim bonus. This has the net effect of lowering your premiums.
Insurers offer corporate discounts as well as to professionals like doctors, chartered accountants and company secretaries. You can utilise your professional qualification and your corporate standing to avail more discounts from the insurer.
Compare insurers and their plans
Insurance is a competitive market. With a plethora of players offering home insurance, make a smart move by comparing insurers and their various plans. This can be easily done online. Plus there are a good number of online portals that give you great offers. Avail the best deal after a through comparison. Shopping for home insurance online definitely gets you a good deal as the middlemen (insurance agents) are kept away.
The other way that you can lower your insurance premiums be it life, home or automobile is by choosing a single insurer. Multiple policies with the same insurer guarantees discounts. Plus being associated with them in the long run earns you good rewards like loyalty bonus.
Major players like HDFC and Bajaj Allianz offer a basket of insurance products. So, you can shop under one roof and gain rewards, in the form of lower premiums. To know more about home insurance policies, visit the Bajaj Finserv website.