How to Get the Best Deal on your Home Insurance

by Lewis Humphries on Monday 7 October 2013, 8:40 PM | Category: Personal Finance| View: 1305 views

Unless you are well versed in the complex arts of finance and insurance, there is likely to be one question on your lips as we enter the final financial quarter of 2013: -

Are we in a recession or not?

While the technical answer is no, there is undoubtedly plenty to concern the average U.S. citizen in the current economy. To begin with, the so-called housing boom is heading towards a shuddering halt, with the latest data from the U.S. Census Bureau suggesting that the rate of growth in property value has been decelerating steadily since May. In addition to this, the shutdown of the Federal government has created further unrest, as warring political factions struggle to decide on a viable economic course.

The Perils of Financial Uncertainty

This rising level of uncertainty can have a significant impact on the way in which consumers execute personal finance decisions. For home-owners who are looking to buy or renew an existing home insurance policy, for example, economic unrest may encourage them to select a low cost deal rather than prioritising the value that they are likely to receive for their investment. This will only hinder them going forward, as a comprehensive home insurance policy has the potential to save you considerable sums of money over time.

With this in mind, what practical steps can you take to obtain the most effective and affordable home insurance coverage available? Consider the following: -

Understand the Basics of Home Insurance

On a fundamental level, it is crucial that you identify the two key types of home insurance: buildings and contents. As these are both separate entities, you will need to consider both in relation to the type of real estate investment that you have made. If you have recently purchased a home from a reputable broker such as Avenue Realty - Real Estate, for example, you are responsible for both the structural and internal components of the property and should look to purchase a single policy that safeguards both. Renters should only look to invest in a policy that protects their contents, however, as it is the landlord's responsibility to attend to structural issues and associated costs.

Identify Ways of Reducing Premiums

Regardless of the type of insurance that you are seeking, there are practical steps that you can take to reduce the cost of your premiums. These can be performed without compromising the value or scope of the coverage, and include the following options: -

  1. Fit a fully functional burglar alarm
  2. Install time-sensitive switch lights
  3. Invest in outdoor security lighting
  4. Plant prickly hedges if your live in first floor accommodation
  5. Ensure that your property is equipped with compliant and cutting edge fire and smoke alarm systems

 Compare the Market with Patience and Diligence

Comparing the online market is crucial if you are to find the best home insurance available, but this requires patience, diligence and attention to detail. The first thing to bear in mind is that premiums vary according to alternative items of underwriting criteria, and you must understand these differences if you are to determine true value. Another point to note is that not all reputable insurance firms advertise themselves through comparison websites, as they instead choose to distinguish themselves from their competition by encouraging consumers to visit an independent website. So be prepared to spend a great deal of time online, while also using web browser extensions to identify real time promotions and savings.

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