6 Tips to Control Rising Premium on Your Home and Contents Insurance

Many of us dream of a home that makes us feel comfortable, cosy and most importantly, safe. It is hard to imagine someone who does not share these values. Who would not want to take care of something of immense value?

One way to protect our dearest belongings is through home and contents insurance. But what can we do when premiums keep rising? And why do they become so expensive in the first place? Distinct factors can impact insurance premiums for varied reasons. For instance, natural phenomena such as climate change or the Covid-19 pandemic can interfere. But other factors like the price of materials can also affect these costs.

However, there are some ways through which you can conciliate a good insurance plan which fits your budget. After all, when it comes to your home, the place where you wish most to feel safe, you should have the right to afford to protect it.

A 6-step plan to control rising premiums

Home and Contents Insurance is the best way to protect and care for your safe space, as well as what is in it. Sometimes though, it can be challenging to find premiums that both are affordable and meet your needs.
It is true that we cannot anticipate the unexpected. But even though some economic aspects run out of our control, the best way to intelligently and responsibly manage and control the prices of home and contents insurance is to understand and follow the steps listed below:

1. Care for your property

There are a variety of ways to protect your house and prevent an invasion, a fire, or any other accident from happening. Resources like alarms, security systems, cameras, outdoor lighting, well-trimmed yards (that leave no hiding spots) or even something as simple as talking to your neighbours frequently, could not only create a safer environment to live in but also lower your insurance premium.

2. Avoid a claim history

Directly connected to the first tip, having a low or no claiming history helps to tremendously lower your insurance premium. Having protection (as mentioned above) avoids claiming a minor incident that could be handled by a security system or a conversation with the neighbours instead.
The insurance provider could see it as a risk to lower the insurance plan of a client who has a high claim history. In other words, those with a low claim history are most likely to be able to choose from much lower premium options.

3. Pick the right area to live in and know it well

Is this a safe neighbourhood? Is this house at risk of a flood? Are there any risks of a fire? Those questions could be used to calculate how much your premium will cost. Moreover, in addition to asking yourself such questions, try to understand what the needs of your current home are.

Floods are usually an expensive asset on a home, building and contents insurance plan, but if it is a dry city, it is less likely to happen. So, it is good to know your necessities and which covers are worth compromising on. You do not have to pay for risks you are not taking. However, you should definitely invest in protecting your home and your contents from more probable risks you may face.

4. Higher excess equals lower premiums

It may seem risky to raise your excesses but if you follow the above tips, you will feel more confident making a bigger contribution in case of a claim. This will significantly lower your premiums and it could mean a better insurance plan too.

5. Content value

When claiming the value and price of your contents, be honest and reasonable when disclosing the estimated value of each item. Over-estimating the price of an item could mean that, when such an item is claimed, the premium will be higher than expected.
On the other hand, under-estimating the price of an item would mean the opposite. In the event of the item being claimed, when it is time to receive its estimated amount, you would not receive what the item is actually worth.

6. Plan an annual payment

Last but not least, this tip is quite simple yet extremely effective. It takes planning, but it (literally) pays off. Paying for an entire year of an insurance plan upfront can feel like you’re spending more. However, it does not hurt to compare both options and find out how much you would actually spend paying monthly versus annually. If you put it on paper, it might be considerably less money.

At the end of the day, all we want is to enjoy our achievements and our family without having to worry about something happening to the ones we love or to the home we care for. This is why Steadfast Eastern Insurance exists, to care for you so you can be busy enjoying the things and people you love. Enjoy the present moment and the comfort of home and leave the rest to us.