Your home is definitely your place of pride and joy. You work hard to one day purchase that dream home that you want to grow in and maybe even raise a family in. Taking good care of assets such as a home becomes of prime importance and home owner’s insurance is a key part of that process. When looking for home insurance and insurance rates in Dubai, many people think of it as unwanted expense or one that is too high to justify the price; but it is a must to make sure your home and capital is protected in case of unforeseen disaster or incident.
If you are looking to cut costs on home insurance or are looking to purchase an insurance policy, the following tips may be useful for you in helping you save some cash -
- Increase your deductible – The deductible is the amount a home owner will have to pay out of his or her own pocket in case of damage to the home. Many a home owner opts for a lower deductible thinking it will save them money. However, the lower the deductible amount you agree to pay on your policy, higher the premium payments will likely be. In most cases insurance companies offset the risk by charging a higher monthly premium insurance policy payment. Opt for a higher deductible amount than you are currently paying and you will be able to lower your premium payments by a considerable amount. Having money saved and set aside in an emergency fund is the best way to ensure that you have enough to pay your deductible in an event that the need should arise.
- Ensure your home is safe – Much like auto insurance rates in Dubai and elsewhere, where in the safety features of your vehicle is a factor in determining your insurance payments, the security of your home too plays a part. A safer home with features like proper security systems, efficient locking systems, weather resistant features, disaster proofing and more will obviously be less of a risk for an insurance provider to cover and in turn help you get a better rate. Make sure your home is up to date with its safety features and talk to insurance providers about what changes and improvements they approve off in order for you to avail of a lower premium.
- Bundle with other policies – Bundling insurance policies is one of the simplest and smartest ways of getting a decent discount on your home owner’s insurance. Many insurance providers offer great bundles at lower rates if you opt for different kinds of policies like home and car insurance from them. Buying two or more policies from the same company can often lead to great savings. However, before you commit to a plan make sure you shop around and check if you would get a less expensive deal if you were to purchase them separately from different insurance companies. Talk to your current provider to see what they can do for you.
- Don’t keeping changing your provider – Jumping around from one insurance company to the next rarely works out well. Most insurance companies reward their loyal and long time customers with favourable discounts and drops in premium payments, more so if you have always been regular with your payments. Ask your provider for such discounts and if you have found a similar policy for less with another insurer, check to see what your current company can do for you.
Be wise when it comes to saving money on your home insurance. Don’t opt for policies or plans simply because they may be cheaper. Make sure you are getting exactly the kind of coverage you need from an insurance provider who is reputable. Always read the fine print.
Mark Shepherd is a personal finance consultant. He works with clients advising them on various aspects of personal finance like insurance rates in Dubai to how to get financing for their business. He has his own blog and writes for various publications as well.