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Here’s how you can lower premium on property insurance

August 17, 2017

Here’s how you can lower premium on property insurance

Buying a property of one’s own may be possible only after the culmination of years of saving money. However, merely owning a house is not adequate as it is essential to protect your property against any potential loss or damage in the unlikely event of a break in, accident, fire or any other natural disasters.

Typically the property insurance premium may be calculated by diving the net value of your property by 1000 and multiplying the result by 3.50. The larger the house and the higher its market value, the amount payable as premium increases.

Here are some ways to reduce the cost of your property insurance premiums to the extent possible.

First of all, if your property includes a large amount of land along with the building, you could opt for an insurance premium that is calculated not on the basis of land value but based on the rebuilding coasts.

As far as possible, try to make your home disaster proof. The more you secure your house using technological aids such as smoke detectors, sprinklers and burglar alarms, the less implications such threats would have. When installing such features, do consult your insurance advisor. Ensure that your home’s electrical and plumbing systems are upgraded and functioning well.

Since all financial transactions made by an individual are monitored, if you consistently maintain a good credit record, that would, in turn, influence the insurance company to offer you a favorable premium, as the evidence might indicate that you are less likely to default on a bonus payment.

If you live in an area that is known to be vulnerable to earthquake activity or sudden cyclonic storms, you might want to compare the policy types and premiums offered by both governmental and private insurance agencies to see if any can offer you a lower premium.

These are some ways in which you could negotiate with your insurance provider to arrive at a lower annual premium for your property insurance policy.

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