06 May 5 Ways To Save On House And Contents Insurance
When things go wrong in your home, it’s helpful to know that a house and contents insurance policy may cover any repairs or replacements to your property and possessions. To help you save money on house insurance and contents insurance, here are 5 things to look out for.
1. Avoid over-insuring
While under-insuring home and contents can leave policy holders out of pocket in the event of a loss, over-insuring is just as detrimental to your finances. Over-insuring usually means the property’s value has been overinflated, and it’s been insured for a much higher amount than it would cost to replace. Simply put, paying a higher insurance premium than what the property is valued at is a waste of money.
But aside from the cost, over-insurance is a concern for insurance companies too. It can lead to policy holders being tempted into making false claims in order to claim a higher amount and turn a profit – in other words, commit insurance fraud. To safeguard against insurance fraud, NZ insurance companies will only reimburse policy holders for the actual cost of the loss they have incurred.
So when it comes to house and contents insurance, the amount reimbursed will be based on the total replacement cost or the sum insured. That’s why it’s so important your house and contents are correctly valued in the first instance. For peace of mind knowing you have the right amount of coverage – and that you’re not paying more than you need to or less than you should – have a Max Insurance Adviser review your house and contents insurance policy.
2. Choose a higher excess
Increasing your excess – agreeing to pay more in the event of a claim – is one of the easiest ways to reduce your insurance premiums. Excess is the agreed amount that you’re required to pay towards any claim you make. Different insurance policies have different levels of excess. Most house and contents insurance policies have a standard excess of between $250 and $400, which is the amount you’ll pay if you make any claim.
A voluntary excess lets you choose a higher excess in lieu of a lower insurance premium. This is an ideal option if you don’t claim often, but it does mean you’ll need to pay a larger amount when you do make a claim. Be sure to review your policy documents regularly, to ensure you’re clear on what your excess is.
3. Skip the small claims
The number of claims you make may affect how much your insurance premiums cost. That’s because your claims history is one of the many factors that insurance providers take into account when calculating your insurance premium. Too many claims and your insurance provider may regard you as a high risk and adjust your insurance premium upwards to cover the perceived risk.
One way to avoid being penalised for making too many claims is to avoid claiming for anything small and to only claim for major losses. It also makes sense to skip small claims if you’ve opted to pay a higher excess, as you don’t want to be claiming for something that costs less than the excess you’re required to pay.
Not claiming could also help you save money as you may qualify for a no-claim bonus, where your insurance provider rewards you with a discount for not making any claims in a set period of time.
4. List any home improvements
Renovating a home or making home improvements can increase your home’s value. But that’s not all. Some home improvements actually help reduce house and contents insurance premiums too.
A home security system, for example, helps reduce the risk of break-ins and provides protection for your possessions and your family. Upgrades to electrical or plumbing systems not only improve your home’s efficiency, they can also reduce the risk of fire and water damage. While taking steps to protect your home from natural disasters – like fitting a new roof or installing shatterproof glass in windows – is just another way to further reduce the risk of a claim in the event of a natural disaster.
All of these actions could help lower your insurance premiums.
5. Shop around and compare
House and contents insurance policies vary quite significantly from provider to provider, so it pays to shop around and compare policies and inclusions. At the same time, choosing a house and contents policy based purely on price alone isn’t always the best option. So do your homework before deciding.
Here are some ways to find the best insurance deal available to you:
- Ask friends and relatives for recommendations.
- Use online ratings and read online reviews.
- Get at least three insurance quotes to compare.
- Put insurance providers’ customer service to test while you’re shopping around.
- Get in touch with a Max Insurances Adviser to go over your options and help you compare policies.
Find the right insurance cover for your needs
At Max Insurances, we know that not everyone has the same insurance needs. Which is why we work hard to understand your individual needs, identify risks you may be exposed to, and then help you find the best insurance NZ wide. What’s more, we’re committed to ensuring you don’t pay more than you need to, and that your claims are handled efficiently, by liaising with the insurance provider on your behalf.
Talk to our team about NZ insurance that is designed to fit your needs and your pocket. Get in touch to book an insurance review or if you have any questions about house and contents insurance.
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