Home insurance unlike car insurance is not a legal requirement, a fact which is not known by many customers. Home insurance is an important way of protecting financially in the case when the home or personal belongings are destroyed in the case of natural disaster and also in the case of burglary. There are some key features of home insurance which include saving tips on premiums.
Home insurance is mainly of two types. The first one known as building insurance covers the actual structure of the property, whereas the second one known as the contents insurance covers the items or belongings of the home such as furniture. Many insurers provide both types of insurance in one policy and so there is no need for separate cover. Some insurers automatically provide free contents insurance when the customer takes out their building insurance.
In case the customer has taken out a mortgage on home then the mortgage lender will usually insist that there must be at least possession of building insurance with the customer. This may seem to be the easiest and quickest way to buy home insurance but really this may not be the best option.
Depending on the policy and insurance provider chosen by the customer the home insurance cover differs. The customer must opt for a policy which is flexible, suitable and has adequate level of protection. The customer is not worth buying a cheap home insurance policy if the customer is not covered as comprehensively as expected.
The customer pays a monthly or yearly premium in return for the insurance cover. If the customer chooses to pay annually rather than monthly by direct debit then it costs less expensive to the customer. The home insurance premium of the customer also depends on a number of factors including security features, postcode and risks of flooding. In fact lower the risk of loss or damage the lower will be the premium of the customer. For insurers security is particularly important point. The premium of the customer can be reduced by the insurance providers if the customer has certain security measures in place. These security measures are like new door locks, alarms, neighborhood watch schemes, etc.
The customer is offered by any insurer by a different quote and it may be the case that the difference between these can be large. The customer must compare both the premium and the level of cover. If the customer does not claim on the home insurance the previous year then this entitles to a reduction in the premium. There are many insurers which offer discount of up to 30%. The customer must really checkout the excess which in fact is amount of any claim that must be paid ad effectively dissuades from claiming on the insurance for every incident that occurs.