As with all insurances, property insurance does not reduce the risk of damage to your home.
There is nothing monthly premiums paid can do to stop a fire, flooding or theft, but it can certainly help by putting you in a better financial position to deal with the aftermath of such misfortunes.
In many countries, property insurance is mandatory for all house owners, but not so in Malaysia. Even so, many choose to have their homes insured because it gives them a better sense of security. And then, there are others who wish they could afford to pay for that extra peace of mind.
The good news is there are some simple ways to reduce the premium cost, and yet, maintain sufficient insurance coverage. First of all, decide what kind of coverage you need, then decide what you can afford. Start off with a premium figure in mind and let your agent try to meet that figure instead of the other way round.
On reconstruction, using low-cost components may end up in higher cost to upkeep your residence due to the lack of quality materials. When it comes to the home, it is particularly imprudent to be penny wise and pound foolish.
When filing an insurance coverage claim, get a number of quotes from different building contractors. Ensure all paperwork and receipts are available, because the outlays may be completely reimbursable.
If there’s a lesson learnt by a recent disaster which has impacted the maintenance cost of your residence, make an updated selection of essential coverage. Those who have experienced hard times will tell you just how tough it is to reinstate their residence once disaster strikes.
Installing a few carbon monoxide and cigarette smoke detectors is a simple and good strategy you can use to convince your insurance firm that your residence is not much of a threat.
Also, materials used in the building could impact the insurance rate. For instance, wood is less expensive than metal to build with, but wood is a bigger safety threat and therefore will invite a higher premium.
During renovation, call your insurance provider and make sure they know the details. Materials such as cement or steel can help save on insurance premiums.
Installing burglar alarm is another strategic move that can lower the insurance cost. While they are not pricey, they do provide an added sense of security.
Another way to spend less on insurance cost is to repay your home’s mortgage. Insurance firms think you may take greater care of your residence once you own it completely.
Getting several insurance plans from the same provider could result in discounts, as some insurers have been known to reduce the charge for recurring customers.
Look for an insurance provider that offers a variety of plans, such as property, life and car insurance. Apart from the rebate, managing insurance policies will also be much easier with a single representative.