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10 Tips for Finding Affordable Building Insurance

Posted on 1 Oct, 2024

Building insurance is the most crucial part of property ownership. It ensures financial protection in case of damage or loss to your home’s structure or permanent fixtures. In an economy where the cost of essentials is skyrocketing, getting a low-cost building insurance policy without compromising on coverage is important.

This blog provides 10 tips for ensuring a cost-effective policy without sacrificing the protection you may need.

Builidng Insurance

The following pointers will help you pick the right policy that meets your requirements and budget —

  • Understand What You Need

    Knowing exactly what your property needs are should precede any search for building insurance. Every house is unique, and so are its insurance requirements. Start by calculating precisely what kind of protection you actually need. You might want protection from natural disasters if you happen to reside in a flood-prone area, while others may feel that protection from thieves or vandals is key. Knowing what is important will help avoid redundant add-ons that raise your premium.

  • Compare Multiple Quotes

    Never assume that the first quote you get is the best one. The insurance market is very competitive, and various providers charge different rates for similar levels of coverage. Comparison websites allow you to garner quotes from a multitude of insurers. This will let you see a range of options to get the best deal.

  • Consider Bundling Policies

    Consider bundling if you already have other insurance policies, like content insurance. Many insurers offer discounts for combining several policies, making this an easy way to save on building insurance costs while ensuring complete coverage.

  • Don’t Underinsure

    You may be tempted to pay a lower premium by under-declaring the value of your property, but that may eventually be more of an out-of-pocket cost to you. If your property is underinsured, even a small claim can leave you with considerable out-of-pocket expenses. Be sure the valuation on your property is for full replacement costs, not just the market value, so you feel secure in case of a calamity.

  • Opt for a Higher Deductible

    Increasing your deductible is one of the best ways to bring down your insurance premium. The deductible is what you must pay out-of-pocket before your insurance policy kicks in and starts to pay. Hence, higher agreed-upon deductibles mean lower premiums. Just ensure that the remaining amount of the deductible, should you need to make a claim, will not be too high to pay.

  • Maintain Your Property

    There is less likelihood of damage to a well-maintained property; therefore, premiums can be lowered. Be on the lookout for leaks, cracked walls, and faulty wiring in your building. The more quickly you fix these problems, the more likely you're going to dodge bigger, costlier repairs later and make the risk profile of your property more attractive to underwriters.

  • Take Advantage of Discounts

    Most insurers offer discounts for several reasons. For example, if your building is fitted with smoke detectors, burglar alarms, or fire extinguishers, you can get a discount on the premium. You may also get a discount if you have a no-claims history or are a long-term customer. Ask your insurer about discounts.

  • Regularly Review and Update Your Policy

    Your insurance needs may change over time, especially if you have renovated the building. Additional coverage may be required when adding rooms or implementing security measures within your premises. Maintaining current status through constant review and updating will ensure that you are not paying useless premiums and that your property is fully covered.

  • Opt for a Policy with Flexible Payment Options

    The ability to spread the cost of payment through flexible options available from your provider makes managing your insurance costs much easier. Some allow you to pay month by month without extra charges, spreading the cost all through the year rather than making a high upfront payment on your insurance premium. This could be extremely beneficial, especially when on a tight budget.

  • Consider a Specialist Insurer

    While many people will instantly go to the mainstream insurance provider, consider the specialist insurer, particularly if your property is unusual or of non-standard construction. Specialist insurers can, therefore, offer more competitive rates or even more appropriate coverage options for what you may need. Don't hesitate to look beyond the big names in insurance.

Conclusion

The process of finding a good building insurance policy does not necessarily have to be complex. By clearly understanding what you want and comparing several quotes, including bundling policies or increasing your deductible, you can avail of the right insurance plan for your building at a reasonable premium. Remember to review your policy regularly because existing discounts are always subject to change, and look for those that could work for you best. Now is the right time to review your current policy and put these tips to work. It could save you more while at the same time keeping your property protected.

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This contains only an indication of the cover offered. For complete details on risk factors, terms, conditions, coverages and exclusions, please read the sales brochure carefully before concluding a sale.ICICI trade logo displayed above belongs to ICICI Bank and is used by ICICI Lombard GIC Ltd. under license and Lombard logo belongs to ICICI Lombard GIC Ltd. ICICI Lombard General Insurance Company Limited, ICICI Lombard House, 414, Veer Savarkar Marg, Prabhadevi, Mumbai – 400025. . IRDA Reg.No.115. Toll Free 1800 2666. Fax No – 022 61961323. CIN (L67200MH2000PLC129408). customersupport@iciclombard.com. www.icicilombard.com. (Property Insurance, 1016 , IRDAN115RP0006V01202021)