The latest budgeting advice from Bills to Pay founder Kris Bondin, qualified CPA.


What you need to have to protect yourself
How you can save on premiums

Many of your listeners may have you noticed that the cost of their home insurance increasing significantly over the last several years. An insurance policy today is putting the squeeze on household budgets, particularly due to the size of the yearly premium. Yes, there are pay by the month policies, but be mindful you don’t pay an extra amount for this benefit.

There is a difference between home insurance and contents insurance. Home insurance will protect you from events such as fire, storm and rainwater, generally it covers bricks and mortar, the structure supporting your home (buildings insurance). This differs to contents insurance, where you may claim for contents that also leave the insured address. 

To protect yourself of such events, you need to take into account temporary accommodation if your home becomes inhabitable. 


Here are some ways to reduce the cost of your homeowner’s insurance. 

1. Increasing Excess

If you increase your excess in the event of a claim, your total policy will reduce. You will see more insurance companies today give you options as to how much excess in the event of a claim you want to pay. This is the insurance company giving you the option to share the risk with them and in return reduce your overall policy cost. Some policies may have zero excess but higher premiums, others would have excess in the thousands but have a lower premium.

2. Combine Home Insurance with other Insurance Policies

Get a discount when you combine multiple policies from the same company. In most instances, there is a discount on the second if not both policies when you combine both policies, such as car and home.

3. Ask About Other Homeowner’s Insurance Discounts


Make sure you’re receiving all the discounts for which you’re eligible. For example, discounts exist for smoke detectors, deadbolt locks, alarms or fire alarm systems, CCTV, home monitoring, etc. 

4. Review your annual policy for changes

When you home insurance policy is due for renewal, check that your current policy is still up to date and no changes need to be made to the policy. There could have been some changes around the home which you may have forgotten to notify the insurance company of.

5. Shop Around 

At renewal time, shop around for better premiums. Please keep in mind that you may be receiving a longevity discount if you’ve been with your current insurer for several years. Ask the current insurer of this discount before changing policies and take this information into account when shopping around and doing your comparisons. 

The home insurance tips are of general nature only. The tips provided have been prepared without taking into account your individual objectives, financial situation or needs.


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