Homeowner’s insurance is compulsory in Australia, and most countries in the world. Homeowner’s need to be insured from possible damaged to their property – accidents, fire, storms or even act of terror. Insurance companies realizes the fear of homeowners about the loss of their loved property, and are scrambling hard over each other to offer the best rates and coverage to their potential customers.
However, Australia has been experiencing serious losses on properties over these last few years.
Natural Disasters causes unprecedented damage to the housing market, and the insurance companies have to bear the brunt of claims after claims from the homeowners – their losses have been piling up. As a result, rates on homeowners insurance have been increasing, and insurers are a lot more careful on who to offer their coverage to. Even those who already has coverage found themselves being slapped with a 10-20% increase in premiums when they renew their policy!
With these issues in mind, it will be good to have the cheapest homeowner’s insurance!
Here are a few tips to finding the cheapest coverage:
#1 Find a good agent- Some people believe in doing everything themselves, even when shopping for insurance. Not a good thing to do is you want the cheapest homeowner’s insurance. Get an insurance agent to help you. We would recommend Youi because this company is proven to be one of the best in Australia.
But beware – not all agents are there so serve you. Some will deliberately quote you more expensive insurance plans just so that they make more commissions! Some agents also have little knowledge about coverage plans, and the exclusions and limitations. Ask around, get referrals from your friends and family members. When meeting these agents, check their credentials and years in the industry. Ask these agents to design and come up with the best coverage for your needs. Then pick one.
#2 Combine policies in hand with one provider – Most often than not, we have more than just one insurance. Auto, homeowners, health, travel etc. Sometimes, by combining all the insurances with one provider, the insurer could provide us with a cheaper quote. Ask your agents if this is possible.
#3 Buy as a team – Moving into a brand new neighborhood? try talking to other new homeowners and see if they are willing to join a ‘bulk purchase’. When 10 houses are looking for homeowner’s insurance, chances are insurers are willing to offer lower rates!
#4 Check for regulations – Different cities have different requirements on homeowner’s insurance. Always check with the regulating departments in the city before signing any insurance plan.
#5 Improve your property – Insurers are more willing to provide cheaper coverage is your neighborhood has low crime, and the property itself is in good shape. Try discussing with the neighbors about setting up night-watches and community police to help control crime, or organize a weekend ‘neighborhood improvement’ session (everybody paints house, build fences, mow lawn, or clean drains). These would also help lowering your homeowner’s insurance as well.