subject: Consider Combining Your Insurance [print this page] Most people own several different types of insurance but seldom think of saving money by combining them. Lots of agents will actually recommend doing that to save you money, and to ensure they have your business in several areas of insurance.
Homeowners need to have insurance for both house and contents. It is always best if insurance policies for both are taken out with the same company.
There are three main reasons for this; it will work out cheaper, the policyholder can be sure that everything is covered, and in the event of a claim it will make the process much easier.
Nearly all insurance companies offer a discount if more than one policy is held with them, and several companies also offer a combined house and contents insurance policy. This is often to the value of around 15% less than the cost of having separate house insurance and contents insurance policies. Multiple policy discounts are a great way to make savings on insurance.
Insurance companies may offer other discounts and rewards which can be attractive to purchasers. Flexible payments and policy excess options can vary from company to company.
Different companies have slightly different definitions of what are contents and what is part of the building. Although in general, buildings insurance includes permanent fixtures and fittings there are some grey areas about items such as light fittings which some home insurance companies classify as part of the building and others classify as contents.
By having building and household contents insurance with the same insurance company it does not matter how they are defined, as everything will be covered by the total combined policy.
Combining building and contents insurance can make life easier, as there is one payment, one renewal and one company to deal with. When a claim for both home and contents is made for the same event there is only one excess to be paid.
In the event of a homeowners insurance claim it should also make the process simpler and therefore quicker. This means there is less time spent on administrative tasks and more time for important things.
Different house and contents policies will have different options that will make some more attractive for each persons personal circumstances than others. These include options such as a choice of paying monthly or annual premiums, automatic legal liability cover, and cover for visitors contents.
There may be optional add-ons for injury to pets and burning out or fusing of household electric motors. In addition to the savings that can be made by combining house and contents insurance, there are other ways to lower the cost of premiums.
Homeowners may be eligible for a multiple policy discount if they have other insurance products such as car insurance with the insurance company. Installing extra security at a home will often reduce premiums, and a higher excess can be chosen to reduce premiums.
Besides combining multiple insurance policies with one company, there are many other ways consumers can reduce their insurance costs.
Safety accessories added to your home and vehicle is a great way to save money. For example, adding an alarm system helps reduce the possibility of theft. Vehicle owners also have the option of adding a theft-tracking device to reduce costs even more.
The fewer claims you make, the less your insurance costs will be. Carefully calculate and compare the cost of submitting a claim against paying for damages to your home or vehicle out of pocket.
You may find that the adjusted cost of your insurance is higher than the cost of the damage. Some insurance companies do offer forgiveness policies if it is your first claim.
The less you use an item, the less likely you are to damage it. For example, a show car that sits in your garage and is only used for occasional weekend drives costs less to insure than a vehicle used for a daily commute.
The same applies to homes. If you only spend a certain percentage of the year in your home, you may qualify for a reduced policy.
Drivers and homeowners alike receive reduced insurance premiums based on their age. For example, teenage drivers are less experienced and are more aggressive on the road.
Therefore, teenagers pay more for car insurance than older, more mature drivers do. Homeowners also pay less for insurance once they reach a certain age. Check with your insurance provider to ensure you are not paying more than you should based on your age.
by: Tom Selwick
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