Top Cost-Saving Tips For Home Insurance In Singapore

A practical approach to lowering your premium is to increase the deductible (which is also known as excess) on your homeowners insurance, indicating the amount you'll be accountable for in the case of a claim.

Opting for a heightened deductible will leave you with more funds in your pocket monthly, rather than channeling them to your insurer. It's wise to conduct a thorough cost-benefit assessment to evaluate if the potential savings align with your specific situation and to confirm that you have enough savings to cover a larger out-of-pocket expense if a claim does arise.

Inquire about less common discount opportunities because if you don't ask, you might not discover the various potential savings you qualify for. Some insurance providers extend extra homeowners insurance discounts if you:

• Maintain a smoke-free household

• Are a recent homebuyer

• Opt for automatic premium payments through your bank

• Select paperless billing

• Pursue specific professions like teaching, engineering, or firefighting

The amount you can save by bundling your home and other categories of insurance (e.g. broadband plans, car, etc.) varies depending on several factors, including your insurance provider, location, coverage needs, and the specifics of your policies.

However, bundling typically leads to significant discounts, often in the range of 10% to 25% on each policy. It's important to compare quotes from different insurers to determine the exact savings you can achieve through bundling, as it can vary widely from one company to another.

While enjoyable, owning what your insurer categorizes as an "attractive nuisance" – like trampolines, swimming pools, or playground equipment – may contribute to higher homeowners insurance costs.

An attractive nuisance is something on your property that might entice children to play on it. In the event of injury, you could potentially face legal liability. Since insurers view this as a risk, removing these items can lead to cost savings on your homeowners insurance

It might come as a revelation, but your credit score plays a substantial role in shaping your home insurance premium. Insurers can employ a credit-based insurance score to assess your policy rates. Should your insurer deem your credit score as subpar, it could result in higher premium costs.

In case you find that your credit score falls short of your expectations, thoroughly examine your credit report for any inaccuracies. You can enhance your score by following prudent practices like ensuring prompt loan payments and diminishing credit card balances.

Premiums for the same level of homeowners insurance can exhibit significant disparities among various insurers. It helps to do a comparison of quotes from different home insurance companies to assess potential savings by switching providers.

If you're uncertain about where to begin, MoneySmart offers a compilation of the finest home insurance options, or you can choose to utilise any available online tools on your preferred insurance websites where you can input basic information to obtain rapid home insurance quotes. Alternatively, you can engage an independent insurance agent or broker to conduct this comparison for you.

While it might be tempting to submit a claim to your insurance company for minor incidents, it could prove more beneficial in the long term to cover these smaller expenses out of your own pocket. This is because certain insurers provide discounts to policyholders who maintain a claim-free record for a specified period, typically a few years.

These discounts might ultimately surpass the benefits of making claims for minor damages. For instance, if you file a claim for wind damage, even if the damage is relatively minor, your annual insurance costs could increase, potentially resulting in higher payments due to these rate hikes compared to what the insurer would cover for your claim.

When you initially purchase your homeowners insurance, it's based on your home's value at that time. However, it's essential to recognize that home values tend to appreciate over time. Consider this scenario: If I were to experience a house fire today and my coverage was based on what I bought seven years ago, my insurance would only cover roughly half of the damages. That would be an unpleasant surprise, wouldn't it?

Hence, it's crucial to annually reassess your policy to ensure it still aligns with your evolving needs. Your home may have increased in value, or you might have added a deck or garage that requires coverage. Furthermore, you might have previously secured insurance for a valuable possession that you no longer own, presenting an opportunity to reduce costs by removing that coverage.