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The purpose of a fire insurance policy is to cover for any destruction or loss caused to your property by fire. Of course, your personal belongings are also included in the same. However, your claim will be accepted only if the reason behind the fire breakout is accidental and unintentional. In the present market of insurance policies, there are over a dozen companies active. Most of the insurance companies offer fire insurance policies. You can easily compare their features and benefits online, without going anywhere.
By making a comparison, you will get to know about the policies that are more suitable for your needs. It will make the process of selection easier for you. Besides comparing their features, you must also focus on how to save money on a fire insurance policy. There are some tips you can follow to reduce the amount of premium being charged by the insurance agency. So, let us take a look at some of the effective methods.
Tip# 1: Get smoke detectors installed
As we know, the purpose of smoke detectors is to detect the presence of smoke or fumes around the sensors. Once you install smoke detectors in your property, the risk of property damage due to fire breakout is reduced significantly. The alarm system activates the water sprinkler outlets, which prevents the spread of fire in the other regions of your property. This is how you can make your property less vulnerable to fire. Such properties are counted among the low-risk category, and for this reason, the insurance companies charge a lesser premium. They do not mind offering a little discount on their policy.
Tip# 2: Aim for higher deductibles
For those who do not know, a deductible is an amount you agree to pay before the insurer releases the cover amount. Let us suppose you chose INR 3,000 as the deductible amount at the time of buying the policy. Now, at the time of making a claim, you will have to pay INR 3,000 from your pocket. Once you do that, the insurer will release the rest part of the claim amount. When you decide to pay a higher deductible, insurance companies offer you some discount in return. In short, the deductible amount you choose is inversely proportional to your policy’s premium.
Tip# 3: Purchase the policy from the same insurer
If you are already a customer of an insurance company, it puts you in a better position to ask for some discount on their fire insurance policy. While renewing your existing policy, you should try to stick to your current insurer. By continuing your relationship with the same insurer, you might be able to strike a better deal. Most of the insurance companies offer some discounts to their existing customers. Nevertheless, it is still crucial that you compare the options available in the market. In case you find a policy cheaper than your existing one, you must give it a thought.
Tip# 4: Do inform about the improvements
In case you have recently made some improvements in your property, which are aimed at making your property less vulnerable to fire-related hazards, you must inform the insurance company about the same. They might reduce the premium of your fire insurance policy. But, before they reduce the premium, the property will be thoroughly inspected by professionals sent by the insurance company. So, make sure the fireproof equipment and devices installed by you are of good quality.
Tip# 5: Buy in bundles
If you haven’t purchased any kind of insurance policy yet, the best thing you can do is buy in a bundle. In the present time, it has become absolutely necessary to have health insurance, life/term insurance, and home insurance policies. More or less all the major insurance companies sell a wide range of insurance products. When you buy two or more policies from the same insurer, you are more likely to avail a discount on the whole package. All you have to do is include a fire insurance policy too. Without any doubt, it is a smart way to spend your money on insurance policies.
So, those are some of the methods using which you can save money on fire insurance policies. Keep them in mind, and you will surely end up saving some good amount of money. At the time of choosing items that you want to get covered under the fire insurance policy, you need to be a wise customer. You should refrain from selecting items that have a high depreciation rate; such as electronic devices and electrical appliances. By adding such items you are only inflating the premium amount of your policy. Likewise, you must not choose add-on covers that are of no use to you. These are some of the smart ways you can go for.
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