But the cost of household insurance is getting more expensive today, in the following document we will be discussing how we can reduce household insurance premium.

1)  Increasing the deductible about may reduce the premium since you are sharing some risk with the insurance company.

2)  Buy your insurance from a single company. You may consider purchase your personal insurance and car insurance as well as household insurance from the same insurance company.  Some insurance companies offer 10% discount if you buy more than 1 type of policy from them.

3)  Home Security System. Some insurance company provide discount for household install with home alarm system such as smoke detector, fire alarm and burglary alarm system.

4)  Do not buy insurance coverage that you don not need. If you are staying at hilly area, you don’t need flood coverage.

5)  Review your coverage from time to time.  Some of the coverage might not be necessary now. For example you may put all your jewelries in a safety box company, so you do not need coverage at home anymore.

6)  Get quotation from different insurance company.  Comparison always provides the best alternative, but make sure the coverages are the same so that you can compare fairly.

For example, you may insure your household content for a total of $30,000.00 against fire for a period of a year.  Once the premium paid, if your house caught fire and destroy the content in the house, you are allowed the claim $30,000 from the insurance company. Of course this is still subject to the approval from the insurance company after going through all the investigation process.

It is a fix term insurance where you pay a fix amount of premium in return for a sum of money paid to you in the event of loss of assets due to crime, fire or others natural disaster. It is a yearly renewable insurance.

It is worth to mentioned here that natural disaster or act of god is usually an optional insurance on top of the general home insurance, since it may not happened in certain area depending on location ( If you are staying at hilly area, you don’t need a flood insurance coverage, If you are not staying at the earth quake belt, you don’t need an earth quake insurance ). Others optional insurance including war and riot.