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How to reduce your home insurance costs

Insurance is an important part of protecting your family, your home and your possessions – it’s a way to help make sure you’re as prepared as possible for the unexpected.

What is a home insurance premium?

A home insurance premium refers to the amount you pay your insurer to keep your policy active. You can often choose to pay your premium monthly, quarterly or annually.

The premium for your home insurance policy is calculated based on several factors, including but not limited to, frequency of payment, your choice of cover, the sum insured and your location.

1.  Consider a higher home insurance excess

The excess is the amount you’ll have to pay when the insurance company agrees to pay your claim; typically the higher the excess, the lower the premium and vice versa.

Speak to your insurer to see how much an increase in excess would lower your premium to help decide if this option suits you. You need to be sure you’re in the financial position to afford a higher excess if you ever need to make a claim. 

2.  Regularly review the sum insured of your building and  contents

The sum insured is an amount you choose, when you first take out a home insurance policy. The amount should reflect the cost of re-building your home and replacing your contents. It is usually shown on your Certificate of Insurance and the amount you choose can be updated at any time.

It’s important to regularly review your sum insured shown on your Certificate of Insurance, as your building or contents may have changed since you first took our your policy. You don’t want to overestimate your sum insured and therefore pay a higher premium, or underestimate the sum and leave yourself underinsured. 

Use this handy building insurance calculator and contents insurance calculator to ensure you’re appropriately covered.

3.  Combine your insurance policies

Some insurers offer discounts when you combine different types of cover under the one insurance policy.

For example, if you have building and contents cover on the one policy you may be eligible for a combined policy discount. Speak to your insurer to see if they can offer you a deal for combining cover.

4.  Buy and arrange home insurance cover online

Some insurers offer a discount when you purchase your policy online. Do your research and compare digital offers or ask your insurer what they can offer if you buy your policy online.

Review the range of Home Insurance products provided by Hollard

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Distributed by Commonwealth Bank

Things you should know

This article is intended to provide general information of an educational nature only. It does not have regard to the financial situation or needs of any reader and must not be relied upon as financial product advice. The commentary provided from external companies that are not a member of the Commonwealth Bank of Australia Group of Companies (the CBA Group) does not represent an endorsement, recommendation, guarantee or advice in regard to any matter. The CBA Group does not accept any liability for losses or damage arising from any reliance on external companies and their products, services and material. Commonwealth Bank of Australia ABN 48 123 123 124.

Home Insurance is provided by Hollard Insurance Partners Limited ABN 96 067 524 216, AFSL 235030 (Hollard) and distributed by the Commonwealth Bank of Australia ABN 48 123 123 124, AFSL 234945 (CBA). Hollard is the insurer of this Home Insurance product. Hollard is not part of the CBA Group. CBA does not guarantee the obligations or performance of Hollard or the products Hollard offers. Neither CBA, nor any of its related bodies corporate accepts liability or guarantees payment of any claim or benefit in respect of general insurance products issued by Hollard. CBA may be paid a commission if Hollard issues you with a Home Insurance policy. Details are provided in the Financial Services Guide (FSG) by clicking on the link, or by calling 13 1361 for a paper copy.

For products issued by Hollard, information about the target market can be found within the product’s Target Market Determination.

This information has been prepared without considering your objectives, financial situation or needs. Before making any decision about this product you should consider this information in relation to your own circumstances. A Product Disclosure Statement (PDS) is available at all Commonwealth Bank branches, by downloading them from commbank.com.au or by calling 13 1361 and should be considered before making any decisions about this product. You should also read the Premium, Excess and Discount Guide (PEDG), Key Facts Sheets (KFS) and Financial Services Guide (FSG) clicking on the links, or by calling 13 1361 for a paper copy.