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4 ways you could reduce your home insurance premium

4 ways you could reduce your home insurance premium

There are ways you can potentially reduce your home insurance premiums while ensuring your most treasured items are still covered.

As the age-old saying goes, you should always expect the unexpected. Insurance is an important part of protecting your family, your home and your possessions – it’s a way to make sure you’re as prepared as possible for the unexpected.

But if you’re looking to free up some cash, there are some ways you could reduce your insurance premium payments while ensuring your essential items are still covered.

1.  Consider a higher excess

The excess is the amount you’ll have to pay when the insurance company agrees to pay your claim. If your excess is $500, for example, and you choose to increase it to $1,000, your insurance premiums will likely decrease but you'll have to pay more should you have a claim accepted.

Speak to your insurer to see how much an increase in excess would impact your premium to help decide if this option will suit you. You need to be sure you can afford the excess if the unexpected does happen.

2.  Review the contents listed

The value of your insured items may have changed since you took out your policy. List out all the items to make sure you have an accurate estimation. There are online calculators available to help so you don’t end up overestimating or underestimating your insured amount.

3.  Combine policies

Some insurers offer discounts when you combine different covers under the one insurance policy. For example, if you have building and contents cover on the one policy with CommInsure you can save up to 10% on your premium. Speak to your insurer to see if they can offer you a deal for combining cover.

4.  Do your research

Different insurers have different offerings, so it’s important to be familiar with what’s available in the market and make sure you have the policy that’s best suited for you. Thinking about what events you most want to be covered for and what you’ll need should one of these events occur can help you narrow down your options.

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. Home Insurance is provided by CommInsure, a registered business name of Commonwealth Insurance Limited ABN 96 067 524 216 AFSL 235030 (CIL). CIL is a wholly owned non-guaranteed subsidiary of the Commonwealth Bank of Australia ABN 48 123 123 124 (The Bank). The Bank does not guarantee the obligations or performance of CIL or the products it offers. Where we refer to ‘our’, we mean CIL. A Product Disclosure Statement is available at all Commonwealth Bank branches, by downloading them from commbank.com.au or by calling 13 2423, and should be considered before making any decisions about this product. You should also read our Financial Services Guide and Privacy Policy.