How to lower the cost of your insurance?

How to lower the cost of your insurance?

To get the best rate for your home insurance, there are several tips to follow. At first, it can be advantageous to play the competition, especially by not hesitating to request a home insurance quote from different insurers. Note that it is also possible to use an online insurance comparator, in order to get an idea of ​​the offer that best meets your needs and budget. To lower the cost of their home insurance, the insured can also play on guarantees, for example by choosing to subscribe only a few optional guarantees. The insured must nevertheless be vigilant if he wants to be properly covered in the event of a claim. The amount of the annual premium can also be reduced by opting for a high deductible (amount payable by the insured in the event of a claim). The amount of home insurance can also be reduced if security work (alarm system, smoke detector, etc.) is carried out in the home. Finally, some insurance companies offer reduced premiums to the insured if they combine their different insurances (car, home, smartphone, etc.) within the same establishment.
How much is compensation after a loss?

In addition to the guarantees taken out, the insurer uses several other criteria to determine the amount of compensation due if a loss occurs in the home. In particular, the obsolescence of the goods to be insured is taken into account. The insurer quantifies it by means of a figure (the coefficient of obsolescence, Editor's note) which makes it possible to determine the value of the property at the time it was damaged. This is referred to as use value or residual value. This refers to the result obtained after the insurer has applied the coefficient of obsolescence to the purchase value of the asset. It should be noted that certain objects will quickly be perceived as obsolete by the insurer (household appliances, high-tech, etc.) while others will not depreciate, or even increase in value (jewelry, works of art, etc.) with the years.

When signing their home insurance contract, the insured can choose their level of compensation, whether for movable property or for the home itself. He can thus opt for a reimbursement at use value or for a reimbursement at replacement cost. Regarding housing, in the event of reimbursement at use value, the insurer will consider the reconstruction value. The latter corresponds to the amount needed to rebuild his home to the condition it was in before the loss, minus the age. If the insured has opted for a replacement cost reimbursement, the compensation will then be made in two stages: a first payment corresponding to the new reconstruction value (depreciation deducted) will be made. A second payment will follow, capped at 25% obsolescence. The rest remains the responsibility of the insured.

Homeowners 'insurance typically costs more than renters' insurance.