Home Contents Insurance Article

Home Contents Insurance in a Recession

During a recession we try to cut extra expenditure from our budget. Many people think that stopping their insurance completely or just lowering the covered amount will save them money. However, this is a big mistake.

Although it may appear to you as a huge expenditure each year, the reality is that if something were to happen to your property or the contents in your home and you have slashed your insurance cover, it ends up costing you much more than if you had kept your insurance intact.

In addition, remember that there are several things that happen during a recession and one that can affect your home is the rise in theft and burglaries. Again, if you have chosen to cut or reduce your insurance cover, then you are left with paying for the loss which will affect your budget far more than having the insurance and paying the premiums each year.

Home and Contents Insurance is important to have all the time, but most importantly during a recession when the worst in people can come out. There are a few things you can do that will lower your premium and still allow you to keep the cover you need. Such as installing an alarm that will deter burglars from your home. If you have not done so already, install locks on your doors and secure all your windows. Again this is a safety measure to deter the burglars and you can often obtain discounts on your insurance when you let the insurer know the steps you have taken to make your home a safer place.

It is important to check with several insurers to see the lowest rate you can get, even if you already have cover. Finding a lower rate with another insurer is a bargaining tool you have with your current insurer. Letting them know what you can get with the other company and asking them to match it as you are a loyal customer and would hate to take your business elsewhere. They will usually try to match or even go lower to keep your business. This is just one option available to you to lower your premiums.

If you still find that the full premiums are too much for your budget during the recession, then consider at least having Contents Insurance Cover. This will protect the belongings in your home such as electronics, clothing, and personal valuables if you are the victim of theft.

Another option to consider is to keep the cover you have, but tweak it a little. What I mean is to raise your excess payable. Now you may think to yourself, absolutely not. However, consider that by raising your excess you will have lower premiums to pay.

These are all ways to help stretch your budget through a very difficult financial time. Insurance is very important to have but there are ways to reduce the cost.

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