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While your age and gender are mostly beyond your control, they do play a role when it comes to the insurance premium you pay.
READ: Buying a Home in 2021? Everything Your Insurance Company Thinks You Know, But You Probably Don’t
There are a few other factors that can also determine just how low, or high, your insurance premium is. These include but are not limited to:
Your home’s location
This is probably one of the most important factors when it comes to your insurance policy. If the property is in a high-risk area for burglary and theft for example, it will affect your premium. Do your homework on your chosen area before investing in any property.
Marital status
If you’ve recently been married, it’s a good idea to review and combine your home insurance. Speak with your insurance broker about adding your spouse to your policy. If you don’t have home insurance, now is the right time to invest in a policy.
Try this handy building calculator tool to help you make an inventory of all the structures on your property. Or click here to have a professional risk assessment done.
Claims history
If you’ve previously filed multiple claims it will affect your rate and could see you paying much more for coverage. Always try to reduce your risk and keep a good record when it comes to your insurance.
Credit history
Insurers will run a background check with your consent and if you have poor credit scores, it will mean higher property and contents insurance rates. Always ensure your finances are in good standing to avoid being penalized.
Home improvements
While building an addition on your home or installing a swimming pool or fireplace may increase your home’s value, it will also increase your insurance premium if your sum insured is increased accordingly. Make sure you are covered adequately and not underinsured, which could leave you out of pocket in the event of a claim for damage or loss.
Safety and security
Added safety features like an alarm system or electric fencing means your insurer can offer you a lower rate. Invest in these, or expect to spend the money on a higher monthly premium.
Key things to note if you decide to switch insurers:
According to Santam’s underwriting team, it is advisable that you shop around for an offer that suits your needs and your pocket best.
"Get various quotes and find an insurance option that works for your needs and your budget".
"Also ensure that your policy cover and terms and conditions of your new insurer is similar or better than your previous insurer. For extra peace of mind, ensure that your new cover is in place and active before you cancel your old insurance.
"Make sure your address is correct, the sum insured is adequate and the correct wall and roof construction of the house is declared".
"If you have any questions about building insurance, speak to your broker or contact us on 0860 444 444. Remember: if you’re an existing Santam client, you can add new items and make changes to your cover on the Santam client app.
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