Home insurance is essential to protect your property from theft and disaster, especially for owners.
When you start shopping for your home insurance policy, keep in mind that costs can vary for several reasons. Some factors can’t be changed, such as where your house is located and past incidents in your neighbourhood, but you can play with others for an opportunity to substantially reduce your bill.
Here are five ways to save on your home insurance.
1. Bundle your insurance
To reward your loyalty, most insurance companies offer discounts of around 15%, or $500 to $600, when you bundle your home and car insurance. Among other advantages, you’ll only have to deal with one company when paying your bills.
2. Invest in prevention
Insurance companies reward owners who prioritize prevention. For example, the amount of your insurance premium will be reduced if you put in an alarm system connected to a central emergency service or a surveillance camera system. These devices limit the risks of theft and damage.
Anything that helps to prevent water damage is also likely to reduce your insurance premium: replacing a water heater that’s over 10 years old, putting a drain pan under the water heater, installing back-flow valves and a leak detector, replacing the roof and windows, etc.
3. Match protection and deductibles to your needs
It’s worth the time to study closely the coverage in the bids you receive, because some of it may be unnecessary. For example, if you live in a condo on the 10th floor, you don’t need coverage for sewer back-ups!
If you make a detailed inventory of your possessions, you’ll also have an accurate idea of the value of insurance you need. Don’t forget to mention renovations made in the last few years so that the amount to rebuild takes them into account.
If your budget allows, you can increase the deductible to be paid in case of a claim. This will lower the cost of your insurance premium.
4. Shop for your home insurance
It’s a good idea to ask for three bids to see a range of products and compare their respective advantages. Since several factors influence the cost of insurance premiums (supply and demand, prior claims, etc.), shop around every year to make sure that you’re always paying the best price.
Certain insurance companies even offer discounts to target groups of people, like the members of a professional order, students, unions and so on, so ask your advisor.
You can also call on an insurance broker, who will consult several insurance companies for you. Note, however, that brokers have agreements with only certain insurers and that you may not get a representative picture of what’s offered. Ask him who his partners are.
5. Make sure your property is well maintained
When repairs are needed, don’t put them off! This will keep you from having to make a claim or, worse, from your insurance company refusing to insure you until the work is done. A roof in good shape, stairs that meet regulations, an electrical system and a fireplace that comply with the standards… As an owner, you are responsible for your home’s maintenance and compliance.
Once you have your insurance contract in your hands, digitize it into Edwix and get a reminder when it’s time to renew!
