40+ tips to save on home insurance
Posted On March 30, 2021
Your home is often the most valuable asset you need to protect. We create a list of all savings opportunities associated with home insurance. This list is the most comprehensive perspective on home insurance savings tips. Numerous insurance brokers contributed to this list. So, let’s get started!
1. Change your content coverage: Rent a condominium? Often times, you can reduce the coverage of your content. You don’t need to insure your belongings up to $ 250,000 if you only have a laptop and some IKEA furniture!
2. Renewals: Renovating your home can result in lower home insurance premiums, as home insurance premiums for older, dilapidated homes are often higher. Also, renovating only parts of your home (for example, the roof) can lead to savings on insurance.
3. Pool: Adding a swimming pool to your home will likely lead to an increase in your insurance rates, as your liability (for example, the risk of someone drowning) and the value of your home have increased.
4. Pipes: Insurers prefer copper or plastic pipes; it might be a good idea to update your galvanized / lead pipes during your next renovation cycle.
5. Compare prices: Find, compare and change insurance companies. There are many insurance providers and their price offerings for the same policies can be very different, so use various online tools and talk to multiple brokers, as each will cover a limited number of insurance companies.
6. Wiring: Some types of wiring are more expensive or cheaper than others to secure. Make sure you have approved wiring types and of course avoid aluminum cables which can be very expensive to secure. Not all insurers will cover homes with aluminum wiring, and those that do will require a complete electrical inspection of the home.
7. Deductible for home insurance: Like car insurance, you can also choose higher home insurance deductibles to lower your insurance premiums.
8. Package: Do you need home and auto insurance? Most companies will offer you a discount if you bundle them together.
9. New home: Check to see if the insurer has a new home discount, some insurers will.
10. Discount without claims: Some companies recognize the fact that you have not filed a claim and reward you with a no-claims discount.
11. Home without a mortgage: When you finish paying for your house in full, some insurers will reward you with lower premiums.
12. Professional membership: Are you a member of a professional organization (for example, Certified Management Accountants of Canada or the Air Canada Pilots Association)? So some insurance companies offer you a discount.
13. Older people: Many companies offer special prices for seniors.
14. Annual vs. monthly payments: Compared to monthly payments, annual payments save insurers administrative costs (for example, sending bills) and therefore reward you with lower premiums.
15. Annual exam: Review your policies and coverage every year, as new discounts may apply to your new life situation if it has changed.
16. Former students: Graduates of certain Canadian universities (eg University of Toronto, McGill University) may be eligible for a discount at certain insurance providers.
17. Employees / union members: Some companies offer discounts to union members (for example, IBM Canada or Research in Motion)
18. Mortgage insurance: Getting mortgage insurance when you have enough life insurance coverage isn’t always necessary – Mortgage insurance is another name for life / critical illness / disability insurance associated only with your home, but it pays more for the convenience of obtaining insurance directly when you lend the money. For example, a term life policy large enough to pay for your home is often cheaper.
19. Earthquake protection drop: In many regions, earthquakes are not likely; you could decide not to take earthquake coverage, which could lower your premiums. For example, in British Columbia, earthquake coverage can represent up to one-third of a policy’s premium.
20. Wood stove: Choosing to use a wood stove means higher premiums – Insurance companies often decide to inspect homes with such facilities before insuring them. Deciding to get rid of it means lower risk and therefore lower insurance premiums.
21. Heating: Insurers such as forced air gas furnaces or electric heating installations. If you have a home with oil heating, you may be paying more than your peers who have alternative heating sources.
22. Bicycle: Are you buying a new bike and considering additional protection in case it is stolen when you leave it on the street, for example when shopping? Your home insurance may already be covering it.
23. Stop smoking: Some insurers increase their premiums for households with smokers as there is an increased risk of fire.
24. Clean claims history: Keep a clean claims record without filing small claims, sometimes it makes sense to just repair a small damage instead of claiming it – you need to consider both: your deductibles and the potential increase in premiums.
25. Reconstruction vs. market costs: Consider your rebuilding costs when choosing insurance coverage, not the market price of your home (the market price can be significantly higher than actual rebuilding costs).
26. Welcome discount: Some insurers offer a so-called welcome discount.
27. Avoid living in dangerous places: Nature affects some places more than others – avoid areas in danger of floods or earthquakes when choosing a home.
28. Neighborhood: Moving to a safer neighborhood with a lower crime rate will often count toward your insurance premiums.
29. Centrally connected alarm: Some insurers will recognize in premiums the installation of an alarm connected to a central monitoring system.
30. Follow-up: Having your residence / apartment / condo monitored 24 hours a day can mean a discount on insurance. for example, through a security guard.
31. Hydrants and fire station: Proximity to a water hydrant and / or fire station can also lower your premiums.
32. Loyalty: Staying with an insurer longer can sometimes result in a long-term discount for the policyholder.
33. Water damage: Avoid buying a home that may have water damage or has a history of water damage; A consultation with the insurance company can help you find out before you buy the home.
34. Reduce the risk of liability: Use significant ways to reduce your liability risk (for example, fencing off a swimming pool) and it may result in lower liability insurance premiums.
35. Direct insurers: Have you always dealt with insurance brokers / agents? Obtaining a policy from a direct insurer (i.e. insurers that work through a call center or online) can often be cheaper (but not always) as they don’t pay an agent / broker commission for each policy sold .
36. Plumbing insulation: Insulating your pipes will prevent them from freezing in winter and reduce or even prevent insurance claims.
37. Dependent students: Dependent students living in their own apartment may be covered by their parents’ home insurance policy at no additional charge.
38. Retired: Those who are retired can often get an additional discount as they spend more time at home than someone who works during the day and can therefore prevent accidents like a fire much more easily.
39. Leverage inflation: Many insurers increase your home limit each year when considering home rebuilding cost inflation. Make sure this adjustment is in line with reality and that you are not overpaying.
40. Credit score: Most companies use your credit score when calculating home insurance premiums. Having a good credit score can help you get lower insurance rates.
41. Residence stability: Some insurers may offer a residence stability discount if you have lived in the same home for a certain number of years.