Your home is your biggest investment and homeowner's insurance is the best way to ensure that it is properly protected. But did you know that there are ways that you could save on home insurance and still be fully covered?
What are ways to save on home insurance?
You can save money on home insurance by increasing your deductible, shopping for the best rates, seeking out home insurance discounts, reviewing your policy each year, and much more. To learn the reasons behind why these things can save you money, and to learn even more money-saving tips where you home insurance is concerned, we encourage you to read through the full article.
1. Shop around for the best rates
Shopping around for the best insurance rates is a great way to save on home insurance. Accepting the first price can be tempting, but it may not be the best. Your best bet is to compare home insurance rates by getting quotes from an insurance broker who will compare rates and get you good value.
An insurance broker will do the shopping for you. Brokers will shop numerous insurance companies to compare home insurance coverages and rates for your individual needs. You can then choose the policy that best fits your budget and offers the insurance protection you want. Getting insurance with a broker is a fast, easy and an effective way to get competitive insurance rates.
2. Increase your deductible
Increasing your deductible can help lower your home insurance premium. The higher the deductible, the lower your premium. The deductible is the amount of money the insured (that's you!) agrees to pay towards a loss before the insurance company pays. For example, you have just recently suffered a loss to your home of $10,000. The deductible amount listed on your homeowner's policy is $1,000. This means that you would pay the first $1,000 and your insurance company would pay the $9,000 remaining balance.
3. Bundle your home and auto insurance policies with the same company
When you have several types of insurance – such as home and auto insurance policies - with the same insurance company, you can receive an insurance discount which will help lower your insurance premium. This is often called bundling, and the savings can be significant. Typically, savings range from 10% to 20%. Ask an insurance broker about bundling to save.
4. Improve your home security
Having monitored fire and burglar alarms improves your safety and security, and insurance companies provide money-saving discounts when homeowners have these. An insurance broker can tell you which companies provide home security system discounts and the criteria to receive a discount. Generally, monitored alarm discounts can save you between 5% to 12%.
5. Updating your roof and outdated wiring or plumbing
By updating your wiring, plumbing or installing a new roof, you reduce your risk of a fire or water loss. This may help you save on home insurance as some insurance companies offer small discounts when these are updated. Let your insurance broker know if you have made these changes to your home, or are thinking of making these changes, and they will help to determine if you are eligible for a discount.
6. Seek out insurance discounts
Insurance discounts will help save you money. Every insurance company offers discounts and these can add up to substantial savings. Some of the most popular insurance discounts include: non-smoker discount, home security discount, claims-free discount, bundling discount, mortgage-free discount, plus much more!
Since discounts vary among companies your best bet is to speak with an insurance broker who will not only compare prices and insurance coverages, but they will also ensure that you get all the insurance discounts you are eligible for.
7. Review your policy each year
Reviewing your insurance policy each year can help you save on home insurance. Reviewing your policy is like a check-up: You can ensure your insurance continues to meet your needs.
Talk to your broker about your insurance coverages, the value of your possessions, and insurance limits in your policy. Your insurance needs can change over time. This is also a good time to find out if you are entitled to more discounts.
When you make changes to your home, be sure to inform your insurance broker. Changes such as renovations/betterments or installing a new security system can impact your insurance coverage needs and premium. It is best to inform you broker at the time when changes are being made.
8. Pay your insurance premiums annually
Paying your insurance premiums in one annual payment will save you money. It’s tempting to pay your insurance in installments, but fees come with this. Paying your home insurance premium all at once costs less.
9. Maintain a good credit score
A credit score is a snapshot on a person’s credit history and insurance companies know that those with good credit scores statistically make fewer claims on their insurance. For this reason, having a good credit score is among the factors that can lower your home insurance rates.
Note that an inquiry by an insurance company into your credit score won’t impact your credit rating.
10. When you are buying a home, consider the cost of homeowner’s insurance
When buying a home, be sure to consider how the details of your home will impact your insurance. Some of these details include the location of the home, how close you are to a fire hydrant or fire hall, if you have an finished or unfinished basement, if you have a new roof, if it is a newly constructed home. Each of these factors, and others, impact the cost of your homeowner's insurance.
Speak with an insurance broker to help you to determine the cost of your home insurance. The broker will inquire about your home and your insurance needs, shop around the get you competitive quotes, and help you to save as much as possible.
Where can I get a home insurance quote?
You can get a home insurance quote from Morison Insurance. Our brokers are trained and licensed to sell homeowner's insurance in Ontario, and we are here to help find you the best insurance coverage and a price that fits your budget. Get started today by filling out the form on our website, or by calling 1-800-463-8074.
This content is written by our Morison Insurance team. It is provided for general information only. Insurance needs differ from person to person, and this article is therefore not a substitute for professional advice about your individual insurance needs which can be obtained by speaking to one of our brokers.
