Your home is frequently your most valuable asset, which you must safeguard. We compiled a list of all possible ways to save money on home insurance. This is the most comprehensive list of house insurance cost-cutting suggestions. This list was compiled with the help of a number of insurance agents. So, let’s get this party started!
1. Modify your content coverage: Do you rent a condo? You can frequently reduce the amount of stuff you cover. If you merely have a laptop and some IKEA furniture, there’s no need to insure your belongings for up to $250,000!
2. Renovations: Home renovations can result in cheaper home insurance premiums, as premiums for older, poorly kept homes are typically higher. Additionally, upgrading only a portion of your home (for example, the roof) can save you money on insurance.
3. Pool: Adding a swimming pool to your home will almost certainly raise your insurance premiums because your liability (for example, the chance of someone drowning) and the value of your home have both increased.
4. Pipes: Insurers prefer copper or plastic piping, so upgrading your galvanized or lead pipes during your next renovation cycle can be a good option.
5. Compare and switch insurance companies: Search, compare, and switch insurance carriers. Because there are various insurance providers and their price offerings for the same policy might vary greatly, use many internet tools and speak with several brokers, as each will only cover a small number of insurance firms.
6. Wiring: Some wiring types are more expensive or less expensive to insure than others. Make sure you’re using permitted wiring types, and avoid aluminum wiring at all costs, as it’s very expensive to insure. Aluminum wire is not covered by all insurers, and those that do will require a comprehensive electrical evaluation of the home.
7. Home Insurance Deductibles: You can choose higher home insurance deductibles to lower your insurance costs, just like you can with auto insurance.
8. Insurance Bundle: Do you require both home and auto insurance? If you buy them all at once, most companies will give you a discount.
9. New House: Check with your insurance to see if they provide a new home discount; some do.
10. Claim-free discount: Some firms offer a claim-free discount in recognition of the fact that you have not filed any claims.
11. Mortgage-free home: Some insurers may reward you with cheaper premiums if you pay off your mortgage in full.
Do you belong to a professional group (e.g., Certified Management Accountants of Canada or The Air Canada Pilots Association)? Then you may be eligible for a discount from some insurance carriers.
13. Seniors: Many businesses provide discounts to senior citizens.
14. Annual vs. monthly payments: Compared to monthly payments, annual payments save insurers money on administrative costs (such as bill mailing) and hence reward you with cheaper rates.
15. Annual review: Review your policies and coverage every year, as new reductions may be available based on your new life scenario.
16. Alumni: Graduates of select Canadian universities (for example, the University of Toronto and McGill University) may be eligible for a discount from some insurance companies.
17. Employees and union members: Some businesses provide discounts to employees and union members ( e.g. IBM Canada or Research in Motion)
18. Mortgage insurance: Mortgage insurance is another name for a Life/Critical Illness/Disability insurance associated with your home only, but you pay extra for the convenience of getting insurance directly when lending the money: mortgage insurance is another name for a Life/Critical Illness/Disability insurance associated with your home only, but you pay extra for the convenience of getting insurance directly when lending the money. A Term Life coverage large enough to pay off your mortgage, for example, is usually less expensive.
19. Opt out of earthquake coverage: Because earthquakes are unlikely in many areas, you may be able to save money by opting out of earthquake coverage. In British Columbia, for example, earthquake coverage can account for up to one-third of a policy’s premium.
20. Wood stove: Using a wood stove implies paying a higher premium because insurance companies frequently evaluate properties with such installations before insuring them. A decision to get rid of it entails a reduction in risk and, as a result, a reduction in insurance costs.
21. Heating: Insurance companies prefer forced-air gas furnaces or electric heat systems. You may be paying more than your friends who have alternative heating sources if you have an oil-heated home.
22. Bicycle: You’re considering about acquiring extra protection for your new bicycle in case it’s stolen while you leave it on the street, such as when you go grocery shopping? It’s possible that your homeowner’s insurance already covers it.
23. Quit smoking: Because there is a higher risk of fire in houses with smokers, several insurers raise their costs.
24. Maintain a clean claim history by avoiding small claims; sometimes it’s better to just fix a minor damage rather than filing a claim: you should consider both your deductibles and the potential increase in rates.
25. Rebuilding vs. market costs: When purchasing an insurance policy, consider your rebuilding costs rather than the market value of your home (market price can be significantly higher than real rebuilding costs).
26. Welcome discount: Some insurance companies provide a “welcome discount.”
27. Avoid living in dangerous places: Because nature has a greater impact on some areas than others, avoid buying a home in a flood-prone or earthquake-prone area.
28. Neighbourhood: Insurance prices are often influenced by moving to a safer neighborhood with a lower crime rate.
29. Centrally connected alarm: Some insurers will discount premiums if you install an alarm that is connected to a central monitoring system.
30. Monitoring: Having your home, apartment, or condo monitored 24 hours a day, seven days a week may qualify you for a discount on your insurance. For example, through a security guard.
31. Fire hydrants and fire stations: Being close to a fire hydrant and/or a fire station can help you save money on your insurance.
32. Loyalty: Keeping a policy with the same insurer for a longer period of time can result in a long-term policy holder discount.
33. Water damage: Avoid buying a house that has had or is likely to have water damage; a check with the insurance provider will help you figure this out before you buy.
34. Decrease liability risk: By taking meaningful steps to reduce your liability risk (for example, fencing off a pool), you may be able to lower your liability insurance costs.
35. Direct insurers: Have you ever worked with an insurance broker or agent? Because they do not pay an agent/broker commission for each policy sold, buying a policy from a direct insurer (i.e. insurers who work via contact center or online) is often (but not always) less expensive.
36. Pipe insulation: Insulating your pipes will keep them from freezing in the winter, reducing or even eliminating the need for insurance claims.
37. Dependent students: Dependent students who live in their own apartment might be protected for free by their parents’ house insurance policy.
38. Retirees: Retirees frequently receive a discount because they spend more time at home than someone who works during the day, making it easier for them to avoid calamities such as fires.
39. Consider inflation when increasing your dwelling limit: Many insurers increase your dwelling limit every year to account for growth in the cost of reconstructing your home. Make certain that this change is accurate and that you are not overpaying.
40. Credit score: When determining house insurance premiums, most firms consider your credit score. A good credit score can assist you in obtaining lower insurance prices.
41. Stability of residence: If you’ve lived in the same house for a particular amount of years, certain insurers may give you a stability of residence discount.