Home insurance: 10 tips on how to save on premiums
Want to save on your home insurance? Here are 10 tips to help you reduce costs—without scrimping on coverage!
1. Combine your insurance policies
If you have a car, cottage, and/or RV to insure in addition to your home, you can save by transferring all of your policies to the same insurer. Most insurance companies offer multi-policy discounts. CAA-Québec’s No-Stress Policy® is a good example.
2. Increase your deductible
What’s a deductible? It’s the amount you agree to pay out of pocket when you make a claim. Say you have a $500 deductible for water damage. In the event of a claim, your insurer will cover cleanup, repair, and replacement costs, but you’ll be responsible for the first $500.
If you’re willing to increase the deductible, your insurer will reduce your premium. Be sure, however, that you can pay the amount if you do file a claim.
3. Adjust your coverage
Take a closer look at your coverage. Is all of it necessary? If you live in a top-floor apartment, you don’t need sewer backup coverage, unless you have a locker in the basement of your building. And if you have a cottage you only use on an occasional basis, you can opt for seasonal home insurance. It’s one of the 10 things you should know about your home insurance. Talk it over with your agent!
Your coverage may also be too high in relation to the value of your property. Take an inventory to help determine the amount of coverage you really need. There’s no point in having—and paying extra for—too much insurance.
4. Have an alarm system installed and connected to a monitoring centre
Insurers just love security! If you have an alarm system (or perhaps even a camera surveillance system), you’ll pay less in home insurance. It’s as simple as that. Why? Because an alarm system cuts down on the likelihood of damage by reducing theft risk, ensuring a faster response in case if fire, and so on.
And when risks go down, so do your costs! You could save even more if your alarm is connected to a monitoring centre.
5. Maintain your home with care
Do maintenance work on a regular basis. A well-maintained home is a home with fewer problems—and fewer claims. And that means lower premium increases on your home insurance.
Some kinds of renovations can even reduce premiums. Replacing your roof or redoing the electricity? Installing a check valve or water leak protectors? Let your insurer know. Getting rid of your wood stove? That’s one less fire risk to worry about! Your insurer will reward your efforts.
6. Be honest
Think you’ll save money by neglecting to share certain information with your insurer? Like not mentioning that new pool you just put in? Or lying about the true age of your roof or hot water heater? It’s a dangerous game to play.
Sure, your premium might be a bit lower. But your insurer could refuse to pay if you make a claim. Or reduce the settlement because you withheld important information. In the end, that little “oversight” could end up costing a lot more than you saved in premiums.
7. Pay off your mortgage
Most insurers offer a discount for homeowners who no longer have a mortgage on their home or condo. It’s another good reason to pay off your mortgage quickly!
8. Take advantage of discounts for graduates and association members
Some insurers offer discounts to members of professional orders, unions, or associations. The same goes for students and graduates at postsecondary educational institutions. Ask your organization about insurance programs. And mention your membership when shopping around for home insurance.
9. Compare quotes
There are a number of insurers in Quebec, and they’re all competing with each other. That’s good news for you! Request at least 3 quotes, and even more if you can. It’s a great way to ensure you get the best price for your home insurance.
When asking for quotes, be sure the products you’re looking at are the same. If one insurer covers personal property for $20,000 and another for $50,000, it’s obvious that insurer number two will charge a higher premium!
10. Shop around every year
Insurers' strategies and premium calculation methods are constantly changing. That’s why it’s a good idea to shop around for home insurance every year.
Your current insurer may reward you for your loyalty. But a competitor could offer you a better price. The only way to know for sure is to compare! To help you, here’s what you need to know when shopping for home insurance (and car insurance as well).
Want to save on car insurance too?
Read this post to get a better idea of what influences your premium. And check out these 6 tips for saving on your car insurance.