For every homeowner, home insurance is a necessary safeguard. It not only protects your property but also your belongings. However, it has been observed that many Canadians are paying quite higher premiums than required.
While we know home insurance is a necessity, there are a number of ways to reduce the cost and that too without sacrificing the coverage. So, in today’s blog you will find and explore various strategies that will help you in lowering your insurance premiums. And ensuring that you still get the most out of it.
Strategies to Lower Your Home Insurance Premiums
Given below are 5 ways in which you can lower your home insurance premiums in Canada.
1. Shop Around for the Best Rates
Shopping around or looking around is probably the first and foremost step. Each insurance company will have multiple policies, packages and their rates will also vary. You cannot buy insurance from the very first agent you see. Instead get several quotes, explore in the market whatever new trends are going. Once you get the quotes, compare them.
Keep in mind it should be apples vs. apples because one change means change in coverage. In fact, you can ask your agent to help you compare multiple packages to find which suits your needs and pocket the best.
2. Increase Your Deductible
Deductible basically means the amount that you pay before a claim kicks in. So, by increasing the deductible you can take more financial responsibility in case something happens. Ultimate effect- your premium will be reduced because insurer risk will be undermined.
Let’s take an example: Your current deductible is CAD 500, but if you increase it to CAD 1000 or 1500 then your insurer can reduce your premium up to 30%. A little disclaimer that in case the need arises to pay deductible you must be able to afford it.
3. Review Coverage Options
For every owner, the coverage and insurance needs will change with time. So you must review your policy every now and then. It can be done annually to see if you are getting an appropriate level of coverage or not. At certain stages you will feel that you don’t need a couple of items so, it’s better to get them removed.
Likewise, adding and reducing a few items from your coverage list will help you avoid paying extra charges.
4. Take Advantage of Discounts
One thing people forget when taking insurance is not asking for discounts. Yes, there are plenty of discount options and people aren’t even aware of them. Here are a few that you can ask for:
- Senior Discounts– People over 55 years of age are eligible for senior discounts. Many providers have this policy.
- Claim Discounts– Many insurance companies provide Claim-free discounts if a person has not filled any claim for a number of years.
- Loyalty Discounts– Staying with a single provider makes you eligible for Loyalty discounts.
- New Home Discounts– If you have a new home, you can get new home discounts.
All these discounts will help you lower your premium. Don’t feel shy asking for them because they can cause a significant dip in your coverage value.
5. Improve Home Security
Every insurance company will love the homes that are secure and less prone to theft. So, if you install security features like cameras, etc, you can convince your insurer to lower your premiums. Given under are a few ways in which you can safeguard your home and at the same time get some brownie points from your insurer:
- Alarm System– Good alarm system means a change of 10-15% lower premium.
- Smoke & Carbon Detectors– If connected via a central monitoring there is a good chance it can lower premium by 5-10%
- Deadbolt Locks– Locks outside can prevent theft and burglary and lower premiums as well.
- Security Camera– Cameras with motion detectors, video bells etc not only provides mental peace but can significantly lower the premiums.
Apart from these there are other ways like sprinkler systems, fire extinguishers etc.
Lowering Home Insurance Premiums in Canada: Final Say
By now you know that in order to lower your home insurance premiums in Canada, you don’t have to take any drastic steps. All you gotta do is take a look around, explore all options, be diligent, look for deductions, make your property well maintained etc.
In short, if you take the right decisions and combine it with a proactive approach you can find a perfect balance between best coverage and affordable rates. So, what are you waiting for? Start being proactive right away!
And for any further queries, FINTRAKK is always here to help! Comment down your questions below.