Home insurance is one of those necessary expenses that we put up with for the financial protection and peace of mind it provides against unexpected events. At the same time, most of us wouldn’t mind finding a way to reduce our premiums.
In this post we’ll go over various tips to help Ontario homeowners lower their home insurance costs without compromising on coverage. From bundling insurance policies to increasing deductibles, we’ll cover everything you need to know to save money on your home insurance.
Bundle your insurance policies
Bundling your policies is one of the simplest ways to save on your insurance. If you already have a car insurance policy, call your broker to get a quote for home insurance. Insurance companies often offer discounts for multiple policies. The most common way of bundling is to combine your home and auto insurance policies, but don’t stop there. Many other policies can be bundled, such as adding the coverage on other properties you may own. Bundling can potentially yield significant savings on all your premiums.
Working with an insurance brokerage like McLean & Dickey Insurance can help simplify the process of bundling your policies. We have access to multiple insurance companies allowing us to find the best rates and coverage options for your specific needs. By leveraging our expertise, you’ll ensure that you are getting the best deal on your bundled insurance policies.
Opt for a higher deductible
Increasing your deductible is another effective way to save money on your home insurance. The deductible is the specific amount that you agree to pay before your insurance policy kicks in to cover the rest of the claim. By choosing a higher deductible, you are taking on more risk, which can lower your premium.
Before increasing your deductible, make sure you determine how much you can comfortably afford to pay in the event of a claim. Discuss your options with your insurance broker who can help you find the optimal balance between lower premium and a higher deductible.
Look After Your Home
Maintain your home to decrease the likelihood of claims as a result of fire, water, theft and weather-related damage. Fewer claims can lead to lower premiums and keeping your property in good condition will help you address problems before they become a serious issue.
While upgrading your electrical, plumbing, heating or roofing may not necessarily qualify you for a discount, if your older home has never had any of these upgrades, you may be paying a higher premium. Insurance companies may see your home as being a higher risk if it has older plumbing, heating or electrical systems.
Install a monitored alarm system
Installing a monitored alarm system in your home can not only enhance your security but also result in lower home insurance premiums. Monitored alarm systems are connected to a central staffed monitoring station that can quickly respond to any security breaches or emergencies.
Insurance providers view homes with monitored alarm systems as less risky, as they are less likely to experience burglaries or other security-related incidents. As a result, they may offer discounts on insurance premiums for homeowners with monitored alarm systems. Be sure to inform your insurance provider about the installation of your alarm system to potentially qualify for these discounts.
Evaluate your coverage annually
Ensure that your home insurance policy reflects your home’s current value including any large purchases or renovations and upgrades you may have made. Advise your broker of any major changes that might have an impact on the replacement value of your home.
Pay attention to your credit score
Your credit score can play a role in determining your home insurance premiums. Insurance companies consider credit scores as an indicator of financial responsibility and risk. Insurance companies have discovered a connection between an individual’s credit history and their likelihood of filing an insurance claim. A higher credit score can result in lower premiums, as it demonstrates a lower likelihood of filing claims.
Some insurance providers may request permission to conduct a credit check as part of the underwriting process. While these credit checks are considered "soft" inquiries and do not impact your credit score, they allow insurers to assess your risk profile. Maintaining a good credit score can help you secure lower premiums on your home insurance policy.
Avoid Over-insuring your Property
When assessing the value of your home, don’t include the market price of the land it sits on. Insure your home for what it would cost to rebuild your home with similar quality materials in the event of a loss.
Avoid filing small claims
Insurance provides financial protection in the case of a significant loss that you wouldn’t otherwise recover from. Filing small claims can have long-term unintended consequences. If you choose to file small claims, each claim can potentially lead to increased premiums, and you will also lose any claims-free discounts.
Before submitting a claim, carefully consider the financial implications. If the cost of the claim is only slightly higher than your deductible, it may be more financially prudent to handle the expense yourself. By avoiding unnecessary claims, you can maintain lower premiums and potentially save money in the long run.
Shop around for the best insurance rates
Comparing insurance rates from multiple insurance companies can be a good way of finding a lower premium on your home insurance. Premiums can vary significantly from insurer to insurer, depending on where you live, but comparing policies and coverages can be overwhelming.
Working with an insurance broker can simplify the process of finding the best rates. Insurance brokers have access to multiple insurance companies and can help you navigate the complexities of policy options and coverage limits. By leveraging their expertise, you can potentially secure a lower premium without compromising on coverage.
Other Tips to Save on Home Insurance
- Ask your broker about leveraging any potential discounts.
If you’re mortgage-free, over a certain age or have never made a claim, you may be eligible for further discounts.
- Pay your premium annually.
Opting to pay your premium annually instead of monthly can result in savings, as insurance providers often offer discounts for annual payments.
- Consider loyalty discounts.
Some insurance companies reward their long-term clients with loyalty discounts. Factor in this potential saving when considering switching from one company to another.
- Install water damage prevention devices.
Water damage is one of the leading causes of house insurance claims. Consider installing devices such as sewer backwater valves and sump pumps to help prevent damage from flooding.
Saving money on your home insurance in Ontario is possible with careful consideration and informed decision-making. By bundling your policies, choosing the right deductible, and maintaining your home, you can reduce your premiums without compromising on coverage. Additionally, exploring other money-saving opportunities such as shopping around for the best rates and maintaining a good credit score can yield further savings.
When navigating the complexities of home insurance, it makes sense to work with insurance brokers like McLean & Dickey Insurance. We have the knowledge and expertise to guide you through the process, ensuring you find the best insurance coverage at competitive rates. By following the tips in this guide and seeking professional advice, you can secure affordable home insurance that meets your needs and protects your most valuable asset.
Save money on your home insurance today by contacting McLean & Dickey Insurance at 705-325-4461 or fill out a quote request form and one of our knowledgeable brokers will be glad to help.
