Just by making a few tweaks, your home insurance costs can differ by hundreds of dollars.
There are many variables that go into determining the costs of your home insurance and by being informed about what impacts these calculations you can make a more knowledgeable decision when purchasing your policy. An insurance broker is one of your best resources when it comes to shopping around and comparing policies, so be sure to enlist the help of yours for when you need help purchasing coverage. Also, a broker will be able to review your situation and determine whether or not you might require special protection for certain aspects of your home.
Below we have detailed a few ways you should consider when buying your insurance in order to keep your costs as low and as reasonable as possible.
Be informed about your area
You might not need to worry about earthquake coverage in much of eastern Canada but you will certainly need to think about how your house is going to hold up once the temperature starts dropping. By being informed about the weather events your area is likely to experience, you can adjust and update accordingly in order to reduce your risk and lower the cost of your home insurance premiums.
For instance, if you were looking to purchase home insurance in Calgary, you may want to educate yourself on what natural disasters or extreme weather events your local area may have in store for you. In this example, Calgary often experiences harsh cold snaps in the autumn months and locals may be required to invest in stronger or more durable roofing materials in order to protect their properties against wind and cold damage. Not only does making your home more disaster resistant spare you from possibly ever having to make a claim in the first place, but you can also save on your premiums when you add these weather-hardy features to your home. Reinforced roofs, storm shutters and home security systems are all upgrades that you can make to your building that may result in your home insurance premiums being lowered.
Finally, if you live in an older home, you may want to consider upgrading or modernizing your electric, heating and plumbing systems to reduce your exposure to potential water and fire damage.
Raise your deductible amount
First of all – what is a deductible? A deductible is a set amount of money that you will be required to pay towards a loss before your insurance company can step in and cover the remainder. If your deductible is relatively low, you will have to pay less in the event of a claim and your insurance provider more – but your premiums will be higher as a result. If you want to lower your insurance premiums you can do so by lowering your deductible. Be mindful of the fact that certain disasters or events might actually be subject to a separate deductible if your area is prone to experiencing these. Insurance providers will recommend a certain minimum deductible so be sure that the amount you set is reasonable. You would not want to be in the hole for repairs and replacements costlier than you can afford should anything happen.
Bundle your auto and home insurance
Many insurance providers will actually offer discounts for clients who purchase two or more insurance policies from them. Not only will this shave off some costs, but it also makes things a lot simpler for you since you will only be needing to deal with one insurance company.
Consider rebuild costs before market value
Your home is not valued at the same price as what it cost to buy. Furthermore, the land beneath your property is not exactly vulnerable to windstorm, theft, vandalism, fire, and other perils that will be listed in your homeowner’s insurance policy, so you shouldn’t be considering its value when you purchase your home insurance. If you do, you find yourself having to pay a far higher premium than what you should.
Preserving a good credit history
By maintaining a solid credit record, you can lower your home insurance costs as many providers will actually use credit information to calculate your overall premiums price. Be sure to pay your bills on time and do not assume more credit than you need in order to preserve a solid credit history. Also, be mindful of checking your record on a fairly routine basis so that you can have any errors mitigated as soon as possible.
Stay insured with the same provider
Unless absolutely necessary, you should try to stay with the same insurance company as some providers will offer discounts for long-term clients. Discounts can range anywhere from 5 to 10 percent, depending on the number of years you have been with your provider. Of course, you can always occasionally compare the price of your home insurance to that of other policies in order to be certain you are getting the right amount of coverage for the right costs.
Your home insurance costs can vary by any number of dollars depending on the provider from whom you purchased your policy and a variety of other variables. You will want to shop around for a policy with the best bang for your buck but be sure not to settle for the lowest number possible. You still want to be sure you have enough coverage in case anything should happen! Enlist the help of a home insurance broker for when it comes time to purchase a new policy as they can help you compare prices, coverage, and more. Also, be mindful of any extra features of your home that you may need special coverage for – such as if you run a home-based business. Depending on the size of your commercial operation, you may need a separate policy in order to be completely covered. Always be honest with your insurance provider so as to ensure that you’re getting everything you need. It’s better to be safe than to be sorry!