Home insurance can be expensive and annual premiums can vary depending on what province you reside in. For many, it is a large part of your home’s overall budget, therefore it makes sense to try and cut this cost down whenever possible.
In this article, we will cover several ways in which you can save money on your home insurance costs.
1. Increase Your Deductible
The deductible is the amount of risk in dollar amount that you are willing to cover yourself in the event you need to make a claim before the insurance company pays any part of the claim. An easy way to lower your home insurance premium is to increase your deductible. Just make sure that you will be comfortable paying the deductible amount that you choose if you ever need to submit a claim in the future.
2. Increase Your Home’s Safety
Home insurance companies prefer when you install or update home security and fire systems to monitor your home. Another monitoring system which may provide a discount or credit on your premium is installing a water sensors system which will monitor your home for leaks and automatically either shut off the water supply to the entire home if a leak has been detected or notify the alarm company.
3. Don’t Get Too Much Coverage
A common mistake homeowners make is to include the price of their land in their home valuation. However, no home insurance provider covers damage to land, especially because land should remain intact no matter what happens to the building structure. When you apply for home insurance, only include the value of replacing the structures on your property and the value of the items inside those structures. Also there is a difference between market value and the replacement value of the property. You always want to insure for the replacement value and not the market value. Market value will include the value of the land and is determined by the local supply and demand of properties for sale.
4. Newer is Better
When it comes to having a new or old home, insurance companies tend to provide a discount for new or updated homes. This is because new and recently updated homes have been brought up to current updated standards and therefore the chance of a claim is reduced.
5. Make Discounts Work for You
If you’re a senior or own your home outright (mortgage free), you most likely qualify for discounts from your insurance company. The next time you are ready to renew your policy, call us at Bow Valley Insurance and we will be glad to discuss all the eligible discounts and there are several of them.
6. Pay Annually, Not Monthly
If you can reasonably afford it, pay your insurance premium for the year rather than each month. Some insurance companies usually charge administrative fees to process your payment each month, so save yourself the money and pay in one lump sum.
7. Compare Rates and Research
When you work with a trusted advisor from Bow Valley Insurance, we will shop and compare rates from number of insurance providers in Canada and find you the best policy and price to meet with your insurance needs. We do the shopping for you!!
8. Home Improvements
Some home improvements such as installing a sump pump or backwater valve can reduce your chances of making a water damage claim and in turn will reduce your home insurance premium plus will enjoy the no claim discount for years to come.
9. Avoid Making Small Claims
Numerous claims in the span of several years may cause your premiums to increase. If something gets damaged in your home, consider if it’s really worth making the claim. Before making any claim consider all the facts especially the future premiums.
10. Combine Home and Auto Insurance & Save
Having your home and auto policies both with Bow Valley Insurance may provide additional discounts to both the home and auto policies. This is called a multi-line or multi-coverage discount. These discounts are given on both policies when placed with the same insurer. The more policies you place the higher the potential to save with multiple discounts. Be sure to ask us at Bow Valley Insurance how you can save by combining all your policies and take advantage of the savings.
To learn more about how you can save money on your home insurance premium, contact an experienced member of the Bow Valley Insurance team today for a free, no obligation quote.