Ways to save on your home insurance

Everybody loves a discount. That’s why we’re going to review things that may help you save on home insurance premiums. Some are simpler and you just have to ask your broker if you qualify. (Don’t be afraid to ask them if there are any other discounts available. That’s what they’re there for!) Others are home improvements that require investment. But once they’re done, many of them can lower your premiums.

Common insurance discounts

1. Bundle home/auto insurance –This is one of the easiest ways to save. Most insurers offer a discount when they provide and service both policies. And if you own more than one property – such as a cottage or a rental – stick with the same insurer to get the best deal.
2. Pay premiums annually –By paying up front for the full year, you avoid administrative costs that are applied when paying monthly.
3. Don’t file small claims –Many insurers offer a claims-free discount. When you’re considering a claim, think about the deductible you would pay and whether it’s worth filing one for a cost you could cover yourself. The claims-free discount will help you save on premiums.
4. Increase your deductible - In most cases, the higher a policy’s deductible, the lower the premium. But it means you will have to pay more up front when making a claim. Make sure you can afford to pay the added deductible in the event of a loss.
5. Mature homeowner – Are you 55 or older? That will likely qualify you for a discount.
6. Alumni/professional group – If you are a graduate of a college, university, or member of a professional group, you could qualify for a group rate discount.
7. Be a non-smoker –Not only is it not healthy, but it’s also a risk to your property too. It only takes one smoldering cigarette to start a devastating fire.
8. Buy a new home/condo –If you purchase a home that 10 years old or less, you may be eligible for a discount because newer buildings are less likely to have problems.
9. Become mortgage free –Some insurers may offer a discount if you no longer owe the bank money.
10. Have a good credit rating –Your insurer will likely look favourably on a good credit rating and consider you less of a risk.
11. Pick a lower risk neighbourhood –Some areas have higher crime rates than others. When you’re looking to buy, find out what your insurance would be before you buy. It may be worth it.
12. Loyalty discount –Been with the same insurer for a long time? Many offer for a reduction for keeping your business.
13. Shop around –The insurance industry is competitive. Have your broker compare rates every few years at renewal time to make sure you’re getting the best deal.
14.  Don’t over insure –While this isn’t a discount, discuss coverage levels with your broker. If you’re paying for coverage you don’t need (for example, a higher amount for jewelry or art), your premiums could go down.

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Home upgrades that may reduce premiums

When you renovate or update your home, always inform your insurer. Depending on what you’ve undertaken, they need to know about the work, and it could mean lower rates!

1. Install a monitored security system – When you’ve taken this additional step to protect your home, it means insurers will see you as being less of a risk for theft. That’s because your security system acts as a strong deterrent to criminals.
2. Replace old wiring – Many older homes have outdated electrical systems. In fact, if your home is over 30 years old some insurers would require wiring to be updated or inspections. After the work is done by a licensed electrician, be sure to provide a certificate of completion to your insurer.
3. Upgrade plumbing – Older pipes, such as those made of lead or galvanized steel, can rupture, rust or leak over time. From an insurance standpoint, water damage is a significant risk. Some insurers may even require older pipes be replaced with copper or plastic ones.
4. Install a back-flow valve or sump pump – These are key to preventing water damage in your home. A back-flow valve prevents sewer water from entering your home when municipal sewer lines are overfilled. A sump pump can prevent water damage in your basement. These mitigate the risk of water problems. Some municipalities offer homeowners subsidy programs to make this improvement.
5. Update your roof- Over time roofs will degrade, making liabilities (such as water damage) a much bigger issue. Inspect your roof once a year for damage. If you’re missing shingles or they are curling, it’s likely time for repairs or replacement. Remember that your insurer also requires you to maintain your home.
6. Replace the water tank - If your hot water tank is 15 years old or older, you may want to replace it because the likelihood of leaks and bursts increases over time.
7. Upgrade the furnace- Certain types of heating, such as oil, have more risk attached which means there’s a higher chance of a claim. Those categorized as riskier typically have a higher premium. While you won’t get a discount for replacing an old furnace you will save on heating bills and that’s a good thing.
8. Embrace smart technology – A great way to modernize your home, these devices can help keep you informed of problems such as water leaks in real time and could minimize damage.

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