7 Ways to Lower Your Home Insurance

Home insurance costs are not “one-size-fits-all”. The price you pay for a homeowners insurance policy can vary significantly depending on specific aspects of your policy and home.

Additionally, home insurance rates are not set in stone.

This means that, if you are looking to save money, you don’t have to take the dangerous risk of foregoing home insurance. There are ways to cut down the costs will still being protected.

You can have peace of mind, and save your hard-earned money, by taking advantage of discounts offered by your insurance company as well as making changes to your policy.

Are you curious to find out how?

Here are some invaluable tips for lowering your homeowners insurance policy:

Tips to Lower Your Homeowners Insurance Policy

1. Contact An Insurance Broker

Before you go shopping around for dwelling coverage for your home, consider speaking to an insurance broker. An insurance broker is trained and available to find you the best homeowners policy at the best rate to give you peace of mind. An example would be if you’re located in the GTA (Greater Toronto Area).

The best part is that their services are completely free! They earn a commission from the insurance companies so there are no fees to pay.

However, don’t worry about being pushed into paying high homeowners insurance rates or convinced to by cheap insurance so they can make a sale.

Insurance brokers are licensed and are required to act in the best interest of their clients, not the insurance companies.

2. Consider Where You’re Buying a Home

Where you buy your home can impact your homeowners insurances rates. For instance, you could end up paying less for insurance if your home is close to a fire hydrant.

Likewise, you could face higher rates if you are in an earthquake or flood-prone area. In the case of living in a flood-prone area, you will probably have to purchase additional flood insurance to cover for any resulting water damage.

Structural aspects of the house are taken into consideration as well. The of cost of homeowners insurance is typically lower when the home’s heating, plumbing, and electrical systems are less than 10 years old.

3. Raise Your Deductible

A deductible is the amount of money you have to pay during the claims process before your insurance company pays on the claim. The amount of your deductible can vary and depends on the terms of your policy.

The higher your deductible, the amount you pay out on a claim, the more you can save on your insurance policy. Most companies recommend a deductible of at least $500 but you can raise it to $1,000 if you choose.

Remember that, if you live in disaster-prone areas, your insurance policy may have a separate deductible for specific types of damage. 

 Overall, make sure you are able to afford the deductible should you have to make a claim.

4. Combine Your Home and Auto Insurance

Some insurance companies that sell homeowners insurance also offer auto insurance. It could be possible to bundle your home insurance policy with your auto insurance policy to save money off your premium.

Be sure to check to see if this combined price is actually lower than buying the different insurance coverage from different companies. An insurance broker will be able to show you the comparisons so you can make a more informed decision.

5. Renovate Your Home

Speak to your insurance broker to see if there are any homeowners insurance discounts you can receive for making changes to your home. For instance, you may be able to reduce your insurance cost by installing a sewer backup valve, reinforcing your roof, or upgrading your home’s sump pump.

Older homes can also be upgraded with new wiring and plumbing to reduce the cost of your homeowners insurance coverage.

Added Bonus: You may even increase the value of your home as well!

6. Improve Your Home Security

Adding security-related components to your home, such as smoke detectors, burglar alarms, or dead-bolt locks, could also lower your homeowners insurance rates.

Some security systems that can save you money on your insurance, such as fire/burglar alarms that directly contacts a monitoring station, could save you anywhere between 15%-20% on your policy rate.

However, make sure you speak to an insurance broker before having an expensive system installed to ensure that it qualifies for a homeowners insurance discount.

7. Review Your Insurance Policy Every Year

It’s important that your insurance covers any major purchases or additions to your home – but you also don’t want to pay for coverage if you don’t need it.

Once a year, you should get in touch with your insurance broker to discuss any changes with and within your home. For example, if you sell an expensive piece of equipment, you may not need to pay as much for personal property insurance.

Likewise, if you renovate and improve your home, you’ll want to make sure you receive any discounts you qualify for.