Two years ago, back in 2015, those residing in Ontario were paying an average of $780 per year on their home insurance. As a homeowner, you may be asking, is there a surefire way to be on the lowest end of this average?
Home insurance premiums are determined by several factors, some of which you cannot control. But there are some ways to reduce your premiums as significantly as possible. Here are six recommendations to ensure that you are paying as little as possible for home insurance.
A deductible is the amount you are responsible for when you need to make a claim. While a low deductible of $100 or $200 may look desirable initially, raising it to $500 or even $1000 can save you money in the long run. Insurance companies want to absorb the least amount of risk possible, so the higher your deductible, the higher your savings on monthly premiums. By raising your deductible to 1% of your home’s worth, you can save up to 25% on your premiums.
By combining your home and auto (and even life) insurance policies with the same provider, you may receive a substantial discount on both. In addition to the savings received on premiums, you also gain the convenience of having your policies under one metaphorical roof.
By installing a professionally monitored security system, you can save anywhere from 5% to 20% on your home insurance premium, because you not only reduce the likelihood of theft, but also that of water and fire damage. With such a security measure in place, the chance of you filing a claim with your insurance company drops, resulting in a lower premium cost.
Insurance providers have adopted the practice of considering credit scores to help assess the risk of their clients. A credit score is a reflection of a person’s level of financial responsibility. In theory, those with better credit scores will be less likely to put forth a claim. The size of the discount you receive on your premiums may depend on your credit score itself, and different providers calculate the discount differently. If you don’t share you credit score, you are not eligible for any discount.
Insurance companies aren’t going to go out of their way to demand less money. Sometimes, the only way to find out if you qualify for a discount is to ask. Many insurance providers offer premium reductions for loyalty, for instance, but it may not automatically kick in. Each time your policy comes up for renewal, ask to see whether any change you’ve made over the past year qualifies you for a discount. The worst thing that can happen is that they say no.
Just as simple as asking for a discount is looking for one. It’s tempting to auto renew your insurance policy every year, but it only takes a few minutes to get a quote online. With a figure in hand you can either change providers or use your quote to negotiate a better rate with your current company.