As a licensed broker, quite often during conversation when I’m out with friends or family, I will be asked “So how can I save money on my home insurance?” Of course, my response to this is “You should switch to me and find out!”
All joking aside, there are many ways to help save money on home insurance without leaving yourself exposed financially by cutting corners so I thought I would share them with you.
1.) Probably one of the easiest ways to lower your insurance premiums is through increasing your deductible. A lot of individuals I come into contact with think that by having a lower deductible they will be sacrificing money when it comes to claiming. However in most cases, it doesn’t make sense to claim for small losses on your home insurance anyways. This will result in increasing your home insurance and in the long term, won’t make sense financially. Many of my clients will increase their deductible to $1000 simply because they require home insurance to cover them for larger losses such as Fire, Storm Damage or Theft etc. That’s not to say that everyone choses a higher deductible, however if you want to save some money, this is a great way to do so.
2.) Another great way to save on insurance is to stay where you are. Numerous insurance companies in Saskatchewan will offer you a loyalty discount if you stay with them. So whilst it may seem a good idea to move around each year to save a few bucks, you may be better off sticking with who you are with now.
3.) When purchasing a new home, it’s always a good idea to do your research when it comes costs. Homes that are older ( usually pre 1960’s) are seen as higher risks to insure. Why is this? Well, when we consider the cost of materials to rebuild these older homes no longer exist and that the bylaws may have changed significantly, you can start to see the risks associated with older homes are greater than that of newer properties. Combine this with the possibilities of key elements such as electrical, plumbing and heating being outdated (meaning the chances of a claim being submitted are higher than those in a new build) Newer Homes are seen as a lower risk due to the new materials and up-to-date systems resulting in savings of up to 15%.
4.) Another common mistake is people insure the value of their property including the land its build upon. Well, no one is going to steal your land and fire or storm damage won’t destroy it. Plus, Home Insurance doesn’t cover land anyway, so don’t include this when deciding how much protection you need. Let experienced, licensed, professionals use their expensive software programs to determine the cost of rebuilding your home and then discuss your options. If you are including the value of the land, chances are, you are overpaying
5.) Some Home Insurance policies will include an automatic protection limit for your contents and personal property. This amount can be lowered to save money, but be careful. You don’t want to under insure and leave yourself open potentially to financial risks. Equally, this can go the other way as you may feel you need a higher limit on your contents however again, it’s best to open up the conversation with your broker to determine what options you have.
6.) In recent years, it’s now considered “cool” if you don’t smoke. Not only is this good for your health, but in many cases, it’s also good for your home insurance. Fires started by cigarettes cause 1 in 5 fire fatalities and insurance companies will often discount if all residents in the home are non smokers.
7.) Where you live also is a major factor when determining rates for your home insurance. If you are more than 13km away from the nearest fire hall, then your home is considered “unprotected” from the risk of fire and your home insurance will be significantly higher than those who are situated less than 300 meters from a water hydrant with a fire hall close by. Also, if you are in an area that has high crime and flooding, this will also be a key factor on your home insurance premiums
8.) Insurance companies will often discount up to 15% for a professionally installed alarm system that’s monitored 24hrs a day via a security company. Whilst this is a great way to mitigate against property from being stolen as it will notify the authorities early of any break ins, quite often there is a monthly cost to the security company. Evaluate what’s more important to you. Saving money, or catching criminals early from stealing more property.
Remember, it’s always best to seek the advice of a licensed professional before making key decisions on your home insurance and if you are interested in a free consultation to see if we can save you some money, contact myself anytime on 306 384 2242
or email me direct at firstname.lastname@example.org.