Your dwelling is often your most precious asset that
you need to protect. We created a list of all savings opportunities associated
with Home insurance. This list is the most complete perspective on home
insurance savings tips. Numerous insurance brokers contributed to this list.
So, let's start!
1. Change your content coverage: Renting a Condo? You
can often lower your content coverage. No need to insure your belongings to up
to $250,000 if you only have a laptop and some IKEA furniture!
2. Renovations: Renovating your house can result in
lower home insurance premiums, as home insurance premiums for older, poorly
maintained dwellings are usually higher. Additionally, renovating only parts of
your dwelling (e.g. the roof) can lead to insurance savings.
3. Pool: Adding a swimming pool to your house will
likely lead to an increase in your insurance rates since your liability (e.g.
the risk of someone drowning) and the value of your house have increased.
4. Pipes: Insurers prefer copper or plastic plumbing
- maybe it is a good idea to upgrade your galvanized / lead pipes during your
next renovation cycle.
5. Shop around: Search, Compare, and switch insurance
companies. There are many insurance providers and their price offerings for the
same policies can be very different, therefore use multiple online tools and
talk to several brokers since each will cover a limited number of insurance
companies.
6. Wiring: Some wiring types are more expensive or
cheaper than others to insure. Make sure you have approved wiring types, and by
all means avoid aluminum wirings which can be really expensive to insure. Not
all insurers will cover houses with aluminum wirings, and those that would,
will require a full electrical inspection of the house.
7. Home Insurance deductibles: Like auto insurance,
you can also choose higher home insurance deductibles to reduce your insurance
premiums.
8. Bundle: Do you need Home and Auto Insurance? Most
companies will offer you a discount if you bundle them together.
9. New Home: Check if insurer has a new home
discount, some insurers will have them.
10. Claims-free discount: Some companies recognize
the fact that you have not submitted any claims and reward it with a claim-free
discount.
11. Mortgage-free home: When you complete paying down
your house in full, some insurers will reward you with lower premiums.
12. Professional Membership: Are you a member of a
professional organization (e.g. Certified Management Accountants of Canada or
The Air Canada Pilots Association)? Then some insurance companies offer you a
discount.
13. Seniors: Many companies offer special pricing to
seniors.
14. Annual vs. monthly payments: In comparison to
monthly payments, annual payments save insurers administrative costs (e.g.
sending bills) and therefore they reward you lower premiums.
15. Annual review: Review your policies and coverage
every year, since new discounts could apply to your new life situation if it
has changed.
16. Alumni: Graduates from certain Canadian
universities (e.g. University of Toronto, McGill University) might be eligible
for a discount at certain Insurance providers.
17. Employee / Union members: Some companies offer
discounts to union members ( e.g. IBM Canada or Research in Motion)
18. Mortgage insurance: Getting mortgage insurance
when you have enough coverage in Life insurance is not always necessary:
mortgage insurance is another name for a Life/Critical Illness / Disability
insurance associated with your home only but you pay extra for a convenience of
getting insurance directly when lending the money. For example a Term Life
policy large enough to pay off your home is usually cheaper.
19. Drop earthquake protection: In many regions,
earthquakes are not likely - you could decide not to take earthquake coverage
which could lower your premiums. For example, in BC earthquake coverage can
account for as much as one-third of a policy's premium.
20. Wood stove: Choosing to use a wood stove means
higher premiums - Insurance companies often decide to inspect the houses with
such installations before insuring them. A decision to get rid of it means a
lower risk and thus lower insurance premiums.
21. Heating: Insurers like forced-air gas furnaces or
electric heat installations. If you have an oil-heated home, you might be
paying more than your peers who have alternative heating sources.
22. Bicycle: You are buying a new bicycle and
thinking about getting extra protection in case it is stolen when you leave it
on the street e.g. when doing your groceries? Your Home insurance might be
covering it already.
23. Stop smoking: Some insurers increase their
premiums for the homes with smokers as there is an increased risk of fire.
24. Clean claim history: Keep a clean claim record
without placing small claims, sometimes it makes sense to simply repair a small
damage rather than claim it: you should consider both aspects: your deductibles
and potential raise in premiums.
25. Rebuilding vs. market costs: Consider your
rebuilding costs when choosing an insurance coverage, not the market price of
your house (market price can be significantly higher than real rebuilding
costs).
26. Welcome discount: Some insurers offer a so called
welcome discount.
27. Avoid living in dangerous locations: Nature
effects some locations more than others: avoid flood-, or earthquake-endangered
areas when choosing a house.
28. Neighborhood: Moving to a more secure
neighborhood with lower criminal rate will often considered in your insurance
premiums.
29. Centrally-connected alarm: Installing an alarm
connected to a central monitoring system will be recognized by some insurers in
premiums.
30. Monitoring: Having your residence / apartment /
condo monitored 24 hour can mean an insurance discount. E.g. Via a security guard.
31. Hydrants and fire-station: Proximity to a water
hydrant and/or fire-station can decrease your premiums as well.
32. Loyalty: Staying with one insurer longer can
sometimes result in a long-term policy holder discount.
33. Water damages: Avoid buying a house which may
have water damage or has a history of water damage; a check with the insurance
company can help to find it out before you buy the house.
34. Decrease liability risk: Use meaningful ways to
reduce your liability risk (e.g. fencing off a pool) and it can result in your
liability insurance premiums going down.
35. Direct insurers: Have you always dealt with
insurance brokers / agents? Getting a policy from a direct insurer (i.e.
insurers working via call-center or online) often can be cheaper (but not
always) since they do not pay an agent/broker commission for each policy sold.
36. Plumbing insulation: Insulating your pipes will
prevent them from freezing in winter and reduce or even avoid insurance claims.
37. Dependent students: Dependent students living in
their own apartment can be covered by their parents' home insurance policy at
no additional charge.
38. Retirees: Those who are retired can often get an
additional discount - since they spend more time at home than somebody who
works during the day and thus can prevent accidents like a fire much easier.
39. Leverage inflation: Many insurers increase your
dwelling limit every year by considering the inflation of the house rebuilding
costs. Make sure this adjustment is in line with reality and that you are not
overpaying.
40. Credit score: Most companies use your credit
score when calculating home
insurance premiums. Having a good credit score can help you to
get lower insurance rates.
41. Stability of residence: Some insurers may offer a
stability of residence discount if you have lived at the same dwelling for a
certain number of years.
Source: http://ezinearticles.com/?40+-Home-Insurance-Savings-Tips&id=7422262
