8 Easy Ways to Save on Home Insurance

By RateHub.ca

Home insurance is a must for any homeowner. Not only do lenders require it, it only makes sense to protect what is likely the biggest investment you will ever make. And while nobody enjoys paying for insurance, here are some easy ways to save on your insurance premiums.
1. Browse the market
It pays to shop around. One of the key factors in determining your premiums is your home's replacement cost. Each insurance provider determines it's own replacement cost. As long as the policy doesn't place a limit, it can pay to go with the lowest replacement cost. It also doesn't hurt to get a few quotes from insurance companies and brokers, as premiums can vary by a lot.

2. Raise your deductible
Raising your deductible is a great way to lower your premiums. If your deductible is $500, why not raise it to $1,000 or $2,000? $500 most likely won't put a dent in your cheque book, should you ever need to pay a deductible, and increasing it can save you thousands of dollars long-term.

3. Bundle up
Similar to bundling your cable and internet services, you can save a few hundred dollars each year by having your home and auto insurance with one insurance provider.

4. Protect your home
Installing a home security system can result in lower premiums, although it may not be worth it if the alarm monitoring fees are more costly than the savings. Similar to life insurance, being a non-smoker and installing smoke alarms are other easy ways to lower your premiums.

5. Modernize your utilities
Insurance providers like modern heating and electrical wiring. If you have newly-upgraded heating and wiring, it could results in lower premiums. Be wary of purchasing a home with oil heating or knob and tube wiring – this will most likely result in higher premiums, if an insurer will cover you at all.

6. Pay annually
Ask your insurance provider if you can get a discount by paying your premiums annually. Although it's usually easier to budget for monthly costs, some insurance companies charge an extra per cent when you want to pay monthly.

7. Review your coverage
You may not need the top-of-the-line platinum insurance if you live in a modest home in suburbia. Ask your insurance provider what is covered under the policy – there's no point in paying for coverage you most likely won't need.

8. Other discounts
Have you paid off your mortgage? Ask for a discount. Is your home less than a decade old? Ask for a discount. Does your university alumni program offer a discount? It doesn't hurt to ask for a discount. Being a retiree and living at your residence for a certain number of years can also result in discounts.