Home insurance is one of the most important types of coverage you can have, but people rarely think about it once they have it. Instead, they let it renew automatically. But, in a context where home insurance costs in Canada are expected to rise by 5% by the end of 2022, it is well worth looking at. You can save a lot on your home insurance policy with a few simple tips.
1. Compare your policy premiums and coverage
All home insurance policies are different, so compare coverage and amounts, as well as premiums. It’s essential to find coverage that best fits your situation and needs. Also, check if you’ll incur a fee for changing policy options before renewal. Some insurers charge one. As your situation changes, you may need more, less, or different coverage.
Shopping for home insurance can be tedious. HelloSafe helps you to compare all of the Ontario home insurance options in a few seconds.
2. Review your insurance every year and remove unnecessary options
It is important to stay informed of other opportunities on the market. Home insurance policies and offers are always evolving. The policy that you chose two years ago may not be the best home insurance for you today, or the least expensive one. As your situation changes some options may no longer be worthwhile. Check for coverage options that are automatically included in your home insurance policy that you don’t necessarily need, such as coverage for a garage or accidental damage cover.
3. Avoid minor claims
It isn’t always a good idea to report minor incidents like a broken window to your home insurance provider. Here’s why:
- Previous claims drive up future premiums. Replacing something small yourself may be cheaper in the long run.
- Some insurance providers offer a discount on your premiums if you go claim-free for a specific length of time.
- When you ask for a quote from a new home insurance provider, you will be asked if you have reported any claims in the past. Recent claims may mean higher quotes later.
In the end, paying for minor repairs now may mean paying less when you factor in a higher premium later.
Want to save a little more? Here are two more tips to try. First, ask if there is a discount for paying your insurance annually rather than monthly. And don’t forget to secure your property and stay on top of maintenance. While that may seem obvious, doing so reduces the claims you report and help keep your premiums low.
The three most important tips are to compare, stay informed of current offers, and avoid small claims. Do all three and you’re sure to save big on your home insurance.