5 Things You Can Do to Save On Home Insurance

Spring cleaning is upon us. During the day you can sweep away the thoughts and debris of winter’s past and enjoy the warm sun. At night, when the air cools, you can head inside, to relax on the couch with a warm computer on your lap and clean up your finances – hopefully discovering ways to save yourself money.

While there are many ways to save, this article aims to educate you on how you can save on home insurance. Here are five simple things you can do to save on home insurance.

Bundle Up

If you’re not doing it already, combining your home insurance policy with your auto insurance policy can save you up to 15%. This one is as easy as calling both your current auto and home insurance provider. Ask them about adding either a home policy or auto policy to your existing policy, and discover which one ends up being less.

A quick word of caution: make sure you’re comparing apples to apples – if you have additional endorsements on your car insurance like collision and comprehensive, or on your home insurance like overland water or identity theft, make sure they’re added to the updated quotes. As well, remember that cancelling a policy early comes with a fee, so the best time to execute the insurer switch is during a renewal period, but this shouldn’t stop you from comparing the best bundle price today!

Increase your Deductible

The deductible is the portion you pay before your insurance company pays their share. If you have a $500 deductible and you’re willing to at least double up the deductible to $1,000 an insurer will reward you with a premium discount. It’s a sign of good faith from the insurer as they’re acknowledging that you’re taking on more of the financial burden of the claims process. Also you won’t be making any claims for less than $1,000 which reduces the number of potential claims you might submit. The fewer claims you submit, the better price you’ll pay.

For a real-world example, let’s say a kid accidentally throws a baseball through your window, and it costs $600 to fix it. You won’t submit a claim in this case because you’d have to pay $1,000 to repair $600 worth of damage.

Pay your Premiums Annually

Whether it’s condo insurance or home insurance, if you can afford to pay all of your premiums at once, do it, since it can save you money. Think about it, if an insurer can get all their money up front and not worry about late payments, or chasing down customers for money, they’ll reward you for the worry-free experience.

Agree to a Credit Check

While it may seem intrusive and unnecessary, insurers insist that good credit has a direct correlation to people who file fewer claims. Since it’s not a requirement, you can choose to opt-out of a credit check without a negative effect on the rate you receive. However, if you do allow for a credit check, it could potentially save you up to 25% on your home insurance. The better your credit rating, the more you could save.

Shop Around

Shopping for home insurance quotes has never been easier. At Ratehub.ca we developed a home insurance quoting engine that takes just a few minutes to get either homeowner, condo, or renters insurance quotes from some of Canada’s top providers. You don’t have to get on the phone or drive around repeating the same information to each potential insurer individually. Our quoter also includes tips for every question that’s asked to help you understand why it’s being asked and how it might affect your insurance premium.

While there may be more intensive things you can do like upgrading your electrical, plumbing, roof, or even installing a centrally monitored alarm system, these five discount opportunities are easy to take advantage of with just a quick call to your insurance agent. In fact, while you’re on the phone with them ask them about all their available discounts – not every company openly advertises these discounts. There may be an alumni, professional organization or even a union discount. Sometimes even just being a senior can save you money. So simply ask what discounts they offer, and see if you qualify for any.

Now that you’ve saved all this money, maybe you can spring for that new BBQ this summer. All part of spring cleaning, right?

About Ratehub.ca

RateHub.ca is a website that compares mortgage rates, credit cards and deposit rates with the goal to empower Canadians to search smarter and save money.