“Recently we talked about the trend in rising auto insurance rates, and shared tips for how drivers can save on their insurance costs.
Even though insurance companies want to keep prices manageable for all, there are sometimes factors out of their control that can impact customers’ household costs.
Fortunately, as with auto insurance, there are ways you can make your home insurance costs more affordable. Let’s first understand why rates are trending upward.
Deconstructing home insurance rates
The climate is changing. Damage from increasingly severe weather – wildfires, floods, hail storms, tornadoes – is causing more Canadians to have to rely on insurance than ever before in recent history. Meanwhile, repair and replacement costs are also rising.
An insurance company’s main job is to be there when they’re needed most; by paying out claims when customers experience losses. The reality is that, with the rising number of claims, insurers often need to reassess insurance prices to help offset increased costs.
We can’t change what’s happening, by we can help you save
There are things you can do to help lower your home insurance costs – perhaps some you’ve never considered before.
When you receive your annual home insurance renewal, we encourage you to meet with your insurance broker to determine whether any of the following tips can help you save money on your coverage:
- Consent to a credit check. If you have a good credit score, you may be eligible for a reduction on your premium costs.
- Ask about product bundling. For example, you could be eligible for additional savings if you purchase both home and auto coverage through Wawanesa.
- Report updates to your home, such as a new roof or upgrades to home materials.
- Reassess the value of your belongings to ensure you have the appropriate amount of coverage.
- Provide the age and type of your hot water tank. For example, do you have a storage tank or are you tankless?
- Adopt a water leak detection system so you’re notified immediately when water enters your home.
- Install a burglar and fire alarm.
- Provide the date you moved into your home.
- Increase your deductible. If you can manage a higher deductible, you will lower the cost of your annual premium.
- Reduce your claim history by not filing claims for lower-cost fixes and replacements.
- Review your coverage options. Your broker can walk you through insurance coverage types and help you determine which makes most sense for your needs and your budget.
Sproule Insurance is available to help answer your questions and to assist you with managing your insurance needs.