In this section, we'll look at ways you can reduce your home insurance premiums.
Review your policy coverage and limits
Compare your insurance coverage with the value of your personal property. Have you made any significant purchases in the previous year? Have you "down-sized" ? Has the value of your property decreased? These are reasons to increase or decrease your insurance coverage. Some insurers automatically increase your policy limit each year to reflect inflation changes. Check to see if this is the case with your policy.
Keep an inventory
This doesn't have to be detailed or painful to do. Take a video or record digital images of your apartment or condominium - open drawers and closets and record all your personal possessions. Store the video or digital images away from your property. If you have a claim, you'll have proof of your possessions for your insurance company, and no difficulty replacing your property. Taking inventory is also a great way to help you estimate the value of your property.
Shop around
All insurance policies are not created equal. Review your property insurance policy on an annual basis, and get at least 2 alternative quotes to compare with your current policy.
And make sure that you compare apples with apples. Check each quote for its special limits of coverage. For example, most insurance companies limit coverage for theft of jewellery. If you know what the limits are, you can decide if you need additional coverage.
Make sure your quote includes coverage for Replacement Value.
Increase your deductible
How much money can you afford to spend -- suddenly and unexpectedly? Based on this amount, decide on your maximum deductible. A higher deductible will reduce your insurance premiums. If you have a claim, be prepared to pay your deductible.
Consider buying property and automobile coverage from the same company
Your insurance company may offer a discount on one or both of your policies. Say your automobile is broken into and your golf equipment is stolen. You'd normally pay two deductibles - one for your property and one for your automobile. If you have both policies with the same company, your insurance company may waive one of the deductibles.
Improve security
You can reduce your insurance rates by making your property more secure. Think about installing a smoke detector, carbon monoxide detector, burglar alarm, or dead-bolt locks. If you install a fire and burglar alarm that rings the police station or other monitoring facility, your insurer will offer a discount. Before you spend too much on security measures, check with your insurance company to see what their qualifications are to receive a discount.
Be a non-smoker
Every year, smoking causes a large number of residential fires. Find out if your some insurance company will reduce premiums for a non-smoker.
Property and home insurance quickguides
- Introduction to property insurance in Canada
- Standard home coverages
- Standard condo coverages
- Standard tenant or renters coverage
- Beyond basic coverage
- How insurance is calculated
- How to reduce your insurance premium
- Taking advantage of insurance discounts
- Special situations