Buying a new home is an exciting adventure, as well as an expensive endeavour. So let’s look at tips that will help you save on the home insurance you’ll need in order to protect your new purchase.
Ask about discounts when getting home insurance
Just like auto insurance, you may be eligible for discounts that will help you get lower home insurance premiums. Common discounts include the:
Multi-line discount: Most companies offer this discount as an incentive to get your auto insurance business too.
New home discount: Some insurance companies will offer a discount if your home is less than 10-years old.
Alarm discount: You could be eligible if your home is monitored by a centrally monitored approved security system.
Claims-free discount: Offered if you have you not had a home insurance claim in the last five years.
Mortgage-free discount: Available if you have paid off your mortgage and now own your home outright.
Age discount: A discount on your insurance as you pass certain age milestones. If available, the qualifying age differs from insurer to insurer.
While the availability of discounts will vary, asking about them could save you a significant amount of money.
Increase your home insurance deductibles
The higher your deductibles, the lower your insurance premium, so raise them as much as you can. Keep it affordable though, because this is how much you’ll have to cover should you need to submit a claim.
If you’re buying a home, chances are someone will suggest you buy life insurance—usually mortgage life insurance or term life insurance. Doesn’t really matter which, because life insurance is life insurance, right? No way. Since you buy mortgage life insurance directly from your mortgage lender, it's convenient, but you’re certainly paying a premium for that convenience.
Take a look at these comparisons for $250,000 in coverage:
Insurance premiums across insurance companies ARE NOT the same, and the quote you get from one company will not be the same as one you would get from another. Each insurer’s rates are unique to them and chances are no two are alike. Only by shopping around for your home insurance will you know who offers you the best rate.
Compare apples-to-apples while shopping
When getting insurance quotes, make sure you’re comparing like-products. For example, with home insurance include the same deductibles, coverages and limitations when getting your quotes. As for life insurance, you’ll want to know if you’re being quoted standard or preferred rates. Standard rates are the rates the majority of Canadians qualify for, while only about one third of the population is eligible for preferred rates. At comparisons sites like Kanetix.ca, you’ll easily be able to compare apples-to-apples, and you’ll know exactly what rates you’re being quoted.
Shop around
Get insurance quotes instantly online. Through Kanetix.ca's online quote comparison service you can get quotes from competing insurers for both your home insurance and life insurance.
*Based on the information available in May 2009 from the website of a major Canadian bank.
**Best rates available for joint coverage (male and female non-smokers) in May 2009, using the Kanetix.ca’s insurance shopping tool. Original rates shown in annual premiums. For comparison purposes, the annual rates are shown as their monthly equivalent.
Our articles and content cannot be reproduced or republished in any form whatsoever without prior written consent from Kanetix Ltd. Publication of our content is encouraged through our free: Content Publisher Programs. You are free to use our RSS feeds as long as the included links to our site remain active and the content is unaltered in any way. Click here to select the RSS feed(s) you wish to use.
Insurance Quotes
More
Print
