Buying a house 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 Home Insurance Discounts
Just like auto insurance, you may be eligible for discounts that will help you get lower home insurance premiums. Common home insurance discounts include:
- 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 for this discount if your home has a monitored security or fire alarm system.
- Claims-free discount: Many insurers offer a discount, if you've never submitted a claim (or haven't in years).
- Mortgage-free discount: If your mortgage is paid off, some insurers will offer a discount recognizing this achievement.
- Age discount: Most insurers offer mature clients a discount as certain age milestones are reached. If available, the qualifying age differs from insurer to insurer.
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.
Explore Your Life Insurance Options
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.
Mortgage life insurance is typically offered by your mortgage lender. It is a life insurance policy that pays the balance of your mortgage to the lending institution if a person listed on the mortgage passes away. Term life insurance on the other hand, goes to your family—not the lender—and typically includes enough coverage to take care of the mortgage as well as all your family's other needs.
Let's say though, you're only interested in life insurance to cover the cost of your $250,000 mortgage. For many couples there's better value to buy a term life policy:
|For a couple aged||Annual Mortgage Insurance Premium Sample 1||Annual Mortgage Insurance Premium Sample 2||Annual Term 10 Life Premium|
Mortgage insurance premiums based on the information available in July 2014 from the websites of two major Canadian banks. For comparison purposes, we converted the monthly rate into the annual equivalent. Term life insurance premiums based on the lowest rates available for joint coverage (male and female non-smokers) in July 2014 using the KANETIX.ca life insurance comparison tool.
Pay Your Home Insurance Premium All At Once, Rather Than In Monthly Installments
Many companies charge a little extra to cover the cost of administering payments every month, so if you can afford to pay your home insurance premium annually, rather than monthly, at the end of the day you'll pay less for your coverage.
Quit Smoking (this is a good tip to save on your life insurance too)
Home fires often are the result of careless smoking, and many insurance companies will charge a higher premium to homeowners who smoke because they're more likely to have a fire in the house.
Don't Believe The Myths About Insurance Premiums
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.