How to Lower Home Insurance

Is It Possible To Lower Your Home Insurance And How?

When buying or owning property in the GTA, homebuyers and owners are required to pay home insurance much like anywhere else. Unfortunately, a home insurance policy can amount to a significant sum, so many GTA homebuyers and owners wonder if and how they can reduce those costs.

Home insurance premiums depend on many factors, like location, condition of the home, age of the home, etc., but there are certain things you can do to push for a lower insurance policy. First, however, you will need to reduce the risk factors that come with it.

Home insurance coverage, just like car insurance, is proportionate to the risk the insurance provider has to take, so by lowering the risk surrounding your insurance, you can also lower insurance costs. Let’s look at the things you can do to reduce risk exposure and, eventually, your home insurance.  

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Repairs and updates on your home

Repairs like roof updates, modernizing your heating and cooling system, setting up an alarm system or surveillance, fire protection systems and anything else that reinforces your home’s resistance and safety are all considered to lower the risk for your home insurance provider so that they might readjust your home insurance policy based on these factors.

If you have had any recent updates, contact your provider to check if they qualify you for lower insurance. Also, if you think about having any updates done, you may contact the insurer in advance and ask which updates and repairs would qualify you for more favourable premiums.

If you are looking to buy a home in the GTA, check out home insurance policies and options beforehand to make sure it fits into your budget.

Choose the same insurance provider for your property and car.

Choosing one insurance company to handle both your home and auto insurance will not only make it easier for you to manage your insurance policies but may also get you a discount. Many Ontario insurance companies provide certain discounts for persons who buy two or more policies with them. Also, make sure to check multiple insurance companies before you decide which one has the best option for you. You do not want to miss out on a great deal because you went with the first insurance company you came across. Explore all offers in your area.

Security systems

We have already mentioned fire protection systems and alarms, but installing alarms such as a burglar or fire alarm that is directly alarming the police or another monitoring body could shave off a significant percentage of your insurance costs.

Keep a good credit score.

In Ontario, insurers are banned from checking your credit score for auto insurance, but they can ask for credit history regarding property insurance. An Ontario insurer cannot deny you property insurance if your credit score is leaning towards the lower end. However, insurance companies still consider a good credit score very beneficial, so most of them will probably give you a more favourable home insurance quote if your credit history is good.

Review your insurance policies every year

You probably want your insurance to cover any significant updates and purchases you made during the year. Still, you also want to cut down on insuring your possessions that are not as much worth as they were 5 years ago, like an old laptop that used to be worth so much more when you first bought it. So always make sure to reevaluate your possessions from a few years ago and not just your brand new things. It will help you balance the insurance costs.

As we can see, a few things can affect your home insurance policy, and there are ways to reduce home insurance costs by keeping the risks low. Anything that makes your home safer, more disaster-resistant and resilient puts you in a more favourable position with your insurer.

For more information on homes, new listings, and home insurance in the GTA, contact Manoj Kukreja. Manoj has been a part of the GTA real estate community for years. With his experience in the GTA market and the home buying/selling process, he can help you with any real estate inquiries regardless of where you are in your buying/selling process. So give Manoj a call to find out more.