Paying for home insurance is just one of those things that homeowners have to do. Not because we like it, but because we like it more than losing our valuable or sentimental belongings – including the house itself.
But paying for home insurance can take a serious chunk out of your bank account. Add this to all the other home-related bills you have to pay, and the dollar signs are flying.
Before you grit your teeth and pay that horrendous annual home insurance bill, consider a few of our tips for saving on this necessary expense.
1. Group discounts on home insurance
If you belong to an alumni association, a professional network, or a trade organization, there may be group discounts available to you.
After graduating from a recognized post-secondary institution of higher learning, your alumni association can actually offer quite a list of discounts. These can include:
- various types of insurance (car, home, life, health, etc.),
- cable and internet,
- vacation/travel,
- estate planning,
- banking rates,
- credit card offers, and
- assorted restaurants and services within the school’s community (local hotels, transportation services, bookstores, restaurants, etc.).
Aside from alumni associations, professional networks and trade organizations have similar offers for their members. For instance, Doctors Nova Scotia has a list of member discounts on their website that include:
- OMA Insurance,
- TD Insurance Meloche Monnex,
- Schooley Mitchell (business consultants), and
- a variety of furniture, tech, and cell phone retailers/providers.
To take the most advantage, you should make a list of the associations you belong to and check their websites for information on possible home insurance discounts. Some organizations will offer better rates than others, but you might be able to take advantage of several discounts simultaneously.
2. Bundle other bills with your home insurance
Lots of people bundle their internet, phone, and cable services. Depending where you live, you might be able to bundle some utilities too. So why not bundle your insurance bills?
Car and home insurance can often be bundled together, resulting in some impressive savings. Other types of insurances you could consider bundling are:
- motorcycles, boats, ATVs,
- RVs,
- tenant/rental,
- health, and
- life.
Check your insurance company’s website to see what combinations are possible and what the rates are, then check the same details with other companies.
Combining these bills can get you anywhere from a 5% to 20% discount, so checking for bundling opportunities can save you…well, a bundle.
3. Check your home insurance policy for discounts
Yes, even home insurance companies offer discounts. The possibilities include the usual perks for loyal customers, etc., but there are other opportunities that might surprise you.
Possible reasons for discounts on home insurance can include:
- being mortgage free,
- having plenty of smoke detectors,
- your proximity to a fire station,
- installing a home security system, and
- the homeowner’s age.
Yes, you can even get a discount based on your age – seniors often pay slightly lower rates.
Check their website (or ask your provider for the full list of possible discounts) to make sure you’re receiving all applicable rebates.
4. Reassess separately insured items
It’s possible that your home insurance may already cover items that you’ve insured separately.
Usually, home insurance policies have special clauses for high value items, like jewelry.
If the value of your items exceed your coverage, you can consider additional coverage, or go with a different company that offers different terms of coverage.
5. Ensure your details are accurate
When you first get home insurance, the company needs a lot of info about your residence. Some of the details they need include:
- the building materials used,
- when your shingles were last replaced,
- the type of electrical wiring in use,
- the number of fireplaces and where they’re located,
- the various types of floor coverings,
- and even more.
Naturally, some of these details of your home will change as the years go on. You might do a renovation, add an extra fireplace, update the electrical, and refinish those beautiful floors you found beneath the old carpet.
Mistakes can also happen. Your insurer could have the wrong dimensions of your home written in, or maybe they forgot to update the file when you changed out your shingles for a metal roof.
These are the things that can make a difference to your home insurance policy. If you update them, you might find that some of these changes result in some sweet savings.
6. Get more than one home insurance quote
Home insurance is a product like any other where different providers or brokers will have different prices. Try some of these companies for an online quote:
Some websites will take all your info and then require you to call them to get the official quote, which is annoying. Plus, sometimes the online quote might not be exactly what they offer when you call.
But these quotes can give you a good idea of what’s out there and help you evaluate whether your current provider is comparable, extra sweet, or even, ripping you off.
$25 GeniusCash + Total of $60 off your first four orders + free delivery (Eligible for New Customers in ON and QC only)
7. Increase the deductible
These days, a typical home insurance deductible will be around $1,000. Consider raising the deductible a bit though, and you could see some savings.
The higher your deductible is, the lower your premiums. And while nobody wants to shell out cash for home emergencies, paying $1,500 or even $2,000 to take care of that flood in your basement is a lot better than coughing up the entire cost – which could be upwards of $43,000, according to this news report.
Plus, a higher deductible can make your monthly (or annual) payments more manageable.
8. Optimize your method of payment
Home insurance providers will sometimes charge interest on your monthly payments, so it could actually be costing you slightly more to pay this way. In addition, while monthly payments are often more convenient, if saving money is the ultimate goal, an annual payment might be the way to go.
Paying annually might open more insurance options for you too. There are some companies who will only charge annually, so by accepting this method, you’re opening more doors for more options.
Switching to an annual lump sum can be surprisingly helpful.
9. Improve your credit rating
It surprises many people, but companies will sometimes ask to run a credit check before agreeing to offer you home insurance. While it can be startling, there are reasons why they do this.
Some reasons for this check are:
- it shows how responsible you are with regular payments,
- longevity with your job, address, etc, shows dependability,
- there’s actually a link between credit score and both frequency and severity of claims.
It’s important to note that even if the company runs a credit check and your score isn’t great, your rates won’t go up. They can’t penalize you for this, but you’ll likely miss out on better rates that are available to those with higher scores.
Therefore, working to raise your credit score can help save money on your home insurance – not to mention all the other benefits it brings.
FAQ
What is homeowners insurance?
Homeowners insurance and home insurance are the same thing: a type of insurance that covers your physical house as well as the land and property you own in and around the house. You pay either monthly or annual premiums so your home is protected in cases of theft or damage, whether that damage be from natural causes (storms, fire, etc.) or otherwise (vandalism, crumbling foundations, etc.).
Where can I get a quote for home insurance?
A few bank websites offer online quotes for home insurance. Otherwise, you can contact home insurance providers by either calling or visiting branches in your area to discuss details and get a quote.
What’s the best way to save on home insurance?
There are plenty of ways to save on your home insurance. One of the easiest ways is to bundle all types of insurance together, instead of having them each with individual providers. Most home insurance companies offer discounts for bundling things like car, motorcycle, and even health insurance.
Is TD home insurance the best option?
TD does offer competitive rates for home insurance. Whether or not they are the best choice for you depends on your own personal details, plus those related to your home and property. For instance, if your alumni or business association offers discounts with The Co-operators, then TD might not be the best choice for you.
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Comments
Tenant insurance is a good one Sean, thanks!
Fantastic tip about the mortgage-free discount and not holding on to a HELOC when you don't really need it.