The average Ontario homeowner will pay about $1,300 a year in home insurance. When you factor in your auto, life, and even health insurance, you are spending a few thousand dollars per year. At a time when many homeowners are house-rich and cash-poor and living paycheque to paycheque, these can be expensive outlays to endure every month and year. With property tax rates going up in the city of Toronto, it is going to be harder to afford anything else.
Whether you are a new homeowner or you want to change your coverage, it is important to understand how to attain the best home insurance policy at the best price. Indeed, different homes and different areas will require different insurance, but there are ways to save money on home insurance that you can take advantage of.
We have compiled a handful of different scenarios where you can save on your monthly premiums. Unsure how to do it? We have you covered! Here is a guide on how to save money on homeowners insurance:
How to Save Money on Basic Insurance
Since insurance can oftentimes be expensive, homeowners usually just want the basics. It’s like anything else in life, such as a smartphone plan or a cable package. Every insurance company does offer its clients a basic homeowners insurance policy that covers most common household problems, like fire and smoke, vandalism, theft, and damage. Depending on who you partner with, you could have multiple policy options that cover different basics.
If you are planning to get multiple insurance policies, bundling is a terrific way to save money on homeowners insurance. Right now, you may have automobile insurance, life insurance, and even long-term disability insurance separately, all with different organisations. Why not bundle them altogether with the same company? This way, you not only make it easier to submit a claim and organise your coverage, but you can also get a discount, which is an average of 10 percent.
How to Save Money on Insurance for Condos & Mobile Homes
Condo insurance is a different type of homeowners insurance from a detached or semi-detached house. Usually, a condo policy will extend to the ceiling, floors, and walls of your unit. At the same time, when it comes to the remainder of the building, you will typically acquire an insurance policy that is given by the homeowner’s association.
In addition, a mobile home is vastly different than a townhome and, thus, will require different insurance needs. A basic mobile homeowners insurance policy will contain many of the rudimentary aspects of a conventional product, such as water damage, theft, or fires.
For condos and mobile homes, installing security features would be a great way to save money on homeowners insurance. Most insurance providers will extend to you a discount on your monthly premiums if you install a diverse array of security apparatuses. These could range from additional security cameras, the most durable lock and key system you can find, and all sorts of anti-theft technology that will impress agents enough to lower your monthly bill.
Save Money By Making Your Home Disaster Resistant
In addition to a basic insurance policy, you could add some other elements in order to save money on homeowners insurance. This might consist of freezing systems, sudden damage to the foundation, an imploding roof from weight, or cracks from falling objects. There are all sorts of broad-based items you can add to your basic coverage.
And then there is the most comprehensive homeowners insurance policy that covers everything under the sun. This coverage includes the mundane and the extraordinary. Here is what you can anticipate in the policy:
- Natural disasters (earthquakes, floods, and landslides).
- Infestations of rodents, vermin, and insects.
- Mold, fungus, and rot inside the house.
- War, nuclear hazards, and riots.
- Your pets and other animals.
Since many home insurance policies do include disaster coverage – natural and man-made – companies are far more willing to give you a discount if you can prove that your home is disaster-resistant. This might be hard and expensive to install, but it is worth the long-term savings, plus you always want your home to withstand fires and floods.
Unsure how? Here are just a couple of simple tips:
- Ensure the foundation moisture is persistent.
- Install flexible utilities.
- Utilise reinforcement procedures and measures.
- Brace the cripple walls with plywood.
Most important of all, it would be a prudent idea to hire a contractor to perform a home inspection.