7 Ways To Save Money On Your Home Insurance Now

| July 17, 2020

It's been at least 10 years...

Where one would notice that home insurance rates were quickly becoming almost on par with auto insurance rates.

In 2020 home and car insurance rates are almost parallel, and in some cases the home insurance is actually more expensive than the car insuranceWhat can you do as a consumer to make sure you are getting the very best deal for your home insurance?

Let's talk about 7 quick tips you can Implement as soon as possible to help alleviate the rising cost of home and property insurance.

Remember the following: 

1. Newer is better. Especially when it comes to home insurance

Insurance companies usually give discounts on a sliding scale for the first 20 years a newly built home. The newer the home, the higher the discount. The roof and the furnace will usually last at least 20 years before they would need to be replaced. The chance of having a claim due to the structure or construction of the home is much less within the first 20 years.

So if the insurance company is expecting to likely payout less for claims, it stands to reason that you would get a cheaper rate for your home insurance.

2. Buying in bulk will usually save you money on your purchase. Insurance is no different

Bundling your car insurance with your property insurance and even your commercial insurance with the same insurance company can save you up to 30%off of your insurance premium.

Depending on your insurance company this can even extend to family members who are living in the same household, even though they are not on title for the home.

3. Go for the higher deductible

Once you understand the concept that insurance is for a serious financial loss, it will change your mindset about when or why you should make a claim on your insurance.

Many people forget that the average homeowner policy likely covers you for up to $1000,000 in liability coverage and up to $500,000 or $600,000 for the property itself. However, many people still want to claim for small items that are only worth $200 or $300.

Self-insuring for small items will definitely save you money. 

Raising your deductible to $1,000 or higher will lower the premium. 

4. Safeguard your home from water damage

This is the big problem with property insurance. It is not longer fire but water that causes the most damage on average.

Be clear to your insurance agent about all the preventive measures that have been implemented in your home. Have you installed a backwater valve? How about a sump pump? Look for areas where water can gather, build up, and cause problems for your home. Do all you can with the eaves trough and grading to make sure water flows away from your home.

Some insurance companies will give you discounts when you have installed water prevention measures. 

5. Make your home is a smart home

With all the technology today to help you live a more connected and safer life, having a smart home will be an early warning system that can help you get ahead of any foreseeable problem.

One of the easiest ways to save money on your home insurance premium is to have a monitored home alarm system. Being safe at home is really important. However, it will also help you to save %5 on your home insurance premium. That's helpful as well.

6. Premium savings with loyalty

The media will tell you to shop around for the very best rate. This can sometimes be true however there is also a premium savings with loyalty.

The longer you stay with an insurance company, the more often they will be adding what they call renewal discounts for keeping your policy with them.

So if the rate is competitive, and you like dealing with your broker, it is not always in your best interest to change insurance companies for only $5 or $10 a month savings.

7. Do you really need to claim?

Remember, once you call the insurance company even about a hypothetical situation, they will note it on your file.

If you have a broker, it would be more prudent to speak to them about any hypothetical situation or potential claim. You will be able to discuss what the impact will be on your policy and premium, should you decide to make a claim. Many discounts are lost, once there is a claim on your property insurance.

As I've said before, insurance is for a serious financial loss. It is not wise to make a claim of just a few hundred dollars when you're insured for several hundreds of thousands of dollars.

In conclusion

Home insurance can be complicated, and it should take longer than just five minutes to purchase it. Talk to a reputable broker who can walk you through the ins and outs of buying property insurance.

Talk to us here at Bethel Insurance Brokers or, if it's easier, just give us a quick call at 905-683-2323.

We can save you money today!