As a concerned property owner, there’s no denying the fact that you need to get your home insured. After all, your home might be the most expensive purchase you’ll ever make! Now, you might be in a dilemma over whether to go for an affordable rate or good coverage. How about getting coverage for your home that proves to be thorough as well as affordable?
While finding this combination turns out to be a challenge for most, there are ways to secure a low rate home insurance policy in British Columbia. The insurance experts at Surex have come up with this article that will guide you in getting the proper coverage for your home at a manageable cost!
How do leading insurers calculate your home insurance premium?
The leading insurers consider a plethora of factors while calculating your premium for home insurance. If the company assesses your data and considers you a high-risk client, you need to shell out higher premiums. Here are certain factors that would define your risk profile.
- Your location, considering whether it is susceptible to vandalism, disasters, fires, etc.
- Heat sources like wood stoves that might spark a fire. On the other hand, insurers consider radiators safe.
- Your claims record, indicating whether you habitually or frequently file claims.
- The proximity of your home to a fire station or fire hydrant.
- The overall value of your property and the necessary cost to rebuild the same.
- Condition and age of the roof in your property.
- The condition of your plumbing system and pipes.
Tips to get low rate home insurance in 2022
Here are some tips to help you secure low home insurance rates in British Columbia and the rest of Canada.
1. Do your research and shop around
While shopping around is a time consuming task associated with finding the right home insurance policy, you can save hundreds of dollars. Check out online aggregator websites for information, and compare quotes the insurers provide.
Also, do not miss out on checking insurance against consumer guides. In the process, you will get a comprehensive idea of the packages available within your budget.
2. Shell out a higher deductible
Raising your deductible significantly limits your risk profile. Deductible refers to the amount you would pay in case of a loss before the insurer reimburses the rest. With a higher deductible, you eventually lower the insurer’s financial risk. This would reflect in terms of low home insurance premiums.
Currently, most insurers would expect their clients to pay at least $500 as the deductible. Increasing the amount to $1,000 can help you save roughly a significant amount.
3. Strengthening your home’s resistance to disasters
Taking effective steps to mitigate the risk profile of your property would also help you lower your insurance premiums. All insurance companies value customers who are proactive in leveraging their home’s resistance to disasters.
- You can integrate storm shutters and purchase better roofing materials for your home.
- If you live in an older home, make sure to retrofit it. This would enhance the structure’s resistance to earthquakes.
- Invest a few hundred dollars in modernizing your electrical, plumbing, and heating systems. This would lower the risk of water and fire damage, eventually cutting down the premiums.
4. Modernize your shutters and roof
It makes sense to have a word with your insurance agent before replacing or upgrading your roof. The reason is, you can lower the premiums by using some specified roofing materials. For instance, impact-resistant shingles for roofing can prevent hail damage significantly. They also secure the roof from flying debris and wind damage.
Likewise, integrating the exterior windows with impact-resistant glass and storm shutters can work in your favour.
5. Securing your property against fire and theft
Securing your home against common risk factors like fire and theft can lower the premiums. Here are some additional steps that would help you bag attractive discounts.
- Integrating the structure with a home sprinkler system.
- Every floor should have smoke detectors installed.
- Placing functional fire extinguishers on all the floors.
- Installing a system for fire alarms to alert the fire department.
- Integrating all the exterior doors with deadbolts.
- Using a burglar alarm system to keep the local police alert.
- Incorporating smart technologies to alert you in case of a break-in.
Before you spend on any of these systems or technologies, check out whether it would benefit you in terms of lower premiums. Consulting an insurance expert, like a broker, would be highly recommended in such situations.
6. Work on your credit score
You can significantly slash your home insurance premiums if you have an impressive credit record. Insurers habitually check out credit scores while determining how much you need to shell out. A poor credit record can potentially make home insurance policies expensive.
Pro tip: If you have a bad credit score, try limiting your credit card expenses to 10% of the approved limit. This will help you obtain a higher score.
Also, make sure to clear the bills on time and do not seek more credit than you actually need.
7. Don’t switch insurers too often
Reputed insurers reward long-term policyholders with occasional discounts. This explains why you should stick to a single insurer for a long time. Once your policy becomes three to five years old, you can bag up to a 10% discount from the insurer.
Of course, you should compare the premiums with other insurers from time to time. Unless necessary, don’t switch policies too frequently.
Make sure to check out other discounts too. Some insurers offer special deals on home insurance premiums to senior citizens too.
8. Bundling insurance policies
Most people are aware of the multi-policy discounts that many providers offer. When you get different insurance coverages from the same insurer, they would offer you a discount on the entire bundle.
For instance, you might purchase your boat, home, and car insurance from the same company. In these cases, you can save 25% on the total package.
Naturally, you would try to make an intelligent purchase when it comes to your home insurance. The lack of proper knowledge on the best deals often deprives homeowners of affordable packages. It makes sense to consult an insurance expert before you proceed. With proper knowledge of the upgrades that you need to make to your home, as well as the policies, you can make the most of the deals!