Home insurance that is both affordable and protects your home’s belongings, its structure and your liability sufficiently can be difficult to find. While price may be the first thing you look at when comparing policies, it isn’t always wise to go with the cheapest rates since you may be sacrificing necessary protection and could risk leaving your property underinsured.
You might be wondering then – how can you find a home insurance plan that works but doesn’t break the bank? Here are the top 5 ways on how you can get the best home insurance rates.
1. Shop around and assess your different options.
Different companies will have different policies with varying coverage, restrictions, and rates. You are not tied down the first option you see, and you can browse the market and compare plans and prices to see what works best for you. Home insurance cost and coverage also varies by area. For instance, home insurance in Oakville may be different than another city in Ontario, and different areas may require different protection plans based on the exposures that they face where they are.
Occasionally, it may do you good to check in with other providers and check to see if the rate that you are getting is the best one possible for you. If you find a plan that is comparable to the policy you currently have with a better price tag, look and see if your present provider can par up.
2. Select a higher deductible.
A deductible is the amount you will be required to pay if you file a claim for damages before your provider will pay out the rest. The higher your deductible, the lower your insurance premiums. Look to see what the cost would be for certain repairs that would require you to file a claim. If your deductible were only $1,000 but you would never file a claim for so little, then you may want to increase your deductible to save some cost on your overall rates.
Keep in mind that the deductible you select should be within reason and only as much as you can afford to pay out of pocket if something happens. Consider discussing with your broker about how much your rates will change if you alter your deductible amount to see if it is worth the modification.
3. Keep in touch with your insurance broker.
A home insurance broker is one of your best resources when it comes to purchasing insurance and saving costs. Your insurance broker will be able to look over your situation personally and help you find coverage that neither underinsures or overinsures your property and lifestyle and can let you in on all the discounts you may be eligible for. Different insurance companies have different discounts and because your broker represents a wide range of providers, they will be able to compare savings and help you find a policy for the lowest possible rate.
An insurance broker will also be able to give you more advice on ways you can save on your home insurance rates based on your personal circumstances and the changes you can make.
4. Look after your property.
This should go without saying, but so many needed repairs and replacements can be avoided altogether with a little home maintenance. Routinely check to see if your home’s security systems are working, your smoke alarm, and assess the function of your home’s systems as often as possible to see if there are any trouble areas that can be fixed before issues arise.
Typically, the more claims you make, the higher your rates will be – even if you are living in a new home and the claims that you made were in your past one. This is because a provider will assume you are likely to make a claim in the future as well. Prevent future claims by looking after your home and taking care of it so that there is less chance of losses.
5. Purchase all your different insurance policies through a single provider.
Many insurance companies will offer special discounts for return customers. If you buy your auto insurance and home insurance through the same provider, for example, you may be eligible for loyalty discounts. This can also save you a lot of time and paperwork.