Controlling The Cost Of Your Home Insurance

While it may seem quite complex, insurance is in reality, quite simple. The premiums that you pay go into a large pool at your insurance company and the claims made by you and others are paid from that very pool. Insurance is based on an annual contract, so your premiums (and those of others) are based on how much money the insurance companies think they will need to pay for the coming year’s claims.

So what can you do to control the cost of your personal home insurance? Here are 7 tips from the Insurance Bureau of Canada.

1. Increase your deductible (or your share of the cost of a claim), by increasing the amount you are willing to pay, you will decrease your premium.
2. Look for package deals for insuring your home and autos with the same insurance company.
3. Install a sprinkler system or a monitored burglar or fire alarm.
4. It’s time to quit smoking! Many home fires are caused by careless smoking and therefore many insurance companies acknowledge that non-smokers have a lower risk of fire loss.
5. Build a consistent, claims-free track record. Your premium is calculated to reflect the probability that you will make a claim, those that are unlikely to make a claim pay less than those who are likely to make a claim.
6. Do not over-insure your home by including the market price of the land in the insured value. Whatever the limits of your policy, you cannot claim for more than the actual loss to “insured property” and “insured property” does not include the market value of underlying land. Insure your home for what it would cost to rebuild it.
7. Make sure to ask about other discounts. (ie, some insurance companies provide discounts for seniors).


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