Tips for Saving Money on Your Home Insurance
When you’re buying a home, you’re probably thinking about how to best protect your new investment without breaking the bank. A good home insurance policy will not only protect your home. It will also cover damage to the building, your belongings, and your financial wellbeing, should someone suffer an injury on your property. We spoke with Armour Insurance in Edmonton, Alberta to find out how you can lower your insurance costs without sacrificing the coverage you need.
Before Buying a Home
Before buying a home, consider how the features of the property could affect your insurance rates. The below can affect home insurance premiums:
- The age of the home
- Building materials
- Swimming pools and hot tubs
- Location (living in an area with high claim rates or prone to natural disasters)
- Expensive items that require additional coverage
Increase Safety Measures
Implementing safety measures can help reduce the amount you pay for your home insurance.
Installing a fire and burglar alarm system, dead bolt locks, sump pump alarms, a security fence, and smoke and carbon monoxide detectors could qualify you for reduced home insurance premiums. Before investing in these systems, talk to an insurance professional. Find out which systems qualify for a discount and how much you can save on your premium if you install the system.
Make Home Improvements
Home improvements can save you money on your insurance as well. Improvements like strengthening or replacing your roof, updating old circuitry and wiring, and updating plumbing will reduce the risk of damage to your home. As a result, your premiums could be reduced. Make sure you advise your insurance provider if you’re making these, or any other improvements to your property.
Bundle With Your Auto Insurance
Billing and processing can be done more efficiently for one person with multiple policies than for multiple people with only one policy. Because of this, insurance companies often offer multi-policy discounts. By getting multiple (car, home, commercial, life) insurance needs covered by the same provider you can be eligible for discounts. Bundling your home and auto insurance through Armour Insurance can provide you with additional savings of up to 15%.
See If You Are Eligible For A Group Discount
Certain associations, groups, and professional trades can be eligible for insurance discounts. Ask your insurance provider which group discounts they offer. Graduates of any Alberta University, active and retired nurses of Alberta, City of Edmonton Employees, and Edmonton Police are all eligible for 10%-20% savings with Armour Group Insurance.
Optimize your Method of Payment
If you‘re able to pay your full insurance amount in one payment you could get a discount. When you pay monthly, most insurance providers add a 3-4% fee to your premium. Paying you insurance annually could eliminate this fee from your policy.
Improve your Credit Rating
Many insurance companies use credit-based scores as a factor to help determine property insurance premiums. Discounts are sometimes offered to customers with good credit scores. You have the choice whether or not to give your consent to a soft credit check. Improve your credit score paying your bills on time and avoiding high levels of debt.
Raise Your Deductible
The deductible is the amount you pay for damages after making a claim, before your insurance kicks in. The higher your deductible is the less you pay for your policy. Keeping a high deductible will lower your monthly costs, but you’ll have to pay it upfront for any services that result from a claim. Make sure you speak with your insurance broker for details about how a higher deductible will affect your policy.
Final Tips for Saving Money on Your Home Insurance
Finally, to keep your costs low in the short term and long term, make sure you are neither over-insured nor under-insured. Being over-insured can raise your monthly premium. Being under insured means you will not have enough money to cover damages in the event of a claim.
Questions about insurance? Looking for a free insurance quote? Contact Armour Insurance at 1-855-475-0959 or visit www.armourinsurance.ca.
About Sara MacLennan
Sara MacLennan is the Director of Marketing at Liv Real Estate and a licensed Real Estate Associate. The bulk of Sara’s experience and wealth of expertise lies in on-line technology and marketing both for agents and consumers. Sara is the former National Director for Interactive Marketing for Coldwell Banker Canada where she was responsible for an extensive training program traveling to offices across the country training agents and brokers on marketing and technology. Find Sara on Twitter @edmontonblogger.