Home insurance: what's involved and how to save money

Home insurance rates are on the rise across Canada. While the frequency of claims has only gone up slightly, their severity is increasing at an unprecedented rate. There are several general increases that contribute to the cost of your home insurance:

  • The cost of building materials and labour
  • The frequency of large weather-related disasters
  • The cleanup costs of oil heating spills
  • The value of Canadian homes and personal contents

How are home insurance rates calculated?

The factors used to determine your home insurance premium are specific to your individual situation and may include:

  • the age, size and features of your home
  • the materials used to construct your home
  • the estimated cost of reconstruction
  • the location of your property
  • your previous property claims history
  • your home’s heating system
  • the crime rate in your neighbourhood
  • the value of your personal belongings
  • how close you live to a fire hydrant and fire station
  • your credit score (where applicable)
  • the type of home coverage and deductible you choose
  • any applicable discounts
  • the likelihood of windstorms or hail damage in your area

How to save money on your home insurance

You may be surprised by how easy it is to start saving money on your home insurance. Now is the perfect time to make sure you have the right coverage for your needs, at the best rate.

  • Increase your deductible. A deductible is the amount you agree to pay toward the total amount of a loss: your share of the claim. The higher your deductible, the lower your premium.
  • Install security/sprinkler system. Installing a monitored burglar, fire alarm or fire sprinkler system will protect your family and provide savings on your home insurance premium.
  • Consider your heating source. Homes that depend on heating oil or solid fuels pose a significant claims risk and are charged higher premiums. Switching to natural gas or electric heat is safer, cleaner and more economical. If you use wood heat, have your appliance installed/inspected by WETT-certified technicians.
  • Schedule a home inspection. Our trained representatives can assess potential safety issues in your home and ensure that you are receiving all applicable discounts.
  • Replace older roof or siding. If there are signs of deterioration, replace your old roof or siding with a weather-resistant product.

For more information about your home insurance rates and how to save, talk to your Financial Advisor.