How to Decrease the Cost of Home Insurance?
On an average, monthly home insurance in Alberta costs $84 if you own a home and $49 if you have taken a home for rent. Compared to other Canadian provinces, homeowners tend to spend more in Alberta because high premiums are often driven by rough natural conditions and their impact on the house. Two of the largest disasters in Alberta include the Fort McMurray Wildfires in 2016 and the Alberta Floods in 2013. Unfortunately, many homeowners were not insured at that time and, lost a lot of financial support in times of need. If the premium costs are too high to afford, there are some simple things you can do to reduce the rates:
1. Get a Broker’s Help – A broker will be able to compare rates for you, get the best products suitable for your individual needs and also offer unique discounts that you might not be aware of.
2. Consider Renovations – By renovating your home, you can save a few hundred dollars on your annual insurance premiums. Generally, the insurance rates are high for older and poorly maintained properties. If you can’t afford to renovate the entire house, just focusing on the kitchen or basement can also help you save on insurance costs.
3. Choose the Right Pipes – Insurers look for the quality of pipes in your homes and usually prefer plastic or copper plumbing. If you have galvanized or lead pipes at home, consider an upgrade during your next renovation.
4. Heating – Insurers tend to prefer electric heat installations or forced-air gas furnaces for heating in your home. For those who have an oil-heated home, the costs may go higher. If you are buying a new house, cross-check the type of heating. Also, before finalizing the deal on your dream home, it might be a good idea to get an insurance quote.
5. Wiring – Aluminum wiring can be quite expensive to insure. Make sure you have approved wiring all through the house as many insurers don’t provide insurance for aluminum wiring. Many companies also require a full electrical inspection before they offer you any insurance.
6. Bundle – It will work in your favour to bundle your auto and home insurance. On an average, the cost of home insurance can go down by 3-7% if you consider bundling your policies.
7. Retirees – Many insurance companies also offer a discount to retirees as they are present on their property more often than those who go to work for long hours.
8. Consider Annual Payments – Many companies may charge additional administrative rates if you decide to pay on a monthly basis. To ensure you have enough funds at the end of the year for the premiums, you can create an online savings account and transfer one-12th of your premium amount every month.
9. Get an Alarm System – If you have been thinking about getting an alarm system, the savings on your insurance will surely help you to make the decision. You can save up to $100 on your annual premiums if you install monitored alarm systems.
Make sure you check properly what is covered and what is not to be sure that you are not missing out on required coverage. With the right strategies, you can surely save some money while getting all the desired benefits of a home insurance.
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