Home Insurance

How to save on Home Insurance?

1. Combining with automobile
2. Claims Free
3. Customer loyalty
4. Monitored Alarm system in home

What are home insurance premiums based on?

Home insurance premiums can be calculated in many ways. As we are all unique in different ways, premiums are calculated based on the risk associated with each individual situation in looking at multiple factors like:

1. Replacement cost of the building and possessions

The higher the value of your home, the more expensive it will cost to insure it. Also, the higher the value of your possessions, the higher your insurance premiums will be. The rule of thumb is old for new. What insurance companies look at is the value of your possessions at market rate.

2. Where you live

This is probably one of the most important element that is factored into your home insurance premium. Each area has its own story and background in terms of claims filed in the area, the crime rate and etc.

3. Past claims

If you have had past claims on previous homes you have lived in, it could have an impact on any future insurance premiums you take on.

4. What type of security system you have

Depending on the type of security system you have installed in your home, you might be entitled to certain discounts. Typically you would have to show documentation that your internal security system is linked with the police, fire and paramedics for quick response in the event the unthinkable happens.

5. Age of the home

Typically the older the home, the more likelihood that its electrical, piping and source of heat is old and might require more maintenance. These systems could also be susceptible to more damages and the cost to replace is higher than newer systems.

6. Are you a smoker?

If you are a smoker, insurance companies view that as a source and potential hazard for fires to take place in the house. So don’t smoke! There’s a reason to quit; save money.

7. Mortgage

If you were mortgage free, your insurance premiums are a lot lower.

8. Loyalty

Insurance companies will reward you for staying the course and not switching companies like you change shirts.

9. Type of heating.

If your home is heated by an electrical or gas furnace as opposed to being heated by an oil tank, your insurance premiums will be a lot lower.

10. Type of pipes

The type of pipes that are installed in your home do matter a great deal. You want to make sure that your home is installed with copper or plastic pipes as opposed to galvanized or lead piping to reduce he risks of breakages and leakage.

11. Type of electricity.

As household electrics are a common source of fire, the insurance company will want to know how your circuits were installed, does your home have a breaker/fuse box and etc.

What are the ways I can save on home Insurance?

1. Bundle your home insurance with auto insurance.
2. Don’t smoke!
3. Have your mortgage paid off.
4. Install a comprehensive home security and monitoring system that has burglary and fire sensors connected.
5. Insurance companies reward loyalty. Stick with one company that you like and savings will come in no time!

What are the types of home insurance?

1. Comprehensive Coverage

A comprehensive coverage tells you what is not covered. So as long as your claims are amongst the list that is not covered, you’re good to go. It basically covers the contents of your home It does not cover uninsurable perils.

2. Broad Coverage

A broad coverage typically covers the basic perils of insurance like fire, lightning and theft. This is a basic coverage that will not cover what is stated in a comprehensive policy.

3. Standard Coverage

What’s the deal with Condo Insurance?

Condo insurance generally differs from a normal home insurance policy. Condo Insurance can be looked at in two ways:

1. Does a condo corporation own the building?
2. Is it a freehold condo?

Do I need renters insurance?

For most apartment or condo buildings, you are required to show proof of insurance before you sign a lease. This is to protect your belongings in your home and the liability you are imposing on the building. For i.e., if there is a fire in your unit, your insurance premiums will cover all damages in your unit and around you.

The importance of taking inventory of your home’s possessions

We cannot stress how important it is to take inventory of every single item that are within the confines of your home. You need to evaluate everything from socks to spoons as this will all factor in to your insurance premium. It’s all about replacing new for old should something happen like a theft or fire. How you evaluate your possessions can be done simply by thinking about if you lost everything in a fire, how much would you have to pay to get it? If you lost 50 pairs of shoes, you will be entitled to the value of those 50 shoes.

Are we required by law to purchase Home Insurance?

No. But it is highly recommended you purchase a home, condo or renters insurance depending on your situation for personal protection. We live in a world where the unthinkable can happen, even though you might think that it will never happen to you. With home insurance, you can go about your day with a calm peace of mind and live a happy lifestyle.