Guide: bringing down your home insurance premiums

Tips for reducing higher premiums

Many factors can affect higher premiums, and we feel it is important to explain these factors and give you advice so you can lower your premiums.

Here are some things that could affect your premium:

Proximity to a fire hydrant and fire hall

When you request a quote, the insurance company will check how far your home is from the nearest fire hydrant, and also how far firefighters would have to travel if you ever had a house fire. Being closer to these services can help bring down the cost of your insurance.

Building features

The type of building you live in could affect your insurance quotes. For instance, older homes may be more prone to maintenance issues compared to newer constructions.

The value of your assets

When requesting insurance quotes, you will be asked to estimate the value of your belongings. The higher the value of your goods, the higher your premium. It is a good idea to make a list of your belongings before contacting the insurance company so you can get a type of coverage that meets your needs.

To help you determine the value of what you own, complete the Insurance Bureau of Canada's Property Inventory Form.

Smoker or non-smoker

Quitting smoking benefits more than just your health—it also makes financial sense, potentially reducing the cost of your insurance policy. This is another compelling reason to quit for good.

Type of heating system

The type of heating system in your home can affect your insurance premium. For example, if you heat your home with oil, there is a risk of damage from leaks, meaning your premium will be higher.

Types of coverage

The type of coverage you add to your insurance policy will also affect your premium. If you have a swimming pool, for example, you may choose to insure it against potential damage. The type of policy you choose will also affect your premium amount.

Your credit history and claims history

The number of claims you have made and your credit history can affect the cost of your insurance premium. It is important to have a good insurance record and manage your finances well.

For more information, consult the Insurance Bureau of Canada's guide All About Credit Information and Insurance.

How can you reduce your premium?

You can lower your home insurance premium with these simple tips and advice:

Update your insurance policy

Quite possibly, the types coverage you selected when submitting your home insurance quotes no longer matches your reality. Take the time to contact your insurance company to update your home insurance file. When you call, your agent will review your file and make sure that the types coverage in your contract still meets your needs.

Bundle your insurance policies with the same insurance company

Most insurers offer a discount when you insure your home and car together. Bundling your policies with one provider may offer added advantages. It also makes it easier to get information about your insurance and in case of a claim.

Install an alarm system connected to a remote monitoring centre

An alarm system connected to a centralized location will reduce your risk of theft and, at the same time, your premium.

Take advantage of the discounts available to you

Most insurance companies offer discounts. For example, at iA Auto and Home Insurance, you can save if you have financial products with iA Financial Group. Additionally, they offer a multi-vehicle discount, so if you insure more than one vehicle with them, you can benefit from reduced rates. Be sure to mention these options when requesting an insurance quote.

Upkeep your home

The more claims you have on record, the higher your premium may be. Home maintenance is therefore important. Putting in the necessary work now could save you from larger claims down the line.

Increase your deductible

An insurance deductible is the amount you must pay if you make a claim. You can contact your insurance company at any time to change it. Ensure that you have sufficient funds set aside to cover the deductible should a claim arise. Whether it's a mobile home, tiny home, townhouse, or row house —you want the best home insurance at the best price.

As you can see, your insurance premium depends on many factors, and there are ways to reduce it. Your agent can advise you on how best to save money.