Guide: bringing down your home insurance premium

Tips for reducing your home insurance premium

Many factors can affect your insurance premiums, and we feel it’s 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 costs. For example, more things might break down in an older home versus a newer one.

The value of your assets

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

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

Smoker or non-smoker

Quitting smoking is not just good for your health—it’s good for your wallet too, and will save you money on your insurance policy! Another good 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.

Type of coverage

The coverage you add to your insurance policy will also affect your premium. For example, if you have a swimming pool, you can cover it in case it breaks. 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. So it's 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 coverage you selected when submitting your home insurance quote 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 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. So it would be to your advantage to have both policies with the same company.

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. Be sure to mention this 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

The deductible is the amount you must pay in the event of a claim. You can contact your insurance company at any time to change it. Just make sure you have the money to pay the deductible in the event of a claim. Whether you own a mobile home, a tiny home, a townhouse or a row house, we all want to get the cheapest home insurance.

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.