4 common ideas for home insurance discounts to ask your provider about
Canadians love to complain about the ever-rising cost of home insurance—rightly so. The cost of home coverage keeps soaring like an eagle in the air. Home insurance business is out of control, as it is not regulated like the banks and mutual fund industry are by government. Plus, home insurance isn’t mandatory.
But don’t be fooled. Home insurance is necessary and will be your parachute when disaster strikes. You will likely have no say on whether insurance business should be regulated or not (unless you are a politician), but you can do this. As in every business, you can always ask for discounts. Moreover, there are lots of factors that can lower your home insurance costs.
Here are four common ideas for home insurance discounts to ask your provider about. Take action before your bank account starts to sink like the Titanic.
1. Bundle up
This is the obvious one. Sure, this move will help the insurers as this means more business for them, and several providers will suggest this option.
But is a win-win situation for both parties. For instance, you may be able to save 10-15 per cent on your home premium if you combine car insurance with the same provider. Not bad.
2. Pay annually
Were you aware you would be eligible for a discount by paying for the full year upfront instead of paying month-to-month? This makes total sense as it makes the work much easier for your provider. In fact, some providers may be bill you for extra administrative charges if you pay monthly. Do you have extra cash parked in the bank earning zero interest? The banks are giving us nothing back anyways. Maybe, it’s time to pay your premium up front and save more money.
3. Add an alarm system
Of course, installing a home security system comes with a cost but it is a sold investment for your money. Are you still on the edge of getting an alarm system? Well, guess what? You will be eligible for a nice discount on your annual home insurance premiums if you install one.
Bonus: you can sleep in peace at night and significantly decrease the chances of theft or any other forms of damages. However, please remember the best discounts goes to those who invest in a professionally monitored alarm system. Fair game.
4. Good credit score
If your credit score is above 680, you know you have a good credit history. You have been a responsible borrower and paid all your bills on time, which most Canadians fail to do. You are in a special bracket. Take advantage of it.
Ask your insurance provider to check for your credit rating. Insurance companies akin to all other companies like to think if an individual who has a good credit history are less likely to attack them with several huge claims. This move will definitely help you cut your insurance bill. You deserve the discount, my friend.
Conclusion
Yes, the ideas mentioned above can decrease your premiums but there is no one magic bullet to cure the ever-rising cost of home insurance. Of course, you should always stay vigilant and shop around as different insurers have different rates.