5 reasons to shop around for home insurance
You’re always looking for ways to save money, right?
People search different websites to find the best deals on hotels for the next family vacation. You probably compare interest rates when it’s time for your mortgage renewal in order to get the best deal. So, why aren’t you doing the exact same thing for your home insurance premiums?
Too often, consumers don’t shop around for home insurance. Here are five reasons to shop around to find the best rate on your next home insurance policy:
Find a better rate
This is probably obvious, but you may be surprised how many Canadians let their policies renew without reviewing the fine print or comparing prices among competitors. You've probably heard this before, but let’s say it again: shopping around and comparing rates can save you big bucks on your annual home insurance premiums.
Get more discounts
Saving on your annual home insurance policy premium is one way to make the most of your money. Another way is to ask for discounts. If you have more than one insurance policy, shop around and ask for a loyalty (long-time customer) discount. If you have multiple products with one insurer, you are probably eligible for discounts. Insurance companies often offer discounts if you bundle all of your insurance policies (such as home and auto) together.
Additional discounts include having a good credit score, not filing claims in the past, and your profession if you belong to an association that offers group rates. When it comes to saving money, it never hurts to ask for a discount.
Add more coverage
Sometimes people shop around for home insurance because they want to save money on rates or get a discount on their premiums. Other times, people shop around for home insurance out of necessity. If you purchased a second property, such as a mobile home or a cottage, and your current insurance provider doesn’t offer insurance for those types of dwellings, you need to shop around for additional coverage. Compare prices and find out if you can get discounts.
You might also need additional home insurance coverage if you have remodeled your home, or added a new structure to your property.
Move to a new province
Another reason you may need to shop for a new home insurance policy is if you move out of province. If your current insurance provider doesn’t offer coverage in your new place of residence, it’s time to start shopping around.
It’s a good idea to get all the details of your new home (such as the year of construction, heating source, and water supply) before moving. Insurance companies will ask those details when you contact them for quotes. Ensure you have new home insurance on the day you move in.
Your current home insurance policy is up for renewal
This is the absolute best time to shop for new home insurance coverage. An insurance policy is a contract, and you can rarely make changes to the existing coverage while the policy is in effect. However, once you receive notice that the policy is up for renewal, it’s time to start shopping around.
Contact at least three different insurance providers to compare rates for the same coverage. Ask for discounts and don’t be afraid to negotiate. Tell one provider that their rates are higher and ask if they can match or beat a competitor’s rate. You may be surprised to learn that everything is negotiable – even your home insurance premiums.