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Canada - ENHow to Save on Home Insurance in Canada
Your home is one of the biggest investments you’ll ever make and protecting it with the right insurance matters. The good news? You have more control over what you pay than you might think.
Recently, though, Canadians may have seen their premiums rise, in part to factors like severe weather, such as floods and wildfires, and the growing cost of repairs and rebuilding. Every dollar counts – and finding affordable, reliable home insurance is a smart place to start. Whether you rent, own a condo, a home, or a cottage, it is possible to save on your home insurance.
It starts by understanding what affects your premiums, which can help you strike the right balance between cost and protection. From bundling insurance policies to upgrading your home security, here are nine ways you can save on your home insurance premium in Canada.
Key takeaways
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Home insurance premiums in Canada are rising due to factors like severe weather and higher building costs.
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Your home insurance premium is shaped by three main factors: your location, your property, and your level of coverage.
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Comparing quotes and bundling policies are two of the most effective ways to lower home insurance costs.
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Preventative home maintenance and system upgrades can reduce risk and help keep premiums lower over time. Having a severe weather resilient home can also reduce premiums.
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Reviewing your coverage after making improvements to your home can ensure you’re not paying more than necessary.
What affects your home insurance premium?
How much does home insurance cost? It isn’t a one-size-fits-all product. Your location, your property, and your coverage level all play a role in determining how much you’ll pay. Understanding these factors can help you make informed decisions about your insurance options and a licensed insurance advisor can help you assess what makes sense for your situation.
Location
They say real estate is all about location, location, location. The same could be said for home insurance. Insurers use data about your property, such as the proximity to flood zones or wildfire risk areas, and distance from the nearest fire hydrant or fire station, all of which can influence your premium. Local crime rates are also taken into account.
Your property
Your property is another factor in determining home insurance costs. Do you live in a modern condo or a heritage-style cottage? Is your home large or small, new or older? Older homes may come with outdated building components like wiring, aging plumbing, or an older roof. These are risk factors which could increase insurance premiums.
Newer homes, on the other hand, may see a lower premium because they’re built using modern materials and come with updated safety features.
The type of home also matters. Detached homes generally have higher values insured and therefore come with higher premiums than condos. , Condo owners have a different coverage profile, since the condominium corporation insures part of the building.
Your coverage
Optional add-ons (known as endorsements) will also increase the overall cost of home insurance, but they also fulfill an important coverage need.
Another factor to consider is your claims history. Previous claims can signal a higher risk to insurers. As a result, this may lead to higher renewal premiums.
Nine ways to save on home insurance
Looking for cheaper house insurance? Here are some practical strategies that can help reduce your costs, both now and over time.
1. Compare insurance quotes
No two insurance quotes are identical, and rates for the same property can vary significantly between insurers or additional coverage. Comparing options is a smart place to start. You can start with an online quote for home, condo, or tenant insurance.
2. Bundle your home and auto policy
Bundling your home and auto insurance with the same provider is one of the easiest ways to save. Many insurers offer discounts for bundled policies, including RBC Insurance. Homeowners can save up to 15 per cent by combining policies – which also helps simplify managing your payments.
3. Increase your deductible
If you’re looking to lower your premium, increasing your deductible is another option. Your deductible is the dollar amount you’re responsible for paying on an insurance claim. Many homeowners choose deductibles of $500 to $1,000, but increasing it to $2,000 or more could help reduce your premium.
This approach does involve a trade-off. While you’ll pay less in premiums, you’ll pay more out of pocket in the event of a claim. Before increasing your deductible, consider whether you have the funds available to comfortably cover this amount if a claim arises.
4. Install home security and alarms
Professional security alarms and water sensors do more than provide peace of mind; they could also help lower your insurance costs. Many home insurers recognize and reward these system.
There’s a difference between a ring camera and a professionally monitored security system, which is why it’s a good idea to confirm your eligibility for a discount with your insurance provider first.
5. Upgrade high-risk home systems
Older homes often have hidden insurance risks. Aging plumbing, outdated electrical wiring, or an older roof can all increase the likelihood of claims. Upgrading these systems not only help improve your home’s overall safety and efficiency, but may help reduce your insurance premium. Be sure to inform your advisor of any upgrades, as insurance companies can’t evaluate your insurance rate until you inform them of the work you’ve done.
6. Consider buying a newer home
If you’re planning a move, or are buying your first home, a newer home can be a good choice from an insurance perspective. New builds are typically compliant with the most recent building codes, use modern materials, require less maintenance, and may still be covered by a builder’s warranty – all of which can translate into cheaper home insurance.
7. Protect your home
Keeping your home well-maintained can help prevent insurance claims, which keeps your premiums low over the long term. Some simple steps that could help reduce your risk of a claim include:
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Installing water sensors or a sump pump with backup power
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Cleaning dryer lint traps and vents regularly
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Pruning trees to prevent branches falling on your home
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Cleaning gutters in the spring and fall
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Inspecting your roof and shingles
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Scheduling regular chimney maintenance
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Leaving space between your home and garden beds
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Preparing your home for winter weather
8. Review and adjust your coverage at renewal
Your insurance needs may change over time. Rather than automatically renewing each year, take a moment to review your policy. Renovations, major purchases, or lifestyle changes can all affect your coverage needs. Maybe you need more or less coverage now than you did in the past. A licensed insurance advisor can help ensure your policy stays aligned with your circumstances.
9. Ask about discounts
It’s always worth asking an insurance provider about available discounts. There may be special savings available for certain employee groups, unions and guilds, and alumni associations. Members of the military and other people employed in community service may also qualify for discounts, as might loyal customers with a long history with the insurance company. Speak to an advisor to find out.
Protect your home and save on insurance costs
Buying and owning a home is one of the biggest financial commitments you can make, and protecting it matters. The good news is there are ways to protect your property and save on insurance costs at the same time. A licensed insurance advisor can help you find the coverage that fits your needs, your home, and your budget.
Great Rates and Expert Advice on Home Insurance
Get a free online quote* for coverage to protect you, your property, and your belongings from the unexpected.
*Home and auto insurance products are distributed by RBC Insurance Agency Ltd. and underwritten by Aviva General Insurance Company. In Quebec, RBC Insurance Agency Ltd. Is registered as a damage insurance agency. As a result of government-run auto insurance plans, auto insurance is not available through RBC Insurance in Manitoba, Saskatchewan and British Columbia.
This article is intended as general information only and is not to be relied upon as constituting legal, financial or other professional advice. A professional advisor should be consulted regarding your specific situation. Information presented is believed to be factual and up-to-date but we do not guarantee its accuracy and it should not be regarded as a complete analysis of the subjects discussed. All expressions of opinion reflect the judgment of the authors as of the date of publication and are subject to change. No endorsement of any third parties or their advice, opinions, information, products or services is expressly given or implied by Royal Bank of Canada or any of its affiliates.
