10 ways to reduce your home insurance premium

Having adequate home insurance coverage to protect your dwelling, property, and possessions is a must-have. After all, buying a home is the most expensive purchase most of us will make in our lives. Therefore, protecting your most valuable asset with a well-rounded insurance policy is a matter of common sense.

While you don’t want to skimp on home or condo insurance protection, it’s also worthwhile to try to save as much as you can. There are different ways to do that, including choosing higher deductibles on specific coverages, maintaining and improving your digs, and taking advantage of home insurance discounts.

Save with home insurance discounts

Here are 10 home insurance discounts your insurance provider may offer that are worth inquiring about:

1. Multi-policy or bundling discount. Most insurance companies will offer discounts of up to 15% off both policies if you insure both your home and vehicle with them.
2. Claims-free discount. Whether you’re a homeowner or a tenant, if you have never filed a property claim with your current provider, you may qualify for a discount. As years pass and you don’t file any claims, this type of discount may increase over time.
3. Affinity or group discount. Some insurance companies will offer discounts to their customers who are members of specific professional associations, trade unions, or post-secondary school alumni groups.
4. Multi-property discount. Do you have a cottage, second home, or condo? Like bundling your auto and home policies, most providers will provide a discount if you purchase home insurance for more than one property with them.
5. Mortgage-free discount. Some companies will offer a discount for homeowners who are mortgage-free and who do not have a secured line of credit on their home.
6. New home discount. Is your home newly built? If your dwelling is under a certain age, an insurance provider may reduce your premium.
7. Home alarm discount. If you have a security or fire alarm system installed in your home, most companies will consider lowering your premium. Home alarms indicate that less loss would be incurred in the event of a theft or fire.
8. Water damage prevention discount. Insurance companies appreciate homeowners who try to avert problems by taking proactive action around the house. One way to do that is to offset the threat flooding poses by having a sump pump, backflow valve, and leak detection system installed. A word to the wise: most standard home insurance policies do not include overland flood or sewer backup mitigation protection. Ask your broker or insurance provider about adding those coverages to your policy if need be.
9. Loyalty discount. While it’s always prudent to shop around before renewing your home policy, some companies will provide you with a discount if you continue to renew your property insurance with them for several years.
10. Mature or seniors’ discount. If you’re a mature property dweller, your age may earn you a discount on your home, condo, or tenant insurance policy. Ask your insurance provider if you qualify as a mature policyholder.

Other potential ways to save on home insurance

Here are a few other things to consider that may reduce your home insurance costs:

• Your credit record. If you have a good credit score and history, insurance providers may regard you as a lower risk customer because it suggests you’re less likely to file a claim. Ask if your good credit record can knock a few dollars off your premium where allowed.
• Reduce your coverage. There are different kinds of home insurance coverage available.A basic package allows you to save money but provides less coverage, while broad or comprehensive packages cost more and offer more in the way of financial relief. Opting for basic coverage is a good way to lower your premium if you are comfortable with carrying the financial risk of some potential losses if you go this route.
• Pay your premium annually. If you can afford to pay your home insurance premium in a lump sum at the beginning of the year instead of paying monthly installments, it may save you money. Ask your insurance provider if paying upfront for the year is cheaper.
• Shop around. As a homeowner and consumer, you have more control over your finances than you think. When purchasing home insurance, it’s worth taking a few minutes to find out what options are within your budget.