As a first-time home buyer in Ontario, saving money on your home insurance is no doubt important in managing your new expenses.
There are a number of ways you can reduce the expense of home insurance.
First, let’s go over some ways to save during the early days of your home insurance journey.
1\ Take advantage of our first time home buyers discount
We offer a home insurance discount to first time home buyers that can save you 25% off the regular cost of home insurance.
When this discount is combined with selecting a higher deductible, first time home buyers can save up to 50% off the cost of their home insurance.
That is MAJOR savings for people who are in the process of making one of the biggest investments of their lives.
2\ Shop Around and Compare Quotes
While the average cost of home insurance in Ontario is around $1,250 per year, home insurance rates can vary between providers, so we encourage you to gather quotes from multiple companies to find the best deal for not only your bank account but for your comfort and peace of mind.
Different insurance companies assess risks differently, so one company may offer lower rates for the same coverage. While some insurance companies do not offer the same type of discounts we do.
3/ Bundle Your Insurance Policies
Like many insurance companies, we offer a discount if you bundle your home and auto insurance with us, that’s savings on both policies!
4\ Increase Your Deductible
Home insurance is meant to be a safety net to cover you for the biggest types of claims such as a total loss fire.
It’s not meant to cover the expenses of minor things like a broken window.
With that in mind, opting for a higher deductible can lower your premium.
A deductible is the amount you pay out of pocket when making an insurance claim. We offer 3 levels of deductible for home insurance and the higher amount you choose the more you will save on the cost of your home insurance.
- $1,000 deductible: This is the standard amount with no impact on home insurance premiums
- $2,500 deductible: offers a 10% reduction in the cost of your home insurance premium
- $5,000 deductible: offers a 33% reduction in the cost of your home insurance premium
Make sure you can afford to pay this amount out-of-pocket in case of a claim.
5\ Enhance Home Security
This is something all new homeowners should consider when moving in, whether it’s their first home or not, for reasons beyond saving money on home insurance.
That said, it can also indeed save you money on home insurance! 🙂
Installing security features like fire alarms, smoke detectors and deadbolts can not only help keep you, your family and your property safer, but doing so may also qualify you for discounts as they reduce the risk of break-ins and fire damage.
For example, we offer a monitored alarm discount that can save you 5% off the cost of home insurance.
6\ Go With Basic Coverage, Initially
While you certainly need adequate home insurance coverage, depending on your situation it may be smart to avoid over-insuring with optional add-ons that aren’t essential to you right away.
Instead, consider starting with the basics and expanding coverage as you become more financially stable.
Speaking of longer-term approaches…
Let’s get into a few ways you can keep paying as little as possible for home insurance.
1\ Maintain a Good Credit Score
Some insurers (not us) use credit scores to help determine home insurance premiums.
Working on your credit score can help you get lower rates depending on who you have your home insurance with.
2\ Avoid Small Claims
As discussed above, home insurance isn’t meant for small claims.
Another reason to avoid making too many small claims is that filing claims frequently, especially small ones, can result in a higher premium or a non-renewal by some insurers. Instead, consider paying out-of-pocket for minor repairs and only filing claims for more significant issues.
On top of avoiding increased home insurance costs, you can lessen the amount you pay by being claims-free thanks to our claims-free discount for home insurance that saves homeowners between 10% – 15%.
Of course, as a first time home buyer and new insurance client this discount won’t apply to you immediately, but it’s something to keep in mind as another way to keep insurance costs to a minimum.
Avoiding unexpected issues at home is one of the reasons why having a home inspection done is so important for first time home buyers.
3\ Regularly Review and Update Your Home Insurance Policy
Time flies and things change.
Before you know it you’ll be 5 years into enjoying your first home so it’s important to re-visit your policy annually to make sure you’re getting the best rate.
Circumstances change and your insurer may offer new discounts or deals that you can take advantage of which weren’t available to you before.
We hope this helps! We know how expensive home ownership is these days and we genuinely want to make buying a home as obtainable as it can be using the resources and tools we have.
Taking as many of these steps as possible can help first time homebuyers secure affordable home insurance and keep that new home safe without overspending.
Erie Mutual Insurance proudly serves the commercial insurance, farm insurance, home insurance and auto insurance needs of members throughout Southern Ontario including Haldimand, Niagara and Hamilton.
Please don’t hesitate to contact us with any questions you may have about this or any other topic related to your insurance.
