When you’re considering buying your first home you likely have many questions.
“How am I going to afford it?”
“What’s different compared to renting?”
“Do I hire a realtor? Which one?”
“How do mortgages work?”
“Do I need a lawyer?”
“Is backsplit a dance move?”
While all of the above are worthy of being researched (especially that last one), we’re going to answer some questions that first time home buyers have about setting up their home insurance.
WHAT IS HOME INSURANCE?
Also known as homeowners insurance or property insurance, home insurance helps protect you and your home in the event of the worst case scenario.
You pay a monthly fee to an insurance company like Erie Mutual Insurance so that if your home burns down, is robbed, vandalized etc. you can file an insurance claim and be reimbursed for what you’ve lost.
Click here to learn more about home insurance.
“We’ve had our home insurance with Erie Mutual Insurance for a few years now and we’ve been very happy. The cost is very reasonable, we appreciated the free home inspection when we signed up and we’ve had nothing but good customer service whenever we’ve had questions. I recommend getting a quote from them if you’re considering your insurance options.” – Linda Calvert, member of Erie Mutual Insurance.
IS HOME INSURANCE MANDATORY FOR FIRST TIME BUYERS?
No, having home insurance is not mandatory in the province of Ontario.
However, as any worthwhile advisor will tell you, having your home insured is an absolute must. The payment you make for home insurance is the second most important bill you’ll have as a homeowner, behind only the mortgage itself.
HOW MUCH DOES HOME INSURANCE COST FOR FIRST TIME HOME BUYERS?
In Ontario, the average cost of home insurance is around $1,200 per year but this number varies a lot because what you pay for home insurance depends on factors such as:
- The size of your home
- The age of your home
- Where your home is located
- Insurance history
- Your deductible setting (higher deductible = lower premium and more savings)
- Special risks
- Applicable discounts
Get a quote for home insurance here.
WHAT IS COVERED BY HOME INSURANCE?
Not everything is covered by every home insurance policy.
For example in many situations depending on where your home is located, flood insurance is not included.
However many scenarios should be covered by your home insurance policy:
- Fire
- Liability
- Fallen trees
- Lightning strikes
- Damage to a fence
- Wind damage
- Vandalism
- Theft
- Boat (depending on value and horsepower)
- Golf clubs
- Jewelry
- Musical instruments
- Snow blowers & lawn mowers
We recommend making sure your most valuable possessions are specifically mentioned in your policy to be sure what matters most to you is protected.
HOME INSURANCE DISCOUNTS FOR FIRST TIME HOME BUYERS
First Time Home Buyer Discount
If you’ve purchased your first home since January 1st of last year you’re in luck! You may qualify for our first time home buyer discount for home insurance which will reduce your home insurance costs by 25%. When combined with other offers, you can save up to 50% off the cost of home insurance. Wowza!
Monitored Alarm Discount
For any type of homeowner, especially first time buyers, having a monitored alarm installed is a smart way to keep your property protected. Bonus: you get 5% off the cost of your home insurance when you have one installed.
Newer Home Discount
If the home you purchased was built less than 10 years ago you can save up to 10% more on the cost of home insurance.
Claims Free and Loyalty Discount
While not available to you immediately, once you’ve been a member of Erie Mutual Insurance for a few years without a claim, you can benefit from a 10% – 15% discount. Long-term loyalty will also reward you with an additional discount.
Multi-Line Discount
For several reasons, it’s usually smart to bundle your home and auto insurance with the same insurance company. One of those reasons? You save an extra 5% when you combine your home and auto insurance with us (and that’s just on your home, you’ll enjoy savings additional under your auto insurance policy as well).
If you have any questions about how buying your first home relates to your insurance please reach out to us any time and we’ll be happy to share our wealth of information on the topic.
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.
