6 Strategies to Save on Home Insurance Premiums

From extreme cold to wildfires and floods, the past few years have brought a historic number of devastating climate and weather events to Canada. These disasters triggered a huge influx of home insurance claims, and analysts expect the increase in both catastrophes and claims to continue.[1,2]

Adding to the problem, construction labour and supply costs have risen, making it more expensive to repair affected homes. Consequently, home insurance rates have surged: In 2024, My Choice Financial reports that premiums are already up 7.66% since last year and are likely to climb further still.[2,3]

For most homeowners, comprehensive home insurance coverage is crucial for financial security. However, massive rate increases can turn a once-affordable home into a financial burden.

But don’t panic! While these broader trends may be out of your control, there’s still plenty you can do to save. Here are our top six strategies to slash insurance premiums while maintaining the protection you need.

1.??? SHOP AROUND

Getting multiple quotes is a smart move for many major purchases, including home insurance. We recommend reviewing at least three estimates while taking into account any differences in the policy terms. If you’d like help, reach out to us for a list of trusted insurance professionals in our network.

2.??? INCREASE YOUR DEDUCTIBLE

Your deductible is the amount you will need to pay on a claim before your insurance kicks in. Choosing a higher deductible can help you save significantly over the long term. According to Ratehub, raising your deductible from $500 to $5,000, for example, could save you an estimated 15% each year.[4]

3.??? BUNDLE MULTIPLE TYPES OF INSURANCE

Customers who bundle home and auto insurance could save up to 25% or more on monthly premiums.[5]? However, before you sign on the dotted line, remember strategy #1 and be sure to shop around. In some cases, bundling isn’t the cheaper option, and discounts can vary between carriers.

4.??? ASK ABOUT AVAILABLE DISCOUNTS

Some carriers offer discounts to “mature” homeowners, first-time homebuyers, or even non-smokers. You may also be able to save by upgrading your home’s protective systems or paying for the full year in advance.[6]? Ask a representative for a complete list of available discounts to see if you qualify.

5.??? AVOID MAKING SMALL CLAIMS

Worried that your premiums will rise significantly in the future? Try to avoid making a claim unless truly necessary. Many insurers offer discounted rates to policyholders who go a certain number of years without filing a claim, and filing multiple claims can result in large increases.[7]

6.??? BE STRATEGIC ABOUT HOME IMPROVEMENTS

Some projects—like updating your electrical system or replacing your roof—can reduce your premiums by making your home safer or less prone to damage. Others can raise your rates because they pose a hazard or make your home more expensive to repair. For example, a swimming pool or extension could make your home more expensive to insure.[8,9]

BOTTOMLINE: Protect Your Investment Without Sacrificing Enjoyment of Your Home

For advice on your specific risks and the type of coverage you need, we recommend consulting with a knowledgeable insurance professional. We’re happy to connect you with a trusted adviser in our network. And if you’re considering a home renovation, feel free to reach out for a free consultation on how it might affect your property value (and your premiums).

The above references an opinion and is for informational purposes only. It is not intended to be financial, legal, insurance, or tax advice. Consult the appropriate professionals for advice regarding your individual needs.

Sources:

1.???? Insurance Bureau of Canada

2.???? MoneySense

3.???? My Choice Financial

4.???? Ratehub.ca

5.???? Ratehub.ca

6.???? LowestRates.ca

7.???? Rates.ca

8.???? MoneySense

9. CREA