Your home is likely the largest purchase you'll ever make. So it's important to protect your investment with the right home insurance product and the right amount of coverage. But that doesn't mean you have to spend a lot.
Here are nine ways to make sure you get the coverage you need, at a price you can afford.
1. Get professional insurance advice
Have an open, detailed conversation with an insurance advisor about what you own and how much coverage you need. Make sure you have the conversation annually, for as long as you own your home. If you renovate, enhance your property or make a major purchase, let your advisor know so that your insurance coverage can be adjusted.
2. Pay for your insurance annually
You may save money if you pay your premiums (i.e., what you’re charged for the insurance) annually instead of monthly. Some insurers charge a service fee if you opt to pay month to month.
3. Consent to a credit check
Some provinces allow home insurers to ask for your consent to check your credit score. You can say no. But saying yes might save you money if you have a good credit score. Studies have found a link between high personal credit scores and lower risks for the insurer, which could lead to a better rate. This credit check is a “soft inquiry,” which means it will not actually impact your credit score. And your credit score cannot be used as a reason to increase your premium or deny you coverage.
4. Bundle your insurance
You may be able to save if you insure both your home and auto with the same company. Bundling could save you up to 15%.
5. Ask about group insurance plans
Some employers and associations partner with an insurer to offer more affordable group insurance coverage. If you’re an employee or member, ask whether your organization has a group home and auto insurance plan.
6. Install smoke and burglar alarms
You may be eligible for savings if you have a home security system that is centrally monitored for fire and theft.
7. Consider buying a new home vs. an older one
It may be less expensive to insure a newly built home than an older home. That’s because older homes often have a higher incidence of claims than newer homes.
8. Get rewarded for your loyalty
Some insurers may offer savings to loyal customers. You may also qualify for savings if you’ve had home insurance coverage continuously in effect for a certain number of years.
9. Protect your home
One of the best ways to save money on home insurance is to take care of your home and be claims free:
- Prevent water damage by buying water sensors that alert you if there is a leak in your house, or by installing a sump pump with a backup battery and alarm.
- Clean dryer lint trap and dryer vents regularly.
- Prune trees so they don’t overhang your house.
- Clean your gutters in the spring and fall.
- Inspect your roof and shingles to ensure both are in good shape.
- Have your chimney swept in the spring and fall.
- Protect your home from harsh winter weather.
Read RBC Insurance’s Homeowner’s Guide for more tips on protecting your home.
Every insurer is different, and rules and regulations may vary by province. To learn more about choosing the right type of coverage for your home, talk to an RBC Insurance advisor or get a quote online today.
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.