These days everyone is looking to save a dollar. But is skimping out on your home insurance really the answer?

Everyone with a mortgage is required to have homeowners insurance on their property but the minimum requirement is for fire, lightning and explosion coverage only. When this home insurance was first introduced fire was the leading cause of claims, and remained that way for many years. These days wind, hail, water damage and sewer backup have far exceeded the number of fire claims occurring.

So how can you save money without sacrificing coverage?

1. Updates: most insurance companies give more favorable rates if you have updated your roof, furnace, electrical, plumbing and hot water tank. Make sure your insurance broker has the most up to date information for your policy.

2. Credit consent: over the past few years, insurance companies have started using credit scores to offer discounts. The companies that we deal with hire a third party to pull the credit score and assign a discount for your policy. The insurance company and our brokers will never see your credit score. If you are worried about your credit not being great, don’t fret. A less than perfect score will not be used to increase your premium.

3. Preventative measures: centrally monitored alarm systems, water sensors, backwater valves and sump pumps will all help to reduce your premium and decrease the likelihood of having to go through a claim process.

4. Increase your deductible: review your policy documents and find your deductible. A deductible is the portion of a claim that you agree to pay. For example, if you have a $500 deductible on your house and have a water claim, you will have to pay the first $500 of the claim expenses. The industry norm was $500 just a few years ago. Now, insurance companies are giving sizable discounts for $1000, $2500 or even higher. Just make sure you don’t choose a deductible that is higher than you can afford if you need to make a claim.

5. Bundling home and auto: all insurance companies will offer a discount if they insure your home and auto insurance. Some companies will offer additional benefits, such as a lower interest rate for monthly payment plans or only paying one deductible if one event causes a claim under both policies.

6. Pay off your mortgage: companies offer a substantial discount when you pay off your mortgage

7. Loyalty: insurance companies will offer a loyalty discount to clients after they have been insured with them for a couple of years

Your home is your largest asset and we want to make sure that you have the best coverage available in the event of a claim. Deleting coverage to save money can end up being a costly mistake. As brokers, we work with you to try and find affordable insurance that best fits your situation. Contact us today!