Ensuring that you have the right coverage should be your paramount concern when purchasing insurance products. But, let’s face it—we also like to save money where we can. Unfortunately, some so-called savings can end up costing you a lot when claims time rolls around and you learn you have insufficient coverage. However, there are some smart ways to save money on your home insurance without sacrificing the quality of the coverage.
1. Install a Water Sensor
Knowing that water damage is the #1 cause of claims, the installation of a backflow preventive device, a sump pump, and/or a 24hr monitored water alarm system can really provide peace of mind. For example, the AquaTrip water leak detection system is designed to reduce damage caused by leaks, burst pipes or human error. More details are available at www.dcpro.ca.
But, it gets even better – in many cases, the installation of a device of this nature will also earn you a discount on your home insurance. A nice added bonus!
You could save 10% off your premium just for installing a water sensor. Call us to find out more!
2. Install an Alarm
Installing other safety devices in your home can also provide the dual advantage of protecting your home and family, while also saving you money on your home insurance. If you install a monitored burglar alarm system, or a monitored smoke or carbon monoxide alarm system in your home, be sure to let your insurance provider know. That smart move may also entitle you to a discount on your home insurance.
3. Bundle, Bundle, Bundle
Purchasing all your insurance products from one insurance provider can often earn you discounts on your multiple policy purchase. For example, APEGBC members who bundle their home insurance and private auto insurance under the APEGBC Member Insurance Program can earn an additional 10% “multi-policy” discount.
4. Increase Your Deductible
Your deductible is the amount that you are willing to pay out-of-pocket in the event of a claim. While it can seem enticing to keep this amount low, it may be worth calculating the annual savings you will receive on your premium if you increase your deductible. For example, raising a $500 deductible to $1000 could save you 10% on your annual premium. Raising a $500 deductible to $2500 could save you as much as 25%. That level of savings can add up quickly over the years. You must choose the option that best suits your personal needs, however it’s worth at least doing the math the next time you purchase or renew your insurance.
5. Prepare a Home Inventory
Granted, preparing a home inventory doesn’t sound like the most exciting way to spend a Saturday afternoon. But, it truly is time well spent. We pay insurance premiums every year to ensure that our hard-earned possessions are protected in the event of a claim. But, if claims time rolls around and you do not fully report your losses, you cannot expect complete compensation.
Claims time is inevitably stressful – a break-in or major fire is something none of us want to experience. It is unrealistic to expect that we can rely solely on our memory at such a time. A detailed home inventory will allow you to quickly and simply account for all losses, ensuring adequate compensation and relieving some strain at an otherwise stressful time.
If you purchase condo or tenants insurance, a detailed home inventory can also help you save money right now on your premium. The amount of coverage you need depends, in part, on how much it would cost to replace your contents. Therefore, creating a detailed home inventory ensures that you are paying to protect only what you actually own. On the flip side, it will also ensure that you have purchased enough insurance to adequately protect all that you own – a very important consideration come claims time.
These days, there are many ways to prepare a home inventory. You can certainly walk around your home with your camera and home inventory form, but you can also take advantage of the many online solutions now available. Check out these apps designed to make the home inventory process quick and paperless.
Call one of our experienced insurance advisors today and watch your “smart savings” add up!