VANCOUVER, Nov. 8, 2013 /CNW/ - What do rainstorms and train derailments
have in common? Both have caused many Canadians to call upon their home
insurance policies for assistance in the past year. While those who
filed claims expect their rates will rise at renewal, those who are
claims free don't. Unfortunately, all Canadians will pay more for their
home insurance in the coming year.
It may seem like there's a worldwide conspiracy by insurance companies
to line their pockets with profits. After all, why would your rates go
up if you didn't have a claim? There are several reasons, but the main
one is that your local home insurance provider is part of the worldwide
market. That means disasters (and claims) from across Canada and around
the world affect the rates charged for your policy.
While rising home insurance rates may seem almost as certain as death
and taxes, there are several simple things you can do to save money.
Here are 10 cost-saving tips from Square One:
Only insure belongings you own. Most home insurance policies include $6,000 of coverage for fur coats
and $5,000 for gold bullion. If you don't own either, why pay to insure
them? Find a provider that lets you personalize your policy to your
needs and pocket the savings.
Don't over insure your house. If you own a house, you should only insure it for the amount it would
cost to rebuild, not what you paid for it. When you bought your house,
you paid the market price for the house and the land. Home insurance
only covers the house.
Increase your policy deductible. The standard policy deductible on most home insurance policies is $500.
This amount made sense 20 years ago, but it is quite low by today's
standards. Increasing your deductible to $1,000 or $2,500 is one of the
easiest ways to save money.
Don't file claims for small losses. You have the right to file a claim no matter its size, but keep in mind
your policy includes a claims free discount that can total 20% or more.
So, do the math before submitting your claim. You might be better
paying a small loss out of your own pocket.
Find an interest-free monthly payment plan. Most providers offer monthly payment plans, but beware because not all
plans are created equal. Many plans charge interest rates that are
higher than what you would pay on your credit card. So, look for plans
that are interest-free.
Shop around for the best coverage and rate. Just because you've been with your current provider for many years, or
you buy both your home and auto insurance from them, doesn't mean
you're getting the best coverage or rate. Get comparison quotes online
and you'll likely find a better deal.
Recommend your friends. If you're happy with your provider, ask if they have a referral program.
Some companies offer account credits for each person you refer who buys
a policy. Not only will you save money, but you're helping your friends
save money, too.
Install a backwater valve. These devices prevent water backing up into your home from the city
sewer system. The device costs about $100 and installation costs about
$1,000. Many cities offer rebates, and some insurance providers offer
discounts, for installing these devices.
Replace plastic plumbing hoses with braided steel ones. The plastic hoses connected to fridges, dishwashers, washing machines
and toilets can leak quite easily. Replacing these hoses with braided
steel ones to reduce the chance of a loss, which helps keep your
Install a monitored burglar alarm. All insurance providers offer discounts if you have a burglar alarm
installed, activated and monitored. So, consider installing one. Not
only will you save money on your home insurance, but you'll also have
some extra peace of mind.
If your home insurance rates skyrocket at renewal, follow these 10 tips
from Square One and you can save hundreds of dollars. For more home
insurance tips, visit www.squareoneinsurance.ca.
Established in 2011 and based in Vancouver, British Columbia, Square One
offers the only home insurance policy in Canada that can be
personalized to your unique needs. That means you only pay for the
protection you need. Square One is also one of the few providers to
automatically include earthquake, sewer backup and broad water
protection in its policies. Square One currently serves British
Columbia, Alberta, Saskatchewan and Ontario. For more information about Square One, or to get an online
quote, visit www.squareoneinsurance.ca.
SOURCE: Square One Insurance Services Inc.
For further information:
Square One Insurance Services Inc.
Tel: 1.855.331.6933 ext 101