As you probably know, having homeowners insurance is not mandatory by law in Québec. However, purchasing home insurance is one of those things where, just because the law doesn’t make you do it, doesn’t mean you should skip it. Kind of like brushing your teeth. Or putting on sun lotion. All of these things are not required by law, yet in the future, you will be infinitely thankful that you took the time and the care to do them nonetheless.
Homeowners insurance protects you from potentially massive costs that can arise from damages to your home, theft or vandalism, or even from injuries that others have sustained on your property. And while there’s never a guarantee that something will happen that will require your insurance to step in, there’s also never a guarantee that you’ll coast through your existence as a homeowner without even the slightest accident. As always, it’s better to be prepared than to face a nasty and expensive surprise at some point down the line.
However, homeowners insurance does come at a price. You’ll have to pay monthly premiums, and in some cases may have to meet a certain deductible—meaning a certain amount of money you have to pay before insurance kicks in—when filing a claim. But when people are looking for ways to save on their homeowner’s insurance, the first thing on their mind is ways to lower their monthly premiums. That makes sense since those payments are parts of your fixed monthly expenses, such as mortgage payments, phone bills, and utility costs, which you’ll have to meet. Here are some strategies to help lower that monthly bill:
1. Choose higher deductibles
One of the quickest ways to lower your monthly premium is by choosing a plan with a higher deductible. However, make sure that you’re choosing a dollar amount that you’d still be able to afford if you do need to make a claim. There’s no point in saving on monthly premiums if you’re suddenly unable to meet your deductible when you need your insurance to kick in.
2. Get multiple quotes from multiple providers
Before you settle on one plan, you should definitely shop around and get multiple quotes. Not every provider will charge you the same amount for the same coverage, or some may have deals for new customers. The downside to this is that you usually have to do quite a bit of legwork to sort through all of the offers, potentially even wasting time on the phone with multiple insurance agents while they pitch you their plan. The good news? All of that is old news with YouSet.
From the comfort of your own home, you can answer a couple of questions online and receive a personalized and comparable list of recommended policies, with the lowest price guaranteed. And once you find the right quote for you, you can easily purchase that policy online, right on our website.
3. Consider bounding insurances
Another way to try to lower your monthly premiums is to ask a provider whether they provide a discount if you purchase multiple policies—for example, homeowners and auto insurance. Some insurance providers may offer these kinds of discounts upfront, but if you find a provider who offers the coverage you need on all fronts, it’s worth asking.
4. Install extra security
The amount of your premium depends on a lot of factors, including where you live, whether you’ve made multiple claims before, and what your living situation is. Insurance providers don’t like risks, and the more you try to show them that you’d be a low-risk client, the more likely they are to give you a lower monthly premium.
One way to do that? Put in the extra work on making your home secure, thereby showing providers that your home is less of a break-in risk. Installing cameras and a home security system is an investment that will pay off in lower monthly premiums.
5. Have a good credit
Yes, this is basically the same advice that’s given to anyone trying to get a better deal, from interest rates to credit card fees, but it holds true. The better your credit score, the more likely insurance providers will see you as a lower risk. And lower risks mean potentially lower premiums.
If your credit score is not looking so great right now, focus on paying off high-interest debt and limit taking on any new credit. If your credit score is exemplary, point that out to providers and ask whether they’d consider lowering their premiums in light of your model score.
6. Determine exactly how much coverage you need
Make sure you’re only paying for what you really need. If you live someplace that isn’t a known flooding risk or close to forests that tend to burn during wildfire season, you probably don’t need a bunch of extra protection add-ons.
Most homeowners insurance in Québec offers two types of coverage: Basic and Comprehensive. Basic coverage only covers events that are specifically named in the policy. Comprehensive coverage covers everything except events that are specifically excluded from the coverage. If you find a basic coverage policy that covers the events you’re most concerned about, then you’ll be looking at a lower monthly premium than if you went with comprehensive coverage.
7. Ask for a discount if you haven’t had any claims
If you haven’t made any insurance claims before, you could make the argument to insurance providers that you’re a low-risk client. And there is nothing insurances love more than low risk.
8. Mortgage free discount
Kind of the same concept here: Insurance providers aren’t always particularly thrilled to see people who have multiple lines of credit open, since that implies a higher degree of risk. But if you own your home without an outstanding mortgage, insurance providers may reward you with a discount on your monthly premiums.
9. New home discount
Old homes can be beautiful. That original crown molding, those large bay windows, the old wooden floorboards… Do you know what isn’t beautiful? Old pipes, unstable foundations, and wiring from the past century. Insurance providers consider older homes more at risk for damages, fires, flooding, and other kinds of ailments.
But if your home is no more than 10 years old, insurance providers will consider it less of a risk—and offer you a lower monthly premium.
10. See if you can switch to annual payments
Another method is to ask a provider if they’d consider annual payments instead of monthly payments. By offering to pay your premiums for the year in one lump sum upfront, insurance providers may be more willing to provide you with a discount for the overall amount.
As you can see, there are quite a number of strategies that can be employed to try and lower those premiums. With YouSet, finding an insurance policy that works for you and your budget is never a challenge. We help you get the best price, without you ever having to get up from your sofa. Check us out!