Looking for cheap home insurance? We get it – home insurance can be expensive. That said, it isn’t something you should skimp on. In this post, our brokers are sharing their top tips to ensure you’re getting the cheapest home insurance, while still getting the right coverage.
Think about it: What would you do if there was a fire in your home?
Could you afford to pay the rebuilding costs out of pocket?
Better yet, would you want to? 🤔
Yeah, me neither.
Home insurance is an investment in your home, and can save you financially in the event that there are large damages or losses to your property.
And on average, Canadians pay $960 a year on home insurance, depending on which province you live in.
Divided by 12, that’s around $80 monthly.
Considering your home is one of your biggest assets, we’d say it’s well worth it!
Still, it never hurts to save, and today we’re helping you find cheap home insurance that fits your needs.
Keep scrolling to learn our tried and true tips – straight from our home insurance brokers – to lower your home insurance rate.
Prefer to get a cheap home insurance quote now?
Give us a call. KBD offers home insurance in Ontario and Quebec.
Jump ahead to find what you need:
- How to get cheap home insurance (+ top tips from our brokers)
- What’s the cheapest home insurance coverage I can get?
- What factors affect my home insurance rate?
- The best way to get a cheap home insurance quote
How to get cheap home insurance
Now let’s get to the good stuff. 🤓
So, you want to know how you can reduce your home insurance premium?
Keep scrolling, or watch this video where we’re sharing top tips from the home insurance brokers at KBD on how to get the cheapest insurance that also fits your coverage needs. 👇
By following these tips, whether you’re looking for cheap home insurance in Toronto, Montreal, or elsewhere, you’ll ensure that you’re getting the most affordable home insurance and the appropriate coverage.
Let’s get into it.
Top tips for finding cheap homeowners insurance (+ advice from our brokers)
1. Shop around
The first thing we recommend when looking for cheap home insurance is to shop around. Compare rates and coverage options from different insurance providers to be sure that you’re getting the best deal. Just keep in mind that the cheapest option may not always be the best option, so compare both the price and the coverages.
2. Raise your deductible
The deductible is the amount you’re required to pay out of pocket before your insurance coverage kicks in. In general, the higher your deductible, the lower your monthly premium will be. But if you plan ahead, raising your deductible can be a simple way to get a cheaper home insurance rate.
3. Bundle your insurance policies
Some insurance providers offer discounts if you bundle multiple policies together. For example, you may be able to get a discount on your home insurance if you have your car insurance with the same company. Check with your broker to see if you can save money on your overall insurance costs by bundling your policies.
4. Improve your home’s security
Your property’s level of security can affect the cost of your home insurance. Installing a security system, deadbolts, smoke detectors and water detectors can help to lower your insurance rates, as it generally makes your home a safer place to live. Check with your broker to see what applies to your home.
Pro tip: if your property is considered high risk, make sure that you accurately represent your home when you speak to your broker, like Sean Di Fruscio, director of operations at KBD explains:
“Be honest. Sometimes the small details can make a huge difference when it comes to being paid out for a claim or not. At KBD we can accommodate almost any kind of risk, so please divulge anything you think that can make a difference in the material risk.” – Sean Di Fruscio
5. Review your coverage regularly
Your insurance needs may change over time, so make sure that you review your coverage regularly. For example, if you make renovations to your home, your coverage may need to be adjusted to reflect the increased value of your property.
Making sure that you’re properly covered can also save you money in the long run:
“Always insure your belongings for their full value, even if a total loss is unlikely! That way you’ll be sure to get the full amount back for a partial loss (smaller claim).” -Taylor Gormley, insurance broker at KBD
6. Avoid making small claims
We’ve said it before, and we’ll say it again: Frequent claims on your insurance profile will increase your rate! It indicates to insurance companies that you have a higher likelihood of making a claim in the future, which means a loss for the insurance company. So, if you want to keep your home insurance cheap, avoid making claims unless necessary.
And there you have it.
By following these tips, you’ll be well on your way to getting low cost home insurance.
Want to speak with a home insurance broker directly?
We can help with that.
What’s the cheapest home insurance coverage I can get?
There’s no such thing as low cost home insurance per se.
BUT, what you can do is get the cheapest home insurance based on your personal circumstances.
At KBD, we recommend having the following home insurance coverages in place, at a minimum:
- Liability: A minimum of $1M (we often recommend $2M). Read our blog on home liability insurance to understand how this works.
- Deductible: A minimum of $1000
- Fire & flooding insurance: Highly recommended to have in place. The minimum recommended amount depends on your particular circumstances.
Generally speaking, the less coverage you buy, the cheaper your home insurance will be. 💰
BUT, that doesn’t mean that you should skimp on coverage for the sake of saving a few bucks.
What might save you a few dollars upfront, could cost you thousands (or more) if there are damages to your home and you need to make an insurance claim.
Taylor Lowe, director of sales and client services at KBD explains this in more detail:
“Removing coverage from your insurance policy without truly understanding what you’re losing [is a mistake]. Clients are usually stunned when we have to tell them their claim isn’t covered because they had removed that specific coverage to save money!” – Taylor Lowe
What are the 3 biggest factors in determining the cost for homeowners insurance?
In order to determine the price of coverage for your home, your insurance broker will consider several factors including:
- The value of your home (aka: rebuild costs, NOT the fair market value)
- The value of your personal assets
- The coverage requirements set by your mortgage lender
Let’s dive into what this means a bit deeper.
1. The value of your home: First and foremost, you need to determine the replacement cost of your home. This is the estimated cost to rebuild your home in the event of a total loss.
Remember: The rebuild cost of your home is different from its market value, and takes into account factors like building materials, labour costs, and any upgrades you make to your home. A home insurance broker like KBD can help run the numbers for you to get an accurate quote. Let us know your home’s square footage and we’ll take care of the rest!
2. Your personal belongings (Contents insurance): Contents insurance protects your personal items like furniture, electronics, jewelry, and other valuables. Consider insuring your belongings for their replacement value, as it can be expensive to replace them in the event of a loss.
3. The coverage requirements set by your mortgage lender: Most mortgage lenders require you to have enough coverage to rebuild your home if there’s a total loss. This protects their investment in your home, because they have a financial interest in the property until the mortgage is paid off. Be sure to check with your mortgage lender to determine their coverage requirements.
How to get a cheap home insurance quote
Now that you know the tips for getting cheap home insurance, it’s time to find a policy. ✅
You can get a cheap home insurance quote one of two ways:
- Through a home insurance broker: A registered home insurance broker like KBD can help you shop the market in half the time, and get you quotes from multiple insurers. It’s our job to make the insurance buying process easy to understand, and to get you the best coverage at the cheapest rate.
- Through a direct insurance company: Your next option is to go through a direct insurance company. This could be the best choice if you already know which company you want to go with, and if that company has a specialty product that’s not offered elsewhere.
Ready to get shopping?
Give the home insurance brokers at KBD a call.
We’ll be happy to help.
And that’s that.
Everything you need to know about getting cheap home insurance.
Consider home insurance an investment in one of your biggest assets. 🏘️
It can protect your property and personal possessions in the event of damage or loss.
And it makes sense to find the best price.
Just keep in mind that the cost of home insurance varies based on your specific circumstances.
BUT, by following these tips, you can find the cheapest home insurance for you that also provides the coverage you need.
So, to recap, when looking for cheap home insurance:
- Shop around
- Raise your deductible
- Bundle your insurance policies
- Improve your home’s security
- Review your coverage regularly
- Look for discounts
- Avoid small claims
- Consider working with an insurance broker 😉
And there you have it.
The tried and true tips that will ensure that you get the most affordable home insurance possible.
Ready for a home insurance quote?
The team at KBD will be happy to help.
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