There are a lot of costs that come with homeownership. One very important financial obligation is funding home insurance. While it isn’t necessarily mandatory, it makes very good sense to properly safeguard the largest purchase you will probably make in your lifetime. Furthermore, this is your family’s security that we’re talking about. Having said that, you will want to buy the best protection that you can for the lowest cost. Here are some tips for paying less for home insurance.

Use an insurance broker

Rather than calling around yourself or going to multiple appointments, let someone else do the legwork for you. An insurance broker has all the information about industry rates and packages at their fingertips. When you explain what you’re looking for to fit your family situation, they can give you coverage options to meet your needs. And, you don’t have to pay them for this service since they receive a commission from the insurance company.

Pay your premium annually

Paying for your home insurance monthly may seem like the easiest approach. You can set up an automatic payment plan through your checking account at the bank and reduce the work even more. However, you’re probably being charged more for this approach. If you are disciplined enough to save up each year ahead of time and pay your insurance premium annually, it could save you money.

Don’t over-insure

Take care not to buy more insurance than you need. Your policy will cover your home and its contents, as well as your valuables, to a certain dollar value. Home insurance also assists with your living expenses if your house is damaged and you are unable to live in it for a while. If you own a condominium, make sure that you know what the condo corporation’s insurance includes and what yours must cover.

Consider buying a newer home

You may believe that the age of your home doesn’t matter when it comes to home insurance. However, newer homes are generally cheaper to insure. Basically, that’s because a newly constructed dwelling will likely already come with a warranty so it isn’t anticipated that you’ll be filing as many claims.

Increase your deductible

Home insurance policies typically come with a standard deductible that you have to pay when you make a claim. It may range from $500 to $2,000. Rather than just accepting this, think about what amount you are able and willing to pay in the event of a claim. Raising the amount of your deductible can really reduce your insurance premium.

Negotiate a discount

Ask what you can do to receive a lower premium. For instance, are you an older homeowner who might be eligible for a senior’s discount? Would installing a home security system favorably impact your premium? Is your home a smoke-free environment?
For a more comprehensive look at home insurance, read what the Insurance Bureau of Canada has to say. When you’re ready, I can certainly put you in touch with a few good insurance brokers.