Why is homeowner’s insurance necessary?
It has been consistently seen in a number of surveys that one’s home is usually the most valuable immovable asset that they possess. Most homeowners invest their life savings in buying a home and then pay the mortgage for the better part of their lives. Hence the importance of keeping your home, the residents as well as the belongings safe from damage can’t be stressed enough.
Most lenders won’t offer you a home loan until and unless you furnish your homeowner’s insurance certificate. In those cases, having insurance becomes mandatory. Most homeowners insurance will also provide you with cover not only for the home structure and belongings but also liability towards life or damage to property of say your neighbor.
How can you lower the premium of your home insurance?
- Compare prices and shop around: The most obvious way is to shop around. A number of websites are available in Canada that allows you to compare the premium, pros, and cons of home insurance and get suggestions based on your exact needs. You could also consult yellow pages. While choosing an insurer, also see if they deliver quality service and has a fast turnaround. Do they have accreditations from safety organizations and industry bodies? This often provides a good measure of the company’s ethos and working style.
- Improve your home security: If you install burglar alarms, fire alarms, flood alarms, deadbolt locks, powerful home cameras and other smart home security devices, there is a chance that your insurer would lower your premium as your home is already quite secured.
- Don’t overestimate the value of your property and get over-insured: You must remember at the time of insuring that when buying your home, you had to pay for the land as well as the home structure. Now, your land is completely safe from most damages and doesn’t need to be insured. Hence, you need to get insurance for your home structure only.
- Stay with one insurer: Many insurers give you hefty discounts if you stick around for long. So go for long-term policies to get additional discounts.
- Make your home disaster resistant: Reinforce your roof, add storm shutters and stronger material to withstand earthquakes. Get the insurance representatives to do a thorough evaluation and chances are that you will have to pay a lower premium.