This will be moving time for me in less than 2 weeks! We are going to the notary this week and next week and moving on June 12 and 13th. Time flies big time! So it was time to call for home insurance… and try to save money!
Last week, I called my current insurance company to transfer my home insurance to my next property. I always hate going through this process since it takes a good 30 minutes to answer questions on the phone: what is the size of you home? What year it was built? What kind of heating do you have? Etc…
Since I was going to lose so much time on the phone, I thought of taking an additional 15 minutes and ask more questions about how to save money on home insurance. The girl was nice enough (I’m lucky these days to get nice people on the phone!) to answer all my questions. While she wasn’t able to give me a savings estimate according to each tip to save money on my home insurance, I found this conversation pretty helpful.
Before we start with items over which you may have control, there is one thing you have to take into consideration: the insurance price starts with where you buy. The location of you house is very important. If you buy a property in a area with a higher rate of crime, your insurance will definitely be more expensive.
A few years ago, insurance companies started asking to for access to your credit bureau before giving you a price on your car or home insurance. The reason is quite simple; research has proven that an individual with a great credit score is generally more cautious in all aspects of his life. Therefore, he has less risk of having a car accident or a fire in his house. So when the insurance company requests your permission to look pull out a credit bureau you are better off saying yes if you know that you have a good credit score. This could help you save a few hundre bucks on your home insurance.
Based on the size of your house, the insurance company will assume a cost of re-construction if your house ever burns down. Obviously, the higher the cost, the higher the premium. You don’t have to cover the full cost of the price you are paying because you won’t have to replace the land (hopefully!). Therefore, you can try to decrease the cost of construction by $10,000 for example.
Living near a fire station, having smoke detectors and fire extinguishers will also help reduce your home insurance premiums. On top of that, having extinguisher available at home can be very useful for minor incidents!
If you are buying a house that needs some serious renovations, the insurance company will take into consideration the risk of “rebuilding a part of the house”. If you have trouble with the foundation or you need to replace the roof, you will pay a higher premium.
I always knew that having an alarm system was probably the easiest way to save on home insurance but I had never thought it would be that much of a difference! I would have paid $1,300 per year to be insured without an alarm system. If I get a home security system installed, I will enjoy a rebate of $200 per year! This is 15% off!
I have taken a look at different promotions offered by known alarm companies:
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