Can I Reduce My Home Insurance Costs?

By: Dany Waldman

Can I Reduce My Home Insurance Costs?

Tags: Home Insurance, Insurance Costs, Toronto Real Estate, Beacon Real Estate Team,

Maintaining appropriate home insurance coverage is one of the many obligations of owning real estate, and costly premiums are an inevitable reality. Unfortunately, as insurance costs continue to increase the standard coverage offerings seem to be decreasing.  

As a savvy property owner, you may have wondered if there are ways to reduce the costs of home & property insurance without forfeiting a comfortable degree of coverage.  

The short answer is yes, but before we offer some ways of reducing your home and property insurance, it’s a good time to ensure that you have a basic understanding of how insurance policies are structured and what makes up your insurance premium. 

Generally speaking, the cost of insurance depends on a number of factors, but they're all tied to one key element: RISK. The greater the insurer's exposure to risk, the greater the cost of insurance. Therefore, if you reduce your insurance providers exposure to risk, they should consider reducing your insurance premiums to better align with that risk.  

This is no different for auto-insurance policies: if you’re a driver with a habit of breaking the laws governed by the Highway Traffic Act, then you’re a greater risk to your insurance provider and, consequently, you will pay more for auto insurance coverage.  

So how can you reduce the exposure to risk of your home or investment property?  

It turns out that some insurance providers are willing to reduce your insurance premiums, often by as much as 10% (or more), if you have undergone some home improvements and repairs that materially improve and protect your property, thereby reducing the exposure to risks associated with loss or damage.   

If you have recently undergone any of the following upgrades, repairs or replacements, we suggest you contact your insurance provider to see if they qualify for a reduction in your annual premiums: 
This list is not exhaustive and you should contact your insurance provider to verify which upgrades and repairs would reduce your annual insurance premiums, and by how much. 
If you have any questions about these or other topics related to home and property ownership, please feel free to reach out to us. We are professional realtors with a passion for real estate and all things related to home and property ownership. We have a network of capable professionals spanning various industries that support home and property owners.






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