Home insurance: 5 factors that influence your premium

5 factors influencing the insurance premium

The home insurance market is a very competitive industry. The insurance market today is not only competitive but very selective in who they insure. Rates can vary greatly from one insurer to another. It is therefore important to understand the main factors that influence insurers’ rates and decisions on your home insurance premiums We’ve included a few smart tips to save you money.

What are the main factors determining the home insurance premium?


What are the main factors determining the home insurance premium? The premium will differ if the reconstruction cost of your building, tenants’ improvements or renovations are necessary. Being an owner or co-owner, the number of units in the building, if there is a business or a swimming pool in the building.

What heating system is in place (electricity, gas, oil); do you have a backup system, a fireplace? Are all factors that may influence your premium.

Coverage and deductible

The “deductible” – is basically what you would agree to personally cover in the event of a claim. It usually ranges from $ 300 to $ 1000. Ultimately, it is up to you to decide the level and type of coverage desired – for specific risks or all risks, or if you wish to add additional protection to your policy, called endorsements Note that insurance policies will only cover the value of the home without including the value of the land: there is therefore no question of market value or municipal assessment.

Your insurance broker will gladly explain to you what coverages are required and the various possibilities available to you. Read this blog post : Types of home insurance

The fire and/or safety system

Does your fire protection system include sprinklers, how far are you from the nearest fountain or fire station? Does your security system include door and window detectors, and remote surveillance with cameras? These security measures will definitely earn you a discount.

The value of the assets to be insured

Have you assessed the total value of your assets? Knowing the value of what you own is an important fact to know in case of a claim. How much would it cost you to replace them if a disaster occurred?

Your credit report and claims history

In order to establish your premium, the insurer will consider the number, type and value of claims you have made in the past. Finally, your credit information will be critical in determining your background and ability to pay. All these factors will be considered by your broker when evaluating your coverages. Read this blog post : YES! Your insurer has the right to know your credit rating!

Suggestions to save money on your home insurance

Whatever your situation, whether you’re buying a first home or moving to a smaller space, there’s a way to get the right home insurance at the right price.

Here are some tips that can help:

  • Is the new home you are wanting to buy brand new or older? The newest ones have warranties and repairs should be minimal, possibly resulting in reduced premiums from insurers.
  • Can you really commit to paying such a large mortgage? Try to save to avoid turning to the bank for a down payment and aim for the smallest mortgage possible.
  • As the saying goes: “Too much is not enough!” You love your home and furniture you chose, and you want to insure them, but you don’t want to “over-insure” them! Consult a qualified insurance broker to avoid over insuring yourself and get just what’s right for you.
  • Did you have the wisdom to save some money for those rainy days? Consider using it to cover a higher deductible that will earn you a lower premium.
  • Accidents and scratches happen to all of us, but are they worth the cost of a claim? Please be aware that customers who do not have a claim on their file for a few years may get a discount on their premium.
  • ALL insurers appreciate that you combine your home and auto insurance under one roof: under their roof, and they will offer you interesting incentives if you do so.
  • If certain repairs, renovations or improvements are recommended by your insurance broker, such as installing devices in case of water damage, take this into account, you will benefit from it.

Finally, never forget to shop around your insurer with the help of a qualified broker who will listen to you, research, analyze your file and recommend the best ways to save money