You could alleviate some of these financial pressures and trim down your home insurance premium by adhering to these seven tips.
As we navigate the sea of adulthood, milestones like financial independence, crafting family plans, and ideally, accumulating enough capital to secure your own home become increasingly prominent. Nonetheless, the financial responsibility tied to home ownership - inclusive of mortgage payments, property taxes, and upkeep costs - can rapidly accumulate. Here's the silver lining: You could alleviate some of these financial pressures and trim down your home insurance premium by adhering to these seven tips:
Embrace energy efficiency when upgrading your home
Every renovation aimed at boosting your home's longevity or energy efficiency can play a part in reducing your home insurance premium. Thus, it's worth considering installing a heat pump, smart thermostats, a solar panel heating system, or more energy-efficient electrical systems. Investing in energy-efficient windows and insulating the basement could also be beneficial. These upgrades may also add value to your property, potentially offering benefits in terms of your mortgage value.
Secure your home with a robust alarm system
Proactive measures that help mitigate fire or burglary risks can lead to savings on your home insurance. Consider installing a comprehensive alarm system – ideally one equipped with motion detectors and connected to a central monitoring station. Don't overlook the importance of smoke detectors and fire extinguishers, and ensure your electrical system adheres to safety standards. Such preventative measures may not only protect your home but also provide peace of mind to mortgage lenders.
Actively ward off water damage
Efforts you make to deter water damage will be recognized by your insurer. For instance, installing a new water heater (which should be replaced every 10 years), a stormwater retention tank, and a safety valve could help prevent water leak damage. Consider installing backflow prevention valves on all home pipes and, if possible, a water leak detector. A roof replacement with more water-resistant materials can also aid in thwarting water infiltration, thereby potentially increasing your home's value and longevity - factors that could influence your mortgage conditions.
Evaluate your needs thoughtfully
Creating an inventory of your belongings and reflecting on your actual needs can help you secure insurance tailored to your situation, minimizing costs. Estimate the value of your possessions based on their current replacement cost and disclose the value of any significant renovations, as these factors can impact the cost of rebuilding or repairing your home in case of severe damage. If feasible, raising your deductible could help lower your insurance premium and potentially allow for more flexibility with your mortgage payments.
Maintain a healthy credit rating
How does your credit rating interact with home insurance and mortgage considerations? A solid credit rating can play a role in securing competitive home insurance rates and favorable mortgage terms. Insurance companies and lenders might view a strong credit history as an indicator of financial responsibility, which can be advantageous for homeowners in various financial transactions.
Consolidate your insurance
It's generally advantageous to have your auto and home insurance under the same insurer. Bundling insurance can offer significant savings along with many other benefits. This could free up funds to apply towards your mortgage payments.
Never overlook potential discounts
If you're part of a professional order, student association, labor union, or other groups, make sure your broker is aware. You might qualify for additional discounts on your home insurance. Every saving you make on insurance can potentially free up resources to contribute towards your mortgage.
By following these tips and ideas, you could save a significant amount on your insurance premium. Discuss with your broker to understand the impact on your home insurance premium, and don't forget, every saving counts towards easing your overall home financing journey, whether you’re a first-time home buyer or an experienced home buyer.
*Certain conditions, restrictions and exclusions apply. The information contained herein is for informational purposes only. Intact Insurance makes no representation, warranty or guarantee that use of this information will prevent damage or reduce your premium.