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Checklist – 10 tips to keep home insurance premiums down

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Checklist – 10 tips to keep home insurance premiums down

  1. Only insure belongings you own. Most home insurance policies include $6,000 of coverage for fur coats and $5,000 for gold bullion. If you don’t own either, why pay to insure them? Find a provider that lets you personalize your policy and pocket the savings.
  2. Don’t over-insure your house. If you own a house, you should only insure it for the amount it would cost to rebuild, not what you paid for it. When you bought your house, you paid the market price for the building and the land. Home insurance only covers the building.
  3. Increase your policy deductible. The standard policy deductible on most home insurance policies is $500. This amount made sense 20 years ago, but it is quite low by today’s standards. Increasing your deductible to $1,000 or $2,500 is one of the easiest ways to save money.
  4. Don’t file claims for small losses. You have the right to file a claim no matter its size, but most policies include a claims-free discount of 20% or more. So, do the math before submitting a claim. You might be better paying a small loss out of pocket.
  5. Find an interest-free monthly payment plan. Most providers offer monthly payment plans, but some charge interest rates that are higher than what you’d pay on your credit cards. Look for plans that are interest-free.
  6. Shop around for the best coverage and rate. Just because you’ve been with your current provider for many years, or you buy both your home and auto insurance from them, doesn’t mean you’re getting the best deal. Get comparison quotes on the phone or online.
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Courtesy of Advisor.ca © 2018 Transcontinental Media G.P. These materials are for reference and guidelines only. You are responsible for the advice you give your clients.