Thanks to inflation, insurance rates tend to climb over time. This is out of your control, as are various other factors that raise your insurance premiums from year to year. Fortunately, there are also some things you can do to offset rate increases. In this article, we explore some of the principal uncontrollable and controllable factors governing your home insurance rates.
The following factors are out of your hands:
- Rising costs of materials and labour
Your home insurance covers repair costs in the event that your house is damaged and replacement costs in the event that belongings are destroyed or stolen. As the cost of rebuilding houses and the prices of consumer goods increase, insurance rates follow suit.
- Increased frequency of extreme weather events
When extreme weather events such as wind storms and wildfires are on the rise, this can result in more insurance claims across the board. As a result, there’s an increase in insurance premiums.
- Increased crime levels in your neighbourhood
If incidences of burglary or vandalism have increased in your neighbourhood, this doesn’t bode well for your insurance rates. Insurers track local crime trends using analytics to determine the likelihood that you file an insurance claim.
The following factors can be adjusted to lower your insurance rate:
- The amount you pay as a deductible
One of the simplest things you can do to lower your insurance rate is to raise your deductible. Your deductible and your premium are in an inverse relationship: when one goes up, the other goes down and vice versa. This is an option to consider only if you’re ready to pay more out of pocket should you need to file a claim.
- Your home’s safety and security features
Home improvements that beef up your security or make your home less susceptible to damage tend to earn you a discount on your insurance. For example, you’ll likely be rewarded for installing a centrally monitored security system, which decreases the risk of your home being burglarized. Another home improvement that insurers tend to like is the installation of a sump pump or backwater valve, as this reduces the likelihood of your making a water damage claim.
Talk to an insurance broker to learn other ways you can earn a discount on your home insurance.
Save On Home Insurance In Edmonton
If you’re looking for expert insurance advice or want to upgrade to a more affordable insurance policy, trust the insurance brokers at MBS Insurance Brokers Ltd. To learn more about how we can save you money on insurance, contact us today.