• The older your home, the higher your insurance premium. Why is that?

    2 May 2018Christopher Johnson

    You own an older home? Your home was built over 50 years ago? Your home insurance premium is therefore likely to be higher than that of a more recent home. Here is why…

     

    Let’s start by saying that insurance companies always prefer to insure new homes. Insurance companies use a set of statistics, called the law of large numbers, to calculate their premiums, and this mathematical law has proven time and time over that older home owners file more claims than owners of more recent homes. Many insurers will therefore offer substantial rebates to owners of new homes since they are the type of clients they are looking for. Some insurers impose a surcharge for an older home in order to compensate the additional risk involved in insuring such a property. If you own a patrimonial or a historical house, Assurances Multi-Risques strongly recommends that you tell your insurer as certain companies do not want to or hesitate to insure such residences.

     

    We understand that this information can be depressing, especially if you currently own an impeccably maintained older home. Here are a few pointers that will improve your chances of decreasing your home insurance premium :

     

    • Contact an independent insurance broker who works with insurers willing to insure older properties;
    • Maintain your house and make all the necessary renovations;
    • Make sure your water heater is less than 10 years old;
    • Increase your deductibles;
    • Make up various insurance scenarios and review your insurance coverage. We recommend that you get a quote for “comprehensive coverage” and another for “designated risk coverage”, and then compare the two. If you want to know the difference between these two types of coverage, read our article at
      https://multi-risques.com/tous-risques-meilleur-contrats-assurance-habitation/;
    • Review your insurance contract with your broker or agent in order to make sure that you are benefiting from all the rebates that you are entitled to;
    • Merge your car and home insurance contracts with the same insurer.

     

    Assurances Multi-Risques is sure that you can decrease your home insurance premium by investing wisely in your home. To maximize your financial situation, we suggest that you contact an independent insurance broker who will counsel you and help you to manage your residential risk factors. You will sleep more soundly at night!