Is your home older than average? Is it more than 50 years old? It could very well cost you more in insurance than a newer property. Here’s why!
First, Assurances Multi-Risques would like you to know that many home insurers prefer new homes. Insurance companies use various statistics to determine insurance premiums. This is known as the law of large numbers. Several insurers have shown that older homes have a higher frequency of claims than new homes. In addition, many insurers will offer substantial discounts to owners of new homes, as they are part of a more targeted market for them. Others will apply a surcharge to older homes to compensate for the additional risk they are exposed to. If you own a heritage or historic home, we strongly recommend that you notify your home insurer. Since some insurers are reluctant to insure this type of residence, it is best to be transparent and disclose everything to your insurance company.
We understand that this situation can be upsetting for you if you own an older home that has been remarkably well maintained. Here are a few tips and suggestions that can improve your situation and, in turn, lower your insurance premium:
- Contact an independent insurance broker who works with insurers that have a greater interest in older homes.
- Maintain your residence and carry out any necessary renovations;
- Ensure that your water heater is less than 10 years old.
- Increase your deductible;
- Consider various scenarios and review your insurance coverage. We recommend requesting a quote for comprehensive coverage and another for specified perils coverage. If you would like to learn more about the difference between these two types of insurance, please refer to our article https://multi-risques.com/en/tips-and-advice/all-risk-best-home-insurance-contract/.
- Be sure to check with your insurance agent or broker to ensure you are receiving all the discounts you are entitled to.
- Combine your auto and home insurance policies with the same insurer.
Assurances Multi-Risques is convinced that by investing in your home, you can reduce your home insurance premium. To ensure you maximize your financial situation, we strongly advise you to contact an independent insurance broker. They will be able to advise you and assist you in managing your risk so that you can sleep soundly.