Home Insurance Prices: Factors to consider for Cheaper Insurance
You know the importance of ensuring your home. Understand what determines the amount of your premiums and most importantly, how to get cheaper home insurance. Compare the premiums for your home insurance in 2 min.
Average prices for home insurance premiums in Quebec
Home insurance protects you financially if your home is damaged during a theft, fire, or by bad weather.
In addition, all financial institutions and lenders will require you to acquire home insurance before granting you a mortgage. It is mandatory!
Here is the average annual cost of home insurance premiums for Quebec households according to data collected by Compare Home Quotes.
||Average Annual Cost
|Home Insurance Cost
|Renters Insurance Cost
|Condo Insurance Cost
10 factors That Affect Home Insurance Premiums
Home Insurance Price Factor # 1: Limits of Your Home Insurance Coverage
You can increase or decrease the amount of coverage of certain items such as to $ 1,000 or $ 2,000, for the following:
- Video & audio media including DVDs and CDs
- Jewelry & fur
Art objects and silver or gold items have coverage that is generally limited to $5,000. It will affect the cost of your premium.
Home Insurance Price Factor # 2: High Deductible = Reduced Home Insurance Premiums
The most important factor that can lead to a reduction in your home insurance premium is the amount you choose for your deductible.
The deductible is the amount you agree to pay to cover the cost of damage due to a claim; the rest of the expenses being compensated by your insurer.
If you can afford it, a deductible between $300 to $1,000 is recommended.
Home Insurance Price Factor # 3: Your type of dwelling will affect your insurance premiums
What is your type of dwelling?
- Single-family (bungalow, detached, cottage, level)
What material is the exterior made of?
- Aluminum, vinyl
- Engineered wood (Canexcel)
- Combination of different materials, etc.
Is there a garage adjacent to your home?
Your insurer will likely consider that a fire that originated in your garage could spread more easily to your home. And we know that higher risk means higher home insurance premiums.
What is the year your house was built?
The older your home, the greater the risk of damage to your electrical heating and plumbing systems.
Home Insurance Price Factor # 4: Your Living Environment is a Pricing Factor in Your Home Insurance
Do you live in a rural area?
If your property is in an urban area, is your borough :
- In a developed or historical part?
- Lively (downtown) or peaceful (outskirts)?
- Residential or commercial?
- Near a gas station (increased risk of fire) or near a fire station?
Do you live in a risky environment?
For your home insurance company, if the neighborhood where you live is known for its high level of crime and arson, you will be considered a high-risk client.
Home Insurance Price Factor # 5: Your heating system is looked into by your insurer
An electric heating system represents a lower fire risk for your insurer than a wood or gas heating system, even if they only serve as backup heating.
In addition, an oil furnace represents a risk to the environment.
It is therefore normal for your home insurer to inspect your heating systems (and your electrical system) before setting the cost of your home insurance.
Home Insurance Price Factor # 6: Fire Protection
If a fire breaks out:
- Is a fire hydrant quickly and easily accessible?
- Is the fire safety service nearby?
The amount needed to replace all of your property in case of fire
The price of your home insurance will also be determined by the amount at which the replacement of your property, detached buildings (detached garage, shed, bicycle shelter, etc.) is assessed, as well as all the goods they contain (appliances, furniture, electronic equipment, clothing …).
If you have not renewed your home insurance for a few years, see if the amount indicated for the replacement cost of your assets corresponds to the value of the property you have accumulated or acquired over time.
Discuss this with your Broker or Insurer Partner from Compare Home Quotes and feel free to increase the amount, if necessary. To contact any one of our partner insurers, simply fill-out the solicitation form below.
Home Insurance Price Factor # 7: Your Subsequent Claims Increase the Cost of Your Home Insurance
The number, frequency and type of claims you have made on your home insurance will be considered in calculating your home insurance premium.
Home Insurance Price Factor # 8: Additions That Change the Home Insurance Contract
An amendment modifies or supplements the protections normally included in your home insurance policy. (See above)
Home Insurance Price Factor # 9: Home Insurers Like Good Credit Ratings
Insurers believe that the higher your level of debt, the less money you will spend on maintaining your home (and your car, if you have one).
If you don’t have the funds to change your water heater or replace your roof, it is likely that in case of damage, your home insurance will bear the cost.
The risks perceived from your credit rating will push up the price of your home insurance.
Home Insurance Price Factor # 10: The type of home insurance you will choose
Depending on the level of protection you want, you can choose from :
All-risk insurance coverage
While a little more expensive, this type of home insurance offers you optimal protection against all the risks to your property (except pre-determined exceptions), including your civil liability.
Named Perils Insurance
If you opt for this type of home insurance, you will be protected in case of:
- Fire, theft, vandalism
- Bad weather (hail, ice, lightning, wind damage …)
- Damage from runoff or overflow
- Impact (falling tree, vehicle striking the house …)
- Explosion (and smoke), etc.
You now know what is the basis for calculating the price of your home insurance. To help to clarify your ideas, here are some recommendations from experts to reduce the premiums of your home insurance.
Home insurance coverage available through endorsement (factor # 8)
Endorsements are additional protections that can be added to your home insurance policy.
The most common endorsements cover damage caused by:
- Multiple incidence of freezing and thawing
- Accidental and sudden infiltration of water from:
- the ground;
- columns & downspouts
A rider is also required to properly insure your pool or spa.
Earthquakes can be covered by an endorsement. You may need to add an additional $100 to $200 a year to your home insurance premium.
In summary, to avoid any unpleasant surprises, do not hesitate to ask your insurer or your home insurance broker about the protections you should add to your insurance policy, based on your individual situation.
Exclusions to home insurance policies
Some risks are not usually covered by your home insurance. For example:
- Floods (a stream that overflows into a flood zone)
- Pollution (fuel oil leakage)
- Deterioration of illegally acquired property
- Damage due to an indictable offense that you allegedly committed
- Claims caused by terrorism, war-related or nuclear-related acts
Why are there are many variations in home insurance prices?
To find out which home insurance company offers the best prices, you need to compare several online quotes because there are significant differences in premiums for identical types of coverage.
Shop for your insurer conscientiously as costs can differ by as much as 55% to 125% which translates into savings of $350 to $1,650 if you make the right choice for home insurance.
APPROXIMATE PRICES offered by different insurers for the same type of insurance coverage
|A home in Saint-Hubert
|A condo in Montreal
|An apartment in Saint-Therese
|A house in Saint-Nicholas
**These price examples are from Protégez-vous(2017)
Insurance experts know these facts and are not surprised. There are several reasons for this difference in home insurance prices.
Almost all home insurance companies will definitely use all available means to avoid “undesirable” customers, including giving an excessively high insurance premium.
For example, Ginger sent an online request to some home insurance companies for home and auto insurance. Company A offered him $500 while Company B, with whom she has already been in conflict, offered him $1,050 in premiums.
Majority of home insurers are trying to find their niche in a particular industry such as specialising in young families, or retirees looking for a condo …
Kale, a young father of two (2) young children, also sent an online request for quotes to various home insurance companies to insure his property and two (2) cars. Company X asked for a premium of $1,300 while insurance company Y, whose clients are not usually young families, gave an online quote of $2,250.
Most home insurance companies offer price reductions to new policyholders. On the other hand, these advantageous premiums tend to decrease with time, but at a different pace depending on the insurer.
If you have always been loyal to your insurer because it offered you good premiums a few years ago, it is advisable to make a few online quote comparisons to check if your premium is still competitive.
You can get up to three (3) free online quotes fast by simply filling-out the online request form below.
In Quebec, the auto and home insurance industry has more latitude than in other Canadian provinces since the SAAQ (Société de l ‘assurance automobile du Québec) covers bodily injury caused by vehicular accidents.
We must, therefore, make sure to compare apples with apples and do not put in the same basket home insurance and auto & home insurance.
Finally, companies may check the tolerance of their policyholders to increases in the cost of their home insurance and offer higher premiums. Customer response is considered by actuaries in compiling their statistics.
Every home insurance company has its marketing strategy …
The actuaries of each insurance company collect data on their insured and transform them into statistics. They then calculate the probabilities of claims and determine the average price of the premiums offered.
Given that each home insurance company operates in a vacuum and serves a specific clientele, it is not surprising that the calculation of the average price of premiums differs from one company to another.
Pay even less for your home insurance
Even if your budget is limited, it is certainly possible for you to afford a home insurance policy as protection from damage in case something unexpected happens. Here are some recommendations to help you reduce the cost of your home insurance.
1st Tip to Save on Home Insurance: Shop, Shop, Shop!
Ask for multiple online quotes and compare the proposals received. Remember,while home insurance products are relatively similar, prices can vary greatly.
2nd tip to save on home insurance: Bundle your insurance
The majority of insurers will give you a discount on your premiums if you bundle your insurance policies such as for your auto & home.
3rd tip to save on home insurance: Increase your deductible
The higher your deductible, the lower your home insurance premiums.
4th tip to save on home insurance: Update your heating, plumbing and electrical systems to reduce the risk of damage
- Change Your Oil Heating System (Oil Furnace) for an Electrical System
- Replace your electrical system connected to fuses with a system using circuit breakers
- Convert your lead or steel pipes to plastic or copper pipes …
5th tip to save on home insurance: get an alternative heater
wood heating systems increase the cost of your home insurance because they pose higher risks.
6th Tip to save on home insurance: Reduce the risk of theft and intrusion
The installation of smoke detectors and an alarm system will reduce the risk of claims, especially if they are connected to a central alarm. These safety precautions reassure your home insurance company and may qualify you for lower premiums.
7th Tip to save on home insurance: Inform your insurer of major renovation works done on your home
Inform your insurer of repairs on your roof, or the installation of new windows … With the risk of damage reduced, the cost of your home insurance could also be adjusted downward.
8th Tip to save on home insurance: Have you or someone in your household quit smoking?
Bravo! You have helped lower the price of your home insurance by limiting the risk of fire.
9th Tip to Save on Home Insurance: Use Payment methods Without Administrative Fees
Find out about your payment options! Some insurers may charge an administrative fee if you pay your home insurance premiums monthly instead of annually. Annual premium payments are generally lower in cost than monthly premiums and can give you savings in the long term.
10th tip for saving on home insurance: two-year contract is more advantageous
If you make a claim during this period, the amount of your premiums will not increase before the end of the contract.
11th Tip to Save on Home Insurance: Limit Minor Claims
The fewer claims you have on your record, the lower the price of your home insurance.
Many other simple steps can be taken to reduce the price of your home insurance. Do not hesitate to contact an insurer or a home insurance broker. Their role is to advise you and help you get the best home insurance for you.
Find the right protection at the best price for your home insurance
Buy only the protection you really need … and pay less money.
To do this, let an insurer or home insurance broker in your area search for the right home insurance policy tailored to your specific needs and budget. They will look for the best policy from among the large number of insurance companies in their network.
The professional insurer partners of Compare Home Quotes, an online bid comparison platform, are certified and back-checked. Rigorously selected, all of these (independent) home insurance experts have come together on our website to take advantage of our technology showcase and offer you their best services at the lowest prices.
Take advantage of this free competition. Fill-out the online solicitation form below and get your quotes, free of charge. You will quickly receive up to three (3) proposals that you can compare to choose the insurer or the home insurance broker whose service and products are best suited to your needs. You don’t have any obligation to choose or buy anything unless you are satisfied.
Benefit from more affordable home insurance using our network and speak to our partners about how to get the best home insurance.