Misconceptions & How to Save Money on Home Insurance: 6 Tips and Tricks

| 2023.06.15
Misconceptions & how to save money on home insurance: 6 tips and tricks

While every homeowner hopes they won’t ever need to file an insurance claim, having a home insurance policy in place is still essential. This type of coverage is designed to provide the necessary financial support in the event an accident occurs.

However, every policy has its limitations. In order to ensure you are effectively covered if something unexpected were to happen, it’s critical to understand the available options.

In this article, we’ve put together a list of important tips to remember about your home insurance that will help you to find the right insurance to fit your needs, while hopefully saving you some money in the process.

6 Tips about Home Insurance

1. 30-day vacancy rule

A property owner whose property is vacant for more than a month may run the risk of having their coverage voided.

The difference between a “vacant” and “unoccupied” property is typically whether or not there is furniture inside. A furnished residence indicates that the individual intends to return to the space.

Remember to check with your insurance company what their rules are about vacant properties.

2. Jewelry is covered to a specific limit

In most cases, home insurance provides coverage for lost or stolen items. With certain items such as jewelry, there may be coverage only up to a predetermined limit. To ensure your valuables are properly protected, we recommend that you have your jewelry appraised and contact your insurance company or broker to discuss adding additional coverage to your policy. .

3. Limitations for rare items

Most home insurance policies include limitations on specific rare items such as fine arts, stamps or collectibles to list just a few. Without additional riders purchased for your policy, these personal property items within your home may not be completely protected.

4. Most policies limit coverage for sewer backups

Many home insurance policies will limit coverage for sewer backups or other water damage claims. This is something that has changed over the years due to the increase in water damage claims. It is important to regularly review your home insurance policy in order to fully understand your coverage options. Contact your Insurance Advisor or Broker to discuss in detail to make sure you fully understand any limitations.

5. Maintenance exclusions

As a homeowner, it is your responsibility to manage the upkeep of your property. While things like natural disasters cannot be avoided, other problems related to maintenance often can be. In cases where it is found that the damages incurred were due to maintenance then there may not be coverage available.

6. Remodeling is not reflected in coverage

Adding value to your home through renovations may have an impact on your insurance policy. Depending on the extent of the remodelling, there may be changes that are needed to your policy. These could include increasing the rebuilding cost of your home or you could receive discounts to your policy that will lower your premium. Another important part of renovations is to make sure that you contact your insurance advisor or broker prior to any renovations to make sure that you are properly covered during the renovations.

How to Save Money on Home Insurance

1. Increase your deductible

A deductible is the amount of money you are willing to pay in the event you have an accident at home and need to make a claim. Increasing your deductible allows you to decrease the premium that needs to be paid.

Before following through with this option, it’s important to first review the numbers and make sure you can actually afford to pay a higher deductible if necessary.

Our team at MMI Insurance believes in complete transparency in the insurance-buying process, sharing as much information as we can for your home insurance quote in Alberta to ensure you understand your options.

2. Be more cautious

By taking additional steps to prevent potential accidents, you can indicate you are a lower-risk investment. Insurance providers typically take notice of these choices and may offer lower premiums for being more cautious.

Some options for accomplishing this include:

  • Installing security alarms
  • Placing smoke detectors
  • Installing carbon monoxide detectors
  • Having deadbolt locks
  • Taking active steps to reduce the risk of a break-in

We aren’t just here to sell you home insurance in Alberta, we are valued insurance advisors who will walk you through the process and educate you so you can make an informed decision.

3. Inquire about additional discounts

This option may sound pretty obvious, but it never hurts to consult your insurance provider about what deals they can offer. There are several different circumstances that may make you eligible to save on insurance. These can include but are not limited to things such as a new home discount, claims free discount or a mortgage free discount.

Our homeowner packages provide protection against financial disaster and insure both your home and its contents. With MMI Insurance, we’ll provide home insurance in Alberta that offers personalized protection whether you own a house, condo, mobile home, or another type of primary residence.

4. Make annual payments

Similar to paying off a credit card, a tried and true insurance trick involves paying your premiums in one yearly payment. By doing this, you will avoid paying additional financing or administration fees throughout the year.

In order to follow through with this option, it’s important to first determine whether or not you can afford to make a one-time payment that could be too large, depending on your coverage.

When you are looking for the best home insurance in Alberta, MMI Insurance always goes the extra mile to provide comprehensive customized home insurance packages for our clients.

5. Review your existing policy

Having a clear understanding of your specific home insurance needs will allow you to get the most out of your policy. Take time to consider the different types of extensions you will require, any potential natural impacts such as flooding, valuables that are held in your home, etc. The best way to save money while remaining protected, is by having an insurance policy that is specially catered for your home.

When selecting the home insurance in Alberta that’s best for you; we keep things simple with straightforward explanations about the types of coverage available so you have the right coverage for your needs.

6. Find a bundle that works for you

This is an option that often goes overlooked. In the case where both your home insurance and auto insurance policies are with the same provider, opting to have them bundled into one package is an easy way to save money.

Where to Find Home Insurance in Alberta

If you’re looking for home insurance in Alberta, or want to learn more about your available options, contact MMI Insurance today at 1-866-222-6996 to speak with one of our insurance experts.