Before you buy home insurance, consider these potentially cost-saving suggestions from the Financial Services Commission of Ontario (FSCO), the agency responsible for regulating insurance in the province:
• Shop around. Get quotes from various insurance agents, brokers and direct writers. When comparing quotes, keep in mind that the range of coverage, deductibles, limitations and exclusions may differ slightly from one insurance policy to the next. There are four main types of homeowner insurance policies:
• The “comprehensive” policy, which covers both the building and its contents for risks that are not specifically excluded in the policy.
• The “broad” policy, which provides “all risks” coverage on the building, plus “named perils” coverage on its contents.
• The “named perils” policy, which covers only those perils specifically included in the policy, such as fire.
• The “no-frills” policy, which provides barebones coverage for properties that don’t meet normal underwriting standards.
• Increase the deductible. Typically, homeowners’ insurance policies carry a $500 deductible – the amount you agree to pay towards the damages claim. But you may be able to reduce your premium by increasing the deductible from $500 to $1,000.
• Bundle your policy. Consider buying homeowners’ and automobile insurance coverage from the same company. You may be eligible for a discount.
• Improve security. Install a smoke detector, fire extinguisher, a monitored burglar alarm system or deadbolt locks. Ask your insurance representative if these measures will reduce your premium.
• Seek out discounts. Ask if you qualify for program savings, such as a loyalty discount (many years with the same insurance company) or discounts for retirees, non-smokers, or for affinity to recognized organizations.
• Patience. Don’t switch insurance companies midway through the policy. Wait until renewal time to avoid a cancellation penalty.
• Review the coverage annually. Items that appreciate in value, such as jewelry, may require additional coverage. Likewise, items that depreciate in value, such as computers, may no longer require extra insurance. Your coverage should accurately reflect your home’s current value and condition, including major improvements or purchases.
More information on insurance is available online at www.fsco.gov.on.ca.
New Homes & Condos Magazine is an excellent source of housing information for those looking for information on new homes in Ontario, Canada. We offer the most up-to-date information on new communities across the Greater Toronto Area.
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Contact the Jeffrey Team for more information – 416-388-1960