Have you ever wondered why your home insurance premium is different from your friends, neighbours or relatives?
Here's an article from
Intact Insurance explaining the variables and some factors considered when calculating your premium:
- Where you live - Some locations have a higher risk of crime, burglary, sewer back-up and weather-related events, resulting in a higher premium.
- How close you are to fire-fighting support - Urban areas are closer to fire-fighting support, generally resulting in a lower premium.
- How much protection you require - If you need or want more insurance protection for your home and property, then your premium will be higher than someone who needs or wants less protection.
- The age of your home and the home’s condition - Property rates are generally lower for newer homes because the plumbing, wiring and roofs generally have fewer problems, which means fewer claims.
- If you live or work in the home - Empty or unoccupied properties are more prone to vandalism and theft. Also, running a business or having tenants results in a higher premium due to additional items in the home.
- How many claims you have made - The greater number of years claim free, the greater the reduction in your premiums.
- How long you have lived at your current address - Statistics show that customers who have lived in the same residence for longer periods of time make fewer claims. This can contribute to a lower premium.
- Maturity - As you age, your premium amount will typically decrease.
- Loss prevention - Investing in devices to protect against burglary, fire and water damage can lower your insurance costs either directly via a discount or by preventing and minimizing losses, which results in fewer claims.
- If you own your home outright - If you own your home completely without any mortgages, you’ll have more money to maintain your home, resulting in fewer claims. This can be a factor resulting in a lower premium.
- How your home is heated - Homes that use oil as their primary heat source and wood for secondary heat source tend to have more fire claims and will, therefore, increase your insurance premium.
- If your home is built for or used by multiple families - If your home has more than one self-contained living unit, or you share your property with unrelated individuals, it may be considered a multi-family dwelling. In these instances, there are more items that need to be covered by insurance and more opportunities for larger claims.
If you have any questions about your home insurance or your home insurance premium, please feel free to call our office at 844-390-8228 or email
chris@gibbinsurance.ca