Although home insurance is not mandated by law in Canada, it is a quality investment that saves one of your biggest investments in life – your home. Most lenders insist borrowers buy home insurance while approving a mortgage. No matter your situation, the government also recommends buying home insurance to protect your finances in case of any damage to the house or its belongings.
However, the one-size-fits-all approach doesn’t work in getting home insurance. The rates vary significantly according to the type and extent of coverage. So, it is important to compare quotes from different insurance companies to save maximum on home insurance.
Fortunately, this process is simple and quick when you work with the right insurance provider. With Surex, you can compare quotes from more than ten reputed insurance companies in Canada. Read to learn how to compare home insurance quotes with a brokerage, like Surex:
How to compare home insurance quotes easily with Surex
Visit the official website of Surex and select home insurance to start with. Next, select the type of house property, your zip code, and your location. After that, follow these steps to get personalized home insurance quotes and compare them accordingly.
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Share your details
The first step entails sharing some personal information and details of your property. You may need to provide the following details at this early stage:
- Area of your house
- Age of your house
- Building materials used
- Number of occupants
- Previous insurance details
- Your past claim history
To get the best rates and discounts, it is advised to share the following details about your home with the insurance provider.
- Distance from a fire station
- Monitored fire alarm
- Monitored burglar alarm
- Number of fire extinguishers and sprinkler systems
Additionally, give your consent to bundle home insurance with other policies such as a car to save up to 15% on home insurance.
2. Select the type of coverage
Next, select the type of coverage according to your needs. Broadly, home insurance is categorized into two types based on the extent of coverage.
Broad home insurance: This coverage is relatively cheaper than comprehensive home insurance but covers only named perils like explosion, vandalism, theft, fire, water, or hail.
Comprehensive home insurance: It is the most inclusive home insurance in Canada. Other than specifically mentioned perils in the policy, it covers almost everything.
3. Get quotes
Hit the submit button and wait while Surex brings you personalized home insurance quotes from different insurance companies. You will be redirected to a new page where you can filter the quotes according to your preference. For instance, you can sort it from lower to higher.
4. Compare
This stage is a little tricky for first-time buyers, as there will be 10+ quotes from different companies. While you can easily compare the rates and extent of coverage without assistance, you will need expert advice to choose the best option.
So, make the right decision, and work with an insurance agent. Surex has a team of highly trained and experienced insurance agents who are happy to help. For existing customers, the task is as easy as online shopping.
Factors affecting your home insurance rates
Your home insurance rate is influenced by many factors. So, while comparing home insurance quotes, keep the risk factor you or your property is exposed to in mind. Irrespective of the insurance provider, the greater the risk, the more you have to pay for premiums. Home insurance providers calculate the risk based on your inputs. So, here are some factors that affect your home insurance rates.
Type of property
The cost of covering an independent house is different from an apartment or a condo. A semi-detached house or an independent property is costly to maintain. For instance, the owner is solely responsible for the care and maintenance of the roof, which is a costly affair. Whereas the roofs of condos are a part of a larger complex and insured by another policy. So, the type of property you live in plays a significant role in determining your premiums.
The cost of replacement
Another critical factor is the value of your house. It is an often misunderstood term in a home insurance policy. In this segment, you have two options to choose from:
Replacement Cost Value (RCV) is the amount you need to rebuild your house at today’s current value. Irrespective of the cost, it covers the total cost of rebuilding or restoring your house to pre-damage condition.
Actual Cash Value (ACV) is the current market value of your house after subtracting the depreciation value. For instance, if a new T.V today costs $600, and your damaged T.V was assessed to have a depreciation value of $300, you would receive $300 to replace the T.V.
Although the final decision is yours, home insurance based on the home’s rebuilding cost is usually lower.
Your credit score
A person with a low credit score is considered risky when calculating the cost of premiums. Insurance providers link low credit scores with increased chances of claims. So, a good credit score may help you decrease your home insurance premium, whereas the opposite is also true.
Location of your home
The neighbourhood where you live also influences your premiums. High-crime rates, flood-prone, or earthquake-prone areas fetch higher home insurance rates. Similarly, the distance of your house from a fire station or fire hydrant also affects your premiums. The closer your house is to a fire station, the lesser you pay.
Building material and age
As mentioned earlier, your home insurance rates depend on several variables. So, your premiums are likely to increase, if:
- The house is old
- You have old plumbing and electrical fittings
- The roof is old or not maintained
- Failing HVAC system
- Water damage to the house
Additionally, some other factors that also affect your premiums are:
- Too many previous claims increase the rate
- Having specific breed of pets
- Covering pool and other ancillaries
- Using house for commercial purposes
How to compare home insurance quotes with a brokerage — Endnote
Perhaps home insurance is vital to protect your home and finances. Nobody loves to pay for it. So, every homeowner wants to save that extra dollar while getting sufficient coverage for their property.
The best thumb rule is to not settle with the first product that you find. Instead, team up with a reliable insurance provider like Surex to compare different quotes in one place. This way, you increase the chances of finding the right coverage at the right price.