Just like you, all insurance policies are unique. Although this information can help you navigate your insurance questions, this is not insurance advice and some details may not pertain to your specific risk. If you have a question about your insurance policy or coverage, never hesitate to give us a call.
Homeowners Insurance
With home prices consistently rising, protecting your most valuable asset couldn’t be more important. At Cassidy & Young Insurance Brokers we are dedicated to ensuring you get the best prices without compromising on essential coverages.
What is homeowner insurance?
Home insurance policies not only protect the physical structure of your house and your personal belongings, but it also protects you and those you love. Unlike auto insurance, home insurance policies are not regulated by the government. This means that there is more flexibility in coverage offerings. Now, this doesn’t mean we would ever suggest compromising on coverages just to save money, but we understand that each policies needs to be customized to suit your specific needs.
Home insurance policies can be divided into roughly four categories. First you have your physical coverage—the home itself, its outbuildings, and contents. Secondly, you have your liability coverage which protects you personally for your actions and potential negligence. Thirdly, you have coverages like additional living expenses which aid you while you navigate the claims experience. Lastly, you have coverage options like water coverages, identity theft, and by-laws (to name a few) that are entirely optional but if applicable to your home, can really solidify your comprehensive homeowner coverage.
Climate Change
Canadians are no strangers to rising major environmental events. The rising frequency and severity of wildfires, tornados, floods, wind, snow/ hail and rainstorms exceeded $3.1 billion in damages in 2023 alone (Insurance Bureau of Canada, Jan 2024).
Rising Costs
Rising cost of insurance can be partially explained by these environmental catastrophic events. In addition to planetary changes like climate change, the global market has also had a profound impact on the cost of materials and litigation causing home insurance premiums to rise in order to compensate.
Rating Factors
Despite home insurance being generally necessary for all, its actually quite personal. Rating factors are very specific not only to the physical home itself, but also to the geographical area you have purchased in as well as you as a person. The list below details common rating factors that insurance companies look for when determining how much to charge for your insurance.
- Your insurance experience. How long have you had property insurance for? Has it been continuous?
- Have you historically paid your insurance policies? Have you ever been cancelled for non-payment?
- What is your claims history like?
- How is your credit score?
- How old is your house?
- What is the square footage of your home?
- Have you made any updates to your electrical, plumbing, heating or roofing?
- What types of materials were used for your electrical, plumbing, heating and roofing work?
- What general materials were used in your home? Standard or upgraded?
Of course, not all of these factors have an equal impact on your rate, but its important to understand what happens behind the scenes when insurance companies are determining what premium to charge you.
Ways to Save
After reading all of the factors that go into determining your rate, it may feel like there is so much that is out of your control. It makes sense and we want you to know that there are ways you can gain back some control over premiums. Do you have preventative measures in your home? Burglar alarms? Sump pumps? Sewer back-up valves? Fire extinguishers? These are all ways that you can save money on your home insurance. Of course, it always helps to bundle your home and auto insurance together, so that you have access to multi-line or multi-policy discounts.