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Buying a new home is an exciting, as well as expensive, endeavor. Here are some tips that will help you save on the home and life insurance you’ll need in order to protect your new purchase.
Ask about discounts when getting home insurance
Just like auto insurance, you may be eligible for discounts that will lower your home insurance premiums. Common discounts include a:
• Multi-line discount: Most companies offer this discount as an incentive to get your auto insurance business too.
• New home discount: Some insurance companies will offer a discount if your home is less than 10 years old.
• Alarm discount: You could be eligible if your home is monitored by a centrally monitored approved security system.
• Claims-free discount: Offered if you have you not had a home insurance claim in the last 6 years.
• Mortgage-free discount: Available if you have paid off your mortgage and now own your home outright.
While the availability of discounts will vary, asking about them could save you a significant amount of money.
Increase your home insurance deductibles
The higher your deductibles, the lower your insurance premium so raise them as much as you can. Keep it affordable though, because this is how much you’ll have to cover if you need to submit a claim.
Explore your life insurance options
If you’re buying a home, chances are someone will suggest you buy life insurance—usually mortgage life insurance or term life insurance. Because you buy mortgage life insurance directly from your mortgage lender, it's convenient; but you pay a premium for that convenience.
Take a look at these comparisons for $250,000 coverage:
Don’t believe the myths about insurance premiums
Insurance premiums across insurance companies ARE NOT the same, and the quote you get from one company will not be the same as one you would get from another. Each insurer’s rates are so unique to them it’s safe to say no two are alike.
Compare apples-to-apples while shopping
When getting insurance quotes, make sure you’re comparing similar products. For example, with home insurance, include the same deductibles, coverage and limitations when getting your quotes. As for life insurance, you’ll want to know if you’re being quoted standard or preferred rates. Standard rates are the rates the majority of Canadians qualify for, while only about one third of the population is eligible for preferred rates.
Shop around
Get insurance quotes instantly online. Through kanetix.ca's online quote comparison service you can get quotes from competing insurers for both your home insurance and life insurance - so the shopping is done for you!
*Based on the information available in March 2008 from the websites of two major Canadian banks.
**Best rates available for joint coverage (male and female non-smokers) in March 2008, using the kanetix’s insurance shopping tool. Original rates shown in annual premiums. For comparison purposes, the annual rates are shown as their monthly equivalent.
Rates provided by 
| Mortgages Type | Rate |
|---|---|
| 1-yr Closed | 3.54% |
| 3-yr Closed | 4.15% |
| 5-yr Closed | 4.97% |
| GICs Type | Rate |
|---|---|
| 1-yr Annual | 0.95% |
| 3-yr Annual | 2.12% |
| 5-yr Annual | 2.77% |
| RRSP Type | Rate |
|---|---|
| 1-yr | 0.94% |
| 3-yr | 2.09% |
| 5-yr | 2.75% |
Quotes and other information may be supplied by independent providers. All information is provided on an “AS IS” basis, for informational purposes only, and is not intended for trading purposes, advice or planning. It would be unreasonable for you to make any trade without first consulting an authorized financial advisor and verifying the accuracy of all information. Yahoo! and its independent providers do not warrant the accuracy, completeness or timeliness of any information provided herein, and expressly disclaim any and all liability for any decisions made in reliance thereon. The information is not an endorsement or recommendation by Yahoo! of any trade, even where the information relates to Yahoo!. Notwithstanding anything herein, Yahoo! does not hold itself out as an advisor or planner of financial services of any kind. By accessing the Yahoo! site, you agree not to redistribute the information found herein, and to be otherwise bound by the Yahoo! Terms of Service.