Factors that determine your premium - Cost of insurance - Insuring - Co-owner - Home insurance | Infoinsurance.ca


Cost of insurance

Do you live in a new condo downtown? Is your condo constructed of wood or brick? Is the building fire resistant? That’s just some of the information your insurer needs to determine your premium. When you purchase your home insurance, he’ll ask you a series of questions that will enable him to determine your premium. Take the time to answer them correctly.

The building

Your home insurer evaluates certain features of your condominium building, including age, location, construction material used.

Features taken into account by your home insurer

  • The construction material used to build your condo: wood, brick, aluminium or concrete
  • The building’s age
  • The location of the condo: country or city? In a residential, commercial, new or historic neighbourhood?
  • Your condo’s heating system (electricity, gas, oil), including a secondary source of heating, for example, a wood or gas stove
  • The cost of rebuilding your improvements, in the event of a total loss
  • The number of units in the building
  • The presence of a business in the building

What is the deductible?

The deductible is the amount that you accept to pay in the event of a loss.

The home insurance deductible usually varies between $300 and $1,000. Choose your deductible based on what you’d be able to pay in case of a loss.

Fire protection

Your insurer also evaluates the fire protection services in the neighbourhood where you live. If a fire were to break out in your building, how far is the nearest fire hydrant? How far is the fire station from your condo? Does the building have a sprinkler system?

Loss experience

Your home insurer will take into account how many and what kind of claims you’ve already made. He’ll also look at the crime (theft, vandalism) and fire rates in the sector where your condo is located.

Policy and coverage chosen

The level of coverage you choose determines your premium:

  • Type of policy chosen (Specified Perils or Comprehensive)
  • Endorsements (additional coverage) added your policy
  • The deductible you choose

Value of property to be insured

Your insurance premium also takes into account the coverage you’ve chosen.

Do you know how much all your personal property in the condo is worth? This information is important. If your condo were destroyed by a fire, how much money would you need to replace all your belongings? Having an inventory will help you list all your belongings and know how much coverage you need.

Credit information

Your credit information is also one of the factors used by most insurers.