Cost of insurance
Do you live in a new building in town or in a heritage home in the country? Is the building constructed of wood or brick? 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.
Your home insurer evaluates
certain features of your apartment, including age, location and construction material used.
Features taken into account by your home insurer
The construction material used to build your apartment: wood, brick, aluminium siding or concrete
The building’s age and size
The location of the building: country or city? In a residential, commercial, new or historic neighbourhood?
Your apartment’s heating system (electricity, gas, oil), including a secondary source of heating, for example, a wood or gas stove
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.
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 home?
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 apartment is located.
Policy and coverage chosen
The level of coverage you choose determines your premium:
(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 the personal property in your apartment is worth? This information is important. If your home 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.
Your credit information is also one of the factors used by most insurers.