Did Your Home Insurance Increase? Make Sure You Know Why.

Conrad Blog

When you’re receiving your insurance policy renewals, it’s never a good feeling when you see that your Home Insurance premium has increased. While in some cases you may understand why your premium could have increased, but other times, you may be unsure. In times like this, it’s important to know a few factors that can adjust what you pay and how much coverage you may need. Below are the five most common factors that can affect the price of your Home Insurance policy. 

Modern Homes And High-End Features 

Did you know that more modern homes may have higher premiums? Often, when more recent or updated homes are designed, they use materials and install more extravagant features. And with more extravagant features, usually the repairs or replacements are more costly if any claims are filed. Some examples are how smart home electronics, eco-friendly appliances, and even one-of-a-kind cabinetry are becoming more popular among homeowners. As well, when homes have entertainment features like pools or hot tubs, Home Insurance premiums could increase because there is an additional liability added to your property.

However, it should as well be noted that non-modern homes can have high premiums too. Specifically, if a home appears to be a higher risk because of its age or outdated features. What is meant by this is how older homes could have older finishes. For example, a home built in the 1960s will likely have aluminium wiring in comparison to homes that are made today with copper wiring. When comparing the two houses, the older home with aluminium wiring will pose as a higher risk because that type of wiring is dangerous and is a known fire hazard. So if the homeowner chooses not to update their wiring to the current standard, they may be denied the ability to purchase a homeowners policy or have a higher premium until they update the wiring. 

Finished Basements 

Having a finished basement could as well increase your premium if it was previously unused and you recently completed a renovation. This stems upon the fact that a finished basement isn’t only another space which requires more funds to repair if it is damaged, but how basements are known to suffer from water damage.

Municipal Infrastructure 

Speaking of basement floods and sewer backups, aging municipal infrastructure can also be a factor when it comes to the price of your Home Insurance. This is due to older cities having outdated infrastructure which can lead to a greater risk of sewer backup — making the likelihood of a homeowner filing a claim higher. 

Neighbourhood Trends 

Community trends are constantly changing as the demographics of homeowners change. So with this being said, many insurance companies take into consideration what is happening in your neighbourhood when providing you a Home Insurance policy. Specifically, insurance providers will look at the rate of claims and what those claims are related to. This can be connected to extreme weather such as floods or even risks such as crime. So if you live in an area where the home burglary rate is high, you may see a higher premium on your insurance policy as you could be more likely to submit a claim related to burglary. 

Past Claims 

The final factor that can significantly affect your premium is your past claims history. The way that past claims can affect premiums is because when you are claim-free, you often are provided with a discount to reward you. But, if you file a claim, it can be removed, immediately increasing your premium. 

Whether or not you noticed that your homeowner’s insurance policy increased this year, we understand that you’re always looking for the best coverage for the best price. That’s why we’re always working with the largest insurance companies in Canada, so we can offer you the best.

If you’re interested in learning more about your policy options, contact us today! We’ll be happy to not only talk with you about your current coverage but let you know about what your options are.