Buying a Home: Insurance Premiums

Drayden Insurance Ltd. offers a wide variety of customized insurance plans to owners of homes and condos, as well as recreational and rental properties that accommodate the unique lifestyles of Edmonton residents and individuals throughout Alberta. If you’re a new home owner, or simply considering buying a home, you probably have many questions bouncing around in your head including how different components of the house could impact the cost of your home insurance, and even your eligibility for coverage.

There are a wide variety of concerns within a house that can affect your insurance premiums – like going to the doctor, you may look fine outside but inside you know it could use a little work. And going to the doctor as we all know, even with our provincial health plans, if something needs fixing there’s going to be cost involved. The worse shape the greater the cost, or in insurance, the greater the risk, the greater the cost.

What Affects Insurance Premiums?

To manage those risks, and their subsequent cost, here are some important questions to ask about the house before you buy that may affect the insurance premiums paid:

• When was it built? New homes are built based on current standards and bylaws, and most new builds come with some type of warranty, whereas older homes don’t and they may have been victim to unqualified handyperson efforts making for unseen risks. Because newer homes should cost less to repair or rebuild than older homes after damage occurs, many insurers offer discounts on new builds.
• How close is it to a fire station or fire hydrant? The closer your home is to a fire hall or fire hydrant, the quicker it could be saved in the event of a fire so the cost of your home insurance could be lower.
• When was the roof last replaced, and with what kind of material? Poorly maintained properties could result in a higher home insurance premium, while certain roofing materials (like concrete or slate tile, for example) could qualify you for an insurance discount. Talk to your broker to learn more.
• How is it heated? Oil furnaces, wood stoves, and pellet stoves are three of the riskiest ways to heat your home, and using them can impact the cost of your home insurance and even your eligibility for coverage. An electric or gas furnace could be safer to use and might help lower your premium. Ask how the heat source could impact your insurance coverage.
• How is it wired? Knob-and-tube or 60-amp electrical systems, often found in older homes, tend to be considered more risky than newer systems because they can overheat and increase your chances of an electrical fire. Consider looking for a home with an electrical system with at least 100 amps and modern wiring.
• What does the plumbing look like? Galvanized steel pipes can rust and corrode over time and may even release lead into your drinking water. Copper pipes and newer plastic pipes are more durable and less prone to corrosion and leakage, meaning they’re less likely to cause water damage. Before you buy a home, ask your broker how updated plumbing could impact your insurance.

Contact Drayden Insurance Ltd for Customized Insurance Plans

A home is a big investment, home insurance in Edmonton shouldn’t be. Contact Drayden Insurance Ltd. to learn how to save even more on home insurance, at 780-482-6300 today in Edmonton and how our team of insurance professionals can customize the perfect insurance coverage to fit your specific needs.