Shopping for a home can be a fun experience, but with the numerous associated expenses it can be stressful as well. One item that homebuyers rarely consider is the cost to insure the potential new home.
“Things like having to replace some flooring or kitchen cabinets may sway a homebuyer’s decision, but the cost of insuring the home is rarely considered,” states insurance expert Wayne Ross from Aviva Canada.
“What many homebuyers don’t realize is that by considering a couple of additional factors in their buying decision they can easily save a few hundred dollars on their insurance costs every year.”
Ross suggests looking into a few key factors before making the big purchase:
- Location: If you live in a neighbourhood with a low crime rate you’ll pay a lower premium.
- Proximity to fire protection: Homeowners who live close to a fire hydrant or fire station will pay lower premiums as a result of decreased fire risk.
- Heating: Do you use oil, gas or electric? If you heat with oil, or own a wood stove, you’ll likely also burn more money on your insurance premium.
- Wiring: Do you have breakers or fuses? Old wiring? Low electricity flow coming into the house? All affect your insurance costs and eligibility for insurance. Your insurer might require upgrades.
- Roof: If your roof has not been updated in the last 20 years, you might not qualify for insurance until it is re-shingled.
- Other factors like the existence of a monitored security and fire alarm system or a swimming pool will also factor into your insurance costs.
- Before you make the final decision on the purchase of a new home, talk to your insurance broker or company to determine insurance costs. Additional information can be found at avivacanada.com.