How the Age of A Home Can Impact Your Insurance
Does it cost more to insure an old home or a new home? In many cases, home insurance premiums for newer homes can be lower compared to older homes.
Newer homes often feature modern construction materials and building methods that are less prone to damage or system failure, reducing risk for insurers. A new home is also more likely to be built to current building codes, which can further lower insurance risk.
What other factors influence home insurance?
Beyond age, several factors affect home insurance premiums, including location, size, construction type, and specific features of the home.
While newer homes often qualify for lower rates, older homes may have higher replacement costs due to unique architectural features, materials, or craftsmanship, which can increase insurance premiums.
What happens to my home insurance rate if I renovate?
If your home has been upgraded with a new roof, updated electrical system, new water tank, or modern furnace, these improvements may help lower your home insurance rate.
Insurance companies view these upgrades as reducing the likelihood of fire, water damage, or mechanical failure, which can result in fewer claims.
New roofing materials are generally more resistant to weather damage, while updated electrical, plumbing, and heating systems are less likely to cause fires or leaks.
As a result, insurers may offer discounts or lower premiums for homes with these improvements.
Always inform your insurance provider about renovations so your home insurance policy accurately reflects your home and any eligible discounts are applied.
How can I lower the cost of my home insurance?
There are several strategies that may help reduce the cost of your home insurance:
Shop around: Speak with a home insurance expert at Western Financial Group — they can compare options and find coverage that fits your needs.
Switch insurance companies: You may save up to 30% by switching providers, depending on your situation.
Increase your deductible: Choosing a higher deductible can reduce premiums, as long as the out-of-pocket cost is manageable.
Bundle policies: Many insurers offer discounts when you bundle home insurance with auto or umbrella coverage.
Improve home security: Installing security systems, smoke detectors, deadbolts, and alarms can lower risk and reduce premiums.
Maintain good credit: Credit scores are often a rating factor, so good credit may help lower insurance costs.
Avoid small claims: Paying for minor repairs yourself can help prevent premium increases.
Update your home: Replacing outdated systems like roofs, wiring, or plumbing can reduce insurance risk.
Ask about discounts: You may qualify for discounts as a non-smoker, homeowner association member, or if your home is in a gated community.
Review coverage regularly: Ensure your coverage still matches your home’s value and your personal situation.
Stay with the same insurer: Some insurers offer loyalty discounts for long-term customers.
By applying these strategies, you can often lower the cost of your home insurance while still maintaining appropriate coverage.
Learn more from the Government of Canada about home insurance basics .
You can also read more about how your credit score affects your home insurance .
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Western Coast Insurance Services Ltd. is a wholly owned division of Western Financial Group Ltd. Insurance products are underwritten by certain licensed insurance companies and are only available throughout British Columbia, Canada.