Lowering Insurance premiums

Some notes about reducing insurance premium for home and autos...

Although we have not yet got a house nor a car, as we're still shopping around, in the meantime, we're looking at insurance, because this is mandatory in Canada for your house and your car. 

Let's start with the hard part: as newcomers to Canada, we do not have any history for our driving and it's quite hard to get a "claim letter" (it's to certify your claims history back in your home country) from our previous insurers. Not saying it is impossible to get those, but how dearly would we have wanted to know this requirement before leaving HK. Well, that's half of the puzzle.

Now, the particulars of driving (HK Certificate of Driving Licence Particulars) ... this is a certificate you would also need to present to any prospective insurance company (with that claim letter aforementioned) and it would help them adjust your premiums (presumably favorably). Provided you did not make many or no claims back home, the insurance companies would be looking at your application in a kinder light.

As for home insurance, thankfully, there's no such need to have any claim letter nor other certs... In fact, things that will render your premiums eligible for a potential discount. Below are some commonly discussed topics but it's in no way the all an all but what we thought are the most relevant (depending on where you stay, the location brings its welcome party, cue hail, wind, flood (water damage), earthquakes ...etc):

• Roofing and siding used

Your roof will be subjected to rain, snow, hail, strong winds and falling debris and what not. In Alberta, the land of hail, you should consider hail resistant shingles for your roof. Preferably, look at grade 4 or better.

As for your siding, although insulated vinyl is better than plain vinyl, fiber cement is the one that insurers prefer.

• Auto water shut off valves

This is a system that involve a sensor(s) to detect leaks around the home, and will shut the water valve to prevent further damage. Just having sensors won't satisfy the insurers and the keyword(s) here is "auto water shut off".

• Raise your deductible

This is very common for home and car insurance policies. The more you pay from your own pocket initially, the happier the insurer is, as you're not making any claims to them yet. 

• Home security

In this scenario, doggies, trained wolves, guardian robots, spying parrots, fierce hamsters and regular wifi cameras won't do. What is required is "Professional" home monitoring, aka a third party that can come over to your home when your security cams have triggered the siren.

• Hydrant and firestations/firehalls proximity

Living close to a fire hydrant and the fire station/hall (within 15 ins or 5km) , is what is best. Granted it's not great to hear the firetrucks breeze by with blazing sirens, but hey, the insurer will console you with a lower premium - that's a silver lining there (but honestly, better stay a bit further away though).

• Valuables/fine arts/collectibles

Anything you are insuring extra to your house will add to your premium. So, before adding the Seiko and Rolex watches and the Uniqlo/Armani clothes in there, it's better to reconsider if you really want them covered. 

• Bundling together

Here, we must mention a caveat: as newcomers to Canada, our auto insurance is high. Bundling does not help but we do acknowledge for most other people who are not new to Canada, bundling home and auto insurances together gets a discount as insurers want to tie you in and cement it all well together.