Give Me Back My Five Bucks

Is it okay to go cheap on home insurance?

Note: this is a guest post

When looking for home insurance, everyone wants to find the best deal possible – that’s a given. However, some home insurance seekers sacrifice a little too much while trying to go cheap. There’s a big difference between getting cheap rates and getting cheap insurance.

Often, homeowners will jump on the  first cheap deal that they find, without really looking through all of the fine print, exclusions, etc. This could be a huge mistake and usually all it takes is a talk with a neighbor at dinner party or neighborhood barbeque to realize it.

Their neighbor goes on and on about how amazing their home insurance is and when they finally speak up and ask, “Well, how much do you pay for that?” they’re often very surprised at home much more their neighbor is getting for just a little more than they, themselves, are paying. Check out the HBF home insurance portal to get a quote for your own insurance needs.

Typically, this happens when homeowners try to tackle the homeowner’s insurance market all on their own and don’t enlist the help of a certified agent who knows the market better than their spouse. These agents, services dedicated solely to shopping the industry for you, or an insurance company that you already do business with can all help you find great discounts without sacrificing quality.

Tips for Obtaining Quality Home Insurance at Cheap Rates

  • DO THIS – Do a little online research, chat with co-workers, or consult with family/friends, to find an online home insurance website that is both reputable and user friendly. 
  • DON’T DO THIS – Jumping on the first cheap rate you find will almost certainly be a mistake.
  • DO THIS – Meet with a reputable, certified, home insurance agent whom you’ve thoroughly vetted or received a stellar recommendation for.
  • DON’T DO THIS – Be certain that you thoroughly understand your coverage and make sure your agent doesn’t cut corners on things like dwelling coverage, just to cut costs.
  • DO THIS – Thoroughly consider any policy’s deductibles and be sure that they make sense for you financially. You want a deductible that you’ll actually be able to afford.
  • DON’T DO THIS — Don’t let an agent, or a company, talk you into a policy that comes with a deductible you wouldn’t be able to afford should you need to make a claim. This is important, as you don’t want to break your bank account just to make a claim and be in a dire financial situation until it comes through.
  • DO THIS – Ask questions. When you sit down with an agent, make sure you’ve done your research regarding all possible discounts and inquire about each of them individually.
  • DON’T DO THIS – Don’t sit down with an agent unprepared. Not all agents are good agents, and if you’ve educated yourself, you’ll be able to tell if they’re just trying to make a sale.
  • DO THIS – Make certain that you’ve gone to your current auto insurance provider and have inquired with them about a discount, should you insure your home with them, as well. 
  • DON’T DO THIS – Even if your auto insurance company will extend a discount, make sure that you still fully shop the market and line their offer up with the rest.

Author: Krystal Yee

I’m a personal finance blogger and marketing professional based in Vancouver. I’m a former Toronto Star (Moneyville) columnist, author of The Beginner’s Guide to Saving and Investing, and co-founder of the Canadian Personal Finance Conference. When I’m not working, you can usually find me running, climbing, playing field hockey, or plotting my next adventure.


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