Insurance Costs

We've renewed our insurance costs for 2010. Our provider is Peace Hills Insurance and they give us very competitive rates, excellent service and quick responses on any claims we file.

We watch our costs pretty tightly and noticed there was an increase in the premium this year. Our great broker explained that insurance companies generally increase the premium annually on a flat rate inflation percentage. Even in years where the properties aren't appreciating.

The spread between some companies is between 4% and 12% in the same year. So we asked if we could adjust our rate and were given the ok.

When you're dealing with a huge portfolio it could mean hundreds to thousands of dollars a year in savings. Of course you must ensure your property is never under-insured or over-insured.

It Only Stands To Reason

If house prices go up then insurance prices will go up. As the Japanese say "Shoganai" which translates to "It can't be helped" or "There is no ginger" ( I am referring to the former not the latter)

I guarantee you that you would be much more upset if something happened to your home and your insurance company only covered to last year's values.

Taxes and insurance costs increase when your property value does. Think about the $82,500 you made last year and weigh it out.

A helpful tip:
"Karen Hopkins-Lee, chief underwriter at Canadian Direct Insurance, said homeowners can reduce their premiums by raising their deductibles -- from $200 to $500, for example -- and by updating roofs, plumbing and hot-water tanks." Full Article