Shopping for a home can be a fun experience, but it can be stressful as well. One thing homebuyers rarely consider is the cost of insuring a potential new home. Many homebuyers don’t realize 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.

It’s important to keep in mind 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 OTIP Broker to determine insurance costs and how much you might be able to save. Call OTIP at 1-800-267-6847 and speak to one of our licensed brokers.