Even if you are a client with no claims, many factors beyond your control are pushing your premiums up. These factors are both local and global.
- Aging municipal infrastructure – over-capacity and aged municipal infrastructure along with a higher demand for water makes sewer backups more frequent, resulting in more water damage-related claims.
- Finished basements with electronics – because of higher-priced building materials, finished basements cost more to repair if there is a sewer backup or other damage. Plus, most finished basements now contain expensive valuables like electronics and furniture.
- Environmentally-friendly – newer homes with features like solar panels, energy efficient windows and doors, and high-efficiency appliances are more expensive to repair or replace.
- Claims – if you have had to make a claim, you may lose out on a claims-free status discount. Making multiple claims could also lead to a surcharge on your premium or affect your insurability.
- Frequency of extreme weather events and catastrophes– wildfires, floods, storms, and other events are becoming more frequent and cause expensive damages, resulting in more claims and rising insurance costs. Insurers paid out $1.9 billion in 2018 due to severe weather in Canada.
- Emergency services, skilled trades, and personal belongings are more expensive – as with any goods or services, inflation means higher prices for things which means paying for claims is more expensive, too.
- On your vehicle – distracted driving, rising medical costs, fraudulent claims and expensive autonomous features such as cameras, computers, and sensors are all pushing rates up and have some insurers exiting this business altogether.
How can we help?
- Ensure you are maximizing any discounts available to you;
- Manage premiums with higher deductibles and other strategies;
- Replace your current insurer as painlessly as possible – some insurers such as AIG Canada, Guarantee Company of North America (GCNA) and Royal & Sun Alliance (RSA) are either exiting the home insurance market or becoming very selective in the business they will support.