Buying a new home is an exciting, as well as expensive, endeavor. Here are some tips that will help you save on the home and life insurance you’ll need in order to protect your new purchase.

Ask about discounts when getting home insurance

Just like auto insurance, you may be eligible for discounts that will lower your home insurance premiums. Common discounts include a:

• Multi-line discount: Most companies offer this discount as an incentive to get your auto insurance business too.
• New home discount: Some insurance companies will offer a discount if your home is less than 10 years old.
• Alarm discount: You could be eligible if your home is monitored by a centrally monitored approved security system.
• Claims-free discount: Offered if you have you not had a home insurance claim in the last 6 years.
• Mortgage-free discount: Available if you have paid off your mortgage and now own your home outright.

While the availability of discounts will vary, asking about them could save you a significant amount of money.

Increase your home insurance deductibles

The higher your deductibles, the lower your insurance premium so raise them as much as you can. Keep it affordable though, because this is how much you’ll have to cover if you need to submit a claim.

Explore your life insurance options

If you’re buying a home, chances are someone will suggest you buy life insurance—usually mortgage life insurance or term life insurance. Because you buy mortgage life insurance directly from your mortgage lender, it's convenient; but you pay a premium for that convenience.

Take a look at these comparisons for $250,000 coverage:

Don’t believe the myths about insurance premiums

Insurance premiums across insurance companies ARE NOT the same, and the quote you get from one company will not be the same as one you would get from another. Each insurer’s rates are so unique to them it’s safe to say no two are alike.

Compare apples-to-apples while shopping

When getting insurance quotes, make sure you’re comparing similar products. For example, with home insurance, include the same deductibles, coverage and limitations when getting your quotes. As for life insurance, you’ll want to know if you’re being quoted standard or preferred rates. Standard rates are the rates the majority of Canadians qualify for, while only about one third of the population is eligible for preferred rates.

Shop around

Get insurance quotes instantly online. Through kanetix.ca's online quote comparison service you can get quotes from competing insurers for both your home insurance and life insurance - so the shopping is done for you! 

*Based on the information available in March 2008 from the websites of two major Canadian banks.
**Best rates available for joint coverage (male and female non-smokers) in March 2008, using the kanetix’s insurance shopping tool. Original rates shown in annual premiums. For comparison purposes, the annual rates are shown as their monthly equivalent.