How to Lower Home Insurance Premiums Without Coverage Regrets
TL;DR How to lower home insurance premiums
Strategies for lowering home insurance premiums include:
- Smart shopping strategies, such as comparing quotes and working with a broker
- Homeownership strategies, such as upgrading your home to be weather-resilient
- Personal strategies, such as building your credit and quitting smoking
Home insurance pricing is based on risk. To lower your home insurance rates, you must lower the amount of risk you’re paying your insurance company to cover.
Home insurance premiums in Ontario increased by over 7% in 2025 and by nearly 85% in the past decade, experts say. The primary factor driving rates up? Climate risk.
Severe weather-related insurance losses in Canada exceeded $2 billion in 2025 and $9 billion in 2024. In Ontario, ice storms and flooding have cost homeowners millions of dollars in damage—and it’s up to insurance companies to foot the growing bill.
If your home insurance premium is higher than in the past (or higher than you expected as a first-time homeowner), look to local weather patterns for the cause.
9 practical ways to lower your home insurance costs
Saving on the cost of home insurance involves proactive homeownership and policy management. But it doesn’t have to be time-consuming or painful to lower your premiums; the tips below combine serious investments with quick fixes that can add up to major savings.
Tip #1: Compare quotes from multiple providers
Why it works: Property insurance pricing isn’t standardized. Insurers use competitive rates to grow their market share. Comparing multiple home insurance quotes increases your odds of finding the best price for the coverage you need.
Insurance companies use proprietary underwriting algorithms to set the price of home insurance based on your profile. These algorithms aren’t public, so the only way to find the carrier with the best pricing match for you is to compare multiple rates.
As a general rule of thumb, it’s best to compare quotes from at least three different home insurance companies. You can choose which companies to compare based on advice from family, friends, and neighbors; do online research to find carriers with good reputations; or work with a licensed broker that can identify the best prospects for a homeowner with your risk profile.
Tip #2: If you have a car, bundle your insurance
Why it works: Buying multiple insurance policies from the same company cuts down on customer acquisition costs for that insurer. They’ll pass on a portion of the savings to you as a loyalty discount.
The biggest discounts available for home insurance are usually awarded to customers who bundle home and auto insurance protection from the same provider. Home insurance bundling discounts range from 5–10% to as much as 35% off your total premium (and that’s not counting the separate discount you’ll receive on your car insurance bill).
If you have a car, there’s rarely a good reason to insure your car and home with two different companies.
Tip #3: Increase your deductible (with caution)
Why it works: A higher deductible means your insurance company’s financial responsibility for your home is lower, so they’ll charge you less for coverage.
The policy deductible assigned to your home insurance is the amount you pay out of pocket in the event of a claim. It’s usually a dollar amount, often between $1,000 and $5,000. You pay your deductible, the insurer pays the rest.
Setting your deductible at a higher amount could reduce your premium, but be cautious with this strategy. Remember that to get an insurance payout in the event of a covered loss, you must pay your deductible. If you can’t pay, you can’t make a claim. Be realistic about the deductible you can afford.
“What’s the highest deductible I can afford?” is a great question to bring to an insurance advisor. They can review your overall financial picture and current premiums to help you find the right balance between prudent coverage and maximum savings.
Tip #4: Invest in climate-resilient home upgrades
Why it works: Climate crisis is a major driver of high home insurance rates in Canada right now. Building for climate resilience lowers your risk and makes you an attractive customer for insurance companies.
Historic flooding and ice storm activity in recent years have cost insurance companies in Ontario billions of dollars in water damage and other property claims. As the climate crisis advances, many insurers are offering discounted rates to policyholders who make upgrades to their home’s structure that increase the property’s resilience to severe weather and natural disasters.
Possible upgrades that could earn you a home insurance discount include:
- A backwater valve to prevent sewage backup during a flood
- An alarm for your sump pump system
- A leak detection system
- Extended downspouts to direct water away from your home
- Landscaping to prevent water entry to your home’s structure
- Storm shutters, rain screens, and strapping for your roof and other vulnerable spots
Not sure which upgrades you should explore to increase your home’s climate resilience? Check out the links below:
- Resiliency measures to protect your home (Natural Resources Canada)
- Three steps to cost-effective home flood protection (Home Flood Protection Program)
- Flood resilient residential retrofits handbook (Clean Foundation)
- Homeowner guides (Institute for Catastrophic Loss Reduction)
- Climate ready home guide (City of Edmonton)
Tip #5: Install a centrally-monitored alarm system
Why it works: Monitored alarms allow first responders to reach your home more quickly in the event of a fire or break-in, meaning you’re likely to have less damage to cover.
Insurance companies like it when your home has smoke detectors, fire alarms, and a home security system. They love it when those alarm systems are connected to a central monitoring hub that can quickly dispatch law enforcement or firefighters to your home to prevent further loss.
The typical discount for this type of system is 5–10% per monitored alarm. If you have both monitored fire and burglar alarms, you could be eligible for up to 20% off your homeowners insurance. Sprinkler systems may also be eligible for discounts.
Tip #6: Ask about all available discounts
Why it works: Home insurance companies don’t advertise their discounts clearly. Asking an advisor gets you accurate insider knowledge.
When you apply for home insurance quotes, certain discounts may be automatically applied to your coverage—for example, a bundling discount if you’re buying home and auto insurance together, or an age-based discount if you’re over 55.
But home insurance companies often offer far more discounts than the ones advertised on their websites, and it’s easy to miss out on opportunities if you don’t ask.
A licensed insurance advisor will be able to help you discover which discounts a given insurer offers and whether you’re eligible for the cut. They can also help you compare discount opportunities between insurers to maximize your savings.
Tip #7: Improve your credit profile
Why it works: Insurance companies believe that poor credit is a predictor of future claims, and they may reward good credit with lower rates.
In Ontario, home insurance companies are authorized to conduct a soft credit check when issuing quotes and to offer discounts based on customers’ credit history. While the discount for good credit isn’t always disclosed, many insurers will reduce your premium by 25–35% if you meet their credit target.
Of course, those credit targets aren’t made public, so we can’t tell you an exact number to shoot for. But good credit maintenance could help you win (or keep) a credit-based insurance discount:
- Pay your full credit balance by the due date
- Aim to use 30% or less of your available credit
- Limit or space out actions that result in a hard credit check, like applying for a card or loan
- Keep old accounts open even if you’re not using them
When insurance companies ask your permission to conduct a credit check during your application, you have the right to deny the credit pull; however, keep two things in mind:
- Because it’s only a soft hit, this credit check won’t affect your score or future credit.
- If you decline the credit check, you’ll miss out on the opportunity to get a discount and may see a higher rate as a result.
Tip #8: Quit smoking
Why it works: Smoking at home raises the risk of a house fire; quitting removes that extra risk.
If you’ve been trying to quit smoking and needed a little extra push, this could be it: home insurance companies charge non-smokers lower premiums for the same insurance coverage.
To qualify for a lower rate, you’ll typically have to guarantee to your insurer that all members of your household have been smoke-free for an extended period of time (often 12 months). If you’re tempted to lie to your insurer about your smoking status, don’t; this is considered fraud and could void your policy and even carry legal consequences.
Tip #9: Reassess your policy annually
Why it works: The home insurance industry is constantly changing. So are your family’s needs.
When your renewal notice rolls around each year, don’t just pay your bill and move on. Take the opportunity to review your policy and the price you’re paying and consider whether it’s time for a change. (This is also a great time to get new quotes, just in case.)
Here’s what could happen if you do a quick policy review each year:
- You might realize that you’re paying for a coverage add-on that you don’t really need
- You might find that you’re eligible for a discount that wasn’t applied to your policy last year
- You might find lower rates from a competitor
Of course, it’s possible that the reverse could happen—you might realize you’re underinsured or that you’ve lost a discount. And it’s possible that you’re already paying the best price out there.
We’re still recommending it as a savings strategy because you never know what a policy review will turn up. For peace of mind, use one hour a year to make sure you’re not missing out on opportunities to save.
5 mistakes to avoid when trying to lower home insurance
Knowing the best strategies to save on home insurance isn’t enough; it’s equally important to understand where you can go wrong. Below, we’ve outlined five common mistakes that homeowners make when trying to keep their premiums low.
Mistake #1: Choosing the lowest premium every time
How it could backfire: Low premiums often equal low coverage. If you need to make a home insurance claim, that “cheap” policy could cost you more in the long run.
Saving on home insurance is about finding the best price for the right coverage, not necessarily the best price overall. Before trying to reduce your home insurance premiums, sit down and evaluate what type of coverage you really need:
- Are you willing to sacrifice add-ons like sewer backup and overland flood insurance?
- Do you want your home insurance policy to cover the full value of your personal items?
- Are you comfortable with a moderate amount of liability coverage?
When shopping for quotes, don’t consider cheaper options that don’t meet your full insurance needs. Make sure that you understand exactly what you’re paying for (and what you’re leaving on the table) when you accept an insurance offer.
Mistake #2: Insuring your home based on its market price
How it could backfire: Your home’s market price includes the value of the land it sits on, which your insurance company won’t cover. You’re likely overinsuring if you base your coverage on market price.
A key factor in the price of home insurance is your home’s replacement cost—that is, the estimated cost to rebuild the entire structure from scratch based on the cost of labour and building materials in your area. The policy limit for your dwelling coverage should be based on your replacement cost.
When you get online quotes for home insurance, the carrier may automatically calculate your coverage amount for you. Be careful to review these coverage amounts, with an advisor if possible, to make sure you’re not paying for more coverage than you need
Mistake #3: Making upgrades without informing your insurance company
How it could backfire: Not only could you miss out on additional discounts for climate-resilient upgrades, but your future claims could be denied if your insurer finds out that you made upgrades without informing them.
Contact your insurance provider before making any changes to your home’s structure, as these will change your home’s insured value and potentially impact risk. Your policy needs to reflect the most up-to-date information about your property, including renovations.
Mistake #4: Cancelling your policy before renewal time
How it could backfire: Cancelling your home insurance mid-policy term could result in a financial penalty.
Technically, you’re allowed to cancel your home insurance at any time (although if you have a mortgage, your mortgage lender likely requires continuous coverage!). But waiting until your policy is already up for renewal can make cancellation more affordable.
If you cancel well before your renewal date, your insurance company will typically refund any unused premium. But you might not get the full amount back, since many insurers will impose an early cancellation penalty to reclaim some of the costs they expended on opening your policy. This is often referred to as a short-rate cancellation fee, and you can avoid it by simply waiting until your policy is about to expire anyway.
If you’re cancelling your home insurance to replace it with a policy from another provider, make sure that there’s no gap between your old policy’s cancellation date and the new policy’s start date.
Mistake #5: Shopping on your own
How it could backfire: Missing out on expert guidance could mean leaving discounts, low rates, or important coverage on the table.
If you’re a seasoned homeowner with confidence in your insurance literacy, shopping solo could be the most convenient option. But for most homeowners, spending time learning insurance lingo, researching discounts, and comparing the fine print of carriers’ offerings isn’t a priority. After all, insurance professionals study for months to earn their credentials; most of us outside the industry don’t have that kind of time to spare.
That’s why insurance platforms like PolicyMe exist—to share the expertise of professional training and industry insights with busy homeowners. Our platform will recommend coverage based on your profile, and a licensed insurance advisor can help you review your finances, your coverage options, and your premiums to make sure that your home has the right protection and your price is the fairest possible options on the market.
FAQ: How to lower home insurance
This article is for general information only and is not insurance or legal advice. Examples and any sample quotes or rate ranges are illustrative and do not constitute an offer or guarantee of coverage, price, or eligibility. Actual coverage, discounts, and premiums depend on your individual circumstances and the insurer provider; if there is any discrepancy, your policy and insurer documentation govern. For advice about your situation, speak with one of our licensed insurance professionals.