Watch above: Recent severe weather across the country has caused insurance rates to increase. Wendy Winiewski looks into why rates increase no matter where the weather event occurs.
SASKATOON – Home insurance premiums are on the rise, officials confirm. Galon Insurance and Mortgage Brokers in Saskatoon advise you compare your current rate with years past.
“Definitely across the board we’ve seen rate increases,” said Tanya-Lynn deDelley with the brokerage.
Recent severe weather across the country has driven premiums up. On average, home insurance will increase about 7 per cent per year due to inflation but deDelley says the latest trend is closer to 15 per cent.
READ MORE: Saskatchewan’s inflation rate slows in January
“Insurance is one big pool and so everyone is in this group and if one person has a claim, that loss, the amount of that loss is spread among the group,” said deDelley. “So when you think of it on a global level and we look at the entire country of Canada, if there’s a big loss in one particular area, it’s not just that area that’s affected.”
Everything from flooding in Calgary and across the Prairies, to ice storms in central Canada, to ice damming in Saskatoon can affect your personal premium even if you haven’t made a claim. Those who’ve made claims will see the highest increase including a loss of their ‘claims free discount.’
Brokers recommend the following to decrease your premium:
- increase your deductible
- install disaster prevention tools such as a sump pump to prevent flooding
- install a home alarm to prevent theft
Home alarms with the technological feature to send temperature information to mobile devices have proven effective at minimizing damage in the event of a disaster. Installing one can decrease your premium by as much as 25 per cent.
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