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How to save on home insurance

Home insurance keeps climbing, but you have more levers than you think — and the best ones lower the premium without cutting the coverage that actually protects you. Here are eight that work, sourced to the Insurance Bureau of Canada and the insurers themselves.

Verified June 13, 2026

  1. 1

    Bundle home + auto

    A multi-policy discount is the single biggest easy win — most insurers cut both premiums when you hold home and auto together.

  2. 2

    Raise your deductible

    IBC puts it simply: when the deductible goes up, the premium goes down. Self-insure the small claims you would never file anyway.

  3. 3

    Stay claims-free

    Past claims are insurers’ top predictor of future ones. Avoid filing small claims you could pay yourself, and the claims-free discount builds over time.

  4. 4

    Add monitored alarm / water shut-off

    An approved burglar or fire alarm, and a professionally installed water leak-detection or auto shut-off device, both earn discounts at most insurers.

  5. 5

    Claim the right status discounts

    Mortgage-free, non-smoker, newer-home and loyalty discounts are real and often applied automatically — make sure your insurer knows you qualify.

  6. 6

    Update roof, plumbing, wiring & heating

    Upgrading aging systems lowers your risk profile and can reduce your premium — tell your insurer when you renovate.

  7. 7

    Use a group / affinity rate

    Alumni, professional-association and employer programs (e.g. TD Meloche Monnex, The Personal) offer preferred rates you may already be eligible for.

  8. 8

    Shop around at renewal

    IBC’s top tip: the simplest way to save is to compare. A broker quotes several insurers; a direct insurer quotes only itself — get both.

Save smart, not reckless

The one thing not to cut to save money: water coverage. Overland flood and sewer backup are usually optional, and they’re behind the most common — and most expensive — Canadian home claims. Trim the deductible and discounts first; keep the protection.

What actually sets your premium

Insurers price a policy on the risk and cost of rebuilding your home — not its market value. The big factors (per IBC):

  • Rebuild (replacement) cost of your home — not its market value
  • Your postal code’s claims history and distance to a fire hydrant / station
  • Your personal claims history — the single biggest behavioural factor
  • Home age and the condition of roof, plumbing, wiring and heating
  • Risk features like wood stoves, oil tanks, pools or a finished basement

Frequently asked questions

What is the easiest way to lower my home insurance?
Bundle your home and auto with one insurer, then raise your deductible to the highest amount you could comfortably pay out of pocket. Those two moves alone often cut the premium meaningfully — and neither reduces your actual coverage. After that, shop the renewal against at least one other insurer or a broker.
Does raising my deductible really help?
Yes. The Insurance Bureau of Canada puts it plainly: when the deductible goes up, the premium goes down. The trade-off is that you cover more of a small claim yourself — but since filing small claims also raises your premium, a higher deductible plus not filing small claims is a double win.
Should I avoid making small claims?
Generally yes. Past claims are insurers’ top predictor of future claims, so a small claim can raise your premium for years — sometimes by more than the claim paid out. For minor damage near or below your deductible, it is often cheaper to pay it yourself and protect your claims-free discount.
Is overland flood or sewer backup included by default?
Usually not. Most Canadian home claims are water-related, yet overland flood and sewer backup are typically optional add-ons. Don’t save money by dropping them blindly — compare how each insurer packages water coverage on our best home insurance comparison, then decide.
Can a security or water device lower my premium?
Often, yes. An approved monitored burglar or fire alarm earns a discount at most insurers, and a professionally installed water leak-detection or automatic shut-off device is increasingly rewarded — Desjardins, for example, offers discounts of up to ~10% for water-mitigation devices. Tell your insurer when you install one.
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Educational only, not insurance advice. Savings tips are sourced to the Insurance Bureau of Canada and insurers’ own pages and verified June 13, 2026; eligibility and discount amounts vary by insurer, province and profile — confirm with a licensed broker or insurer. See our methodology.