Being a first time home buyer can feel like a dream come true, especially after saving tirelessly for several years. That being said, being a first time home buyer isn’t a walk in the park — it comes with several responsibilities.

If you’re a first time home buyer insurance should be at the very top of your priority list.

Getting high-quality home insurance increases your chances of receiving financial support after a sudden, unexpected event (like a fire or tornado) damages or destroys your property. 

If you’re new to buying home insurance for a new home or would simply like to learn more about home insurance for first time buyers in Canada, be sure to continue reading more useful tips and information.

What is home insurance in Canada?

Home insurance is a contract between a homeowner and an insurance company. Insurance companies provide financial support to policyholders if they’re involved in an insured event that damages or destroys their property. In return, the homeowner makes regular payments (generally monthly or annually).

There are numerous types of home insurance coverages that homeowners can choose from. 

Some types of home insurance, like broad form coverage, offer a standard level of protection, whereas other forms of insurance, like comprehensive coverage, are more extensive.

Speak with your Surex insurance advisor to learn more about the different types of home insurance in Canada. 

Why is home insurance important for first time home buyers in Canada?

So, why is home insurance important for first time home buyers? For starters, it helps protect your investment!

Regardless of where you live, a home is an undeniably significant investment that generally takes several years to pay off completely. So, if something were to damage your home, like a house fire or tornado, having home insurance gives you the opportunity to get financial support. In contrast, if you didn’t have home insurance, you would have to pay for all of the damage out of pocket.

So, even though financial support isn’t guaranteed (this depends on the type of damage and types of insurance that you have), having home insurance improves your ability to protect your investment.

Additionally, most mortgage lenders require home buyers (first time or otherwise) to purchase home insurance. So, unless you are buying your home outright, you will need to purchase home insurance for your new home.

What information do you need to provide for first time home buyer insurance in Canada?

Insurance companies determine insurance pricing and eligibility based on what they call IRP - Individualized Rating Plan. Dozens of details go into determining the final, individualized price for each unique customer and their home

To get first time home buyer insurance in Canada, you need to provide the following information to your insurance company or broker:

• Property possession date — the date that you officially “possess” your property can influence your insurance rates.
• Property details — You’ll need to provide your insurance broker with a wide variety of property-related details, like the square footage, the year it was constructed and the exact address. Insurance companies use this information to determine home insurance and rebuilding costs. Other factors that are required include the construction type (brick, wood siding, fire-resistive, etc.), the type and age of the roof, electrical, plumbing and heating, how many floors, and if the basement is finished or unfinished.  All of these factors drive price and eligibility for coverage.
• Property title — A property title signifies who owns a property. In Canada, a property title can have more than one person listed as an owner. You’ll need to let your insurance company or broker know who the title owner/s is, as it can influence your home insurance rates. Why?  Personal details affect home pricing; your age, whether you're retired or not, and your credit history — all are included in determining the final price and eligibility

It’s also worth noting that if you aren’t a first time home buyer, you’ll also need to provide your past home insurance history. In most cases, you’ll need to let your broker know who you were insured with/your past policy number, how many years you’ve been insured and notify them of any past claims you’ve made in the past ten years. This information can generate claims-free and loyalty discounts.

How can you lower your first time home buyer insurance cost in Canada?

Whether you’re looking for first time home buyer insurance in Toronto or anywhere else in Canada, you can try the following tips and tricks to get the most bang for your buck on top-rated coverage:

Tip #1 — Bundle multiple insurance policies with the same provider

Bundling multiple policies with the same insurance carrier is an effective and low-effort technique that can help you lower the cost of your first time home buyer insurance in Ottawa or anywhere else in Canada.  In order to receive a bundle discount on a home policy, it will need to be bundled with your auto insurance policy.  <--(this is the only policy a home can be bundled with to generate a bundle discount.  Bundling with commercial policies, other property policies, recreational vehicles - none of those give a bundle discount.)

When you bundle your home insurance policy with your car insurance policy, you get access to fantastic savings — some providers offer discounts as high as 25%! So, if you have multiple insurance policies with various companies, you may want to consider opting for a single provider.

Tip #2 — Make use of various home insurance discounts

Bundling is far from the only way to save on first time home buyer insurance in London CA and the surrounding areas.

Home insurance providers offer a wide selection of discounts for policyholders. Some examples of common home insurance discounts that first time home buyers can qualify for include:

• Good credit insurance discount
• Home security discount
• Sewer back-up mitigation discount (obtained by installing a back-flow valve, sump pump and/or having a battery or generator backup on the pump)

Speak with your Surex insurance advisor to learn more about the discounts you may qualify for.

Tip #3 — Team up with a reputable insurance brokerage

Instead of spending your days calling various insurance agents, why not save time and energy by teaming up with a reputable insurance brokerage?

For those that don’t know, an insurance brokerage is a group that works with a variety of insurance companies. So, instead of spending your time re-explaining your situation to various agents, you can opt for a one-stop-shop approach by teaming up with a brokerage like Surex.

Save up to 25% on home insurance when you team up with Surex

At Surex, we redefine what a “brokerage” is. We work closely with over ten of Canada’s top-rated insurance providers, like Aviva. Working with a variety of reputable insurance companies allows us to provide policyholders with some of the most competitive quotes on the market.

Another way that we make it easier for policyholders to find quotes is by offering our services over the phone and online! Providing multiple options is another example of how we streamline the home insurance quotes comparison process for homeowners like you!

If you’re looking for top-rated home insurance coverage in Canada, be sure to reach out to a Surex insurance advisor today. Our team can help you start comparing quotes in ten minutes or less!