With insurance rates on the rise across the country, it’s important to realize there are many elements that contribute to these increases. Whether you’re purchasing a new policy or renewing an existing one, these insights will help you understand how your rates are calculated. You can also find more information and save on your home insurance at mcdermottinsurance.ca
As floods, forest fires, storms and other weather events become more common, they cause extensive damage. This results in more costly claims. For more information on catastrophic losses in Canada, click here.
A higher demand for water and outdated municipal infrastructure make for more frequent sewer backups. These are causing higher damage-related claims.
As neighbourhoods grow, demographics and risks change. For example, if there is a new commercial development near your home, or if a new subdivision emerges, this might alter municipal infrastructure. These are factors insurers look at when assessing risk.
Inflation to goods and services means higher prices for things like labour costs for repairs and emergency services. This means claims payments become more expensive, too.
Solar panels, energy-efficient doors and windows, high-efficient appliances are all good choices for our environment, however, if damaged, they could be more expensive to repair or replace.
Home prices rising, high-end features like hot tubs and pools can drive up replacement costs and liability claims.
Finished basements cost more to repair, if there’s a sewer backup or other damage, due to higher-priced building materials.
Although costs are rising, there are way to save premium dollars
Ask our Brokers about the methods available to you at mcdermottinsurance.ca