Home insurance companies offer discounts for a bunch of reasons. Here’s an article I found that mentions 15 ways to save, but omits one key fact.
If you own your home free and clear, you can save on home insurance. Canadian Capitalist noted this in a recent post.
Take If Shari, a reader who paid off his mortgage in 2004. He wanted his insurer to pay back all the foregone discounts.
We have been insuring our home and two cars with Aviva for many years, paying several thousands dollars each year.
Just yesterday, I have discovered that they allow a discount on home insurance if you are mortgage free. The amount is quite significant at $80 for just this year.
Aviva never notified us of the existence of such discount. If we had been aware, we would have definitely advised them earlier.
I told him that I doubted he would be reimbursed for six years, but he wanted me to try. So, I contacted the company complaints officer, whose number I found through the Financial Services Commission of Ontario.
Guess what? He got a positive response the same day.
Ellen, it worked! Someone called to say she will be giving me a refund of all the past years’ overpayment. Thanks to you! Ellen, you don’t know your own power!
Glenm Cooper, the media contact at Aviva, said my interest helped speed up the refund. But it would have come anyway because the customer had attached a letter from the bank, testifying to his mortgage-free status since 2004.
So, ask your insurer about mortgage-free discounts. I called mine (TD) and found it offered one, though this discount didn’t make the list at its website.
I’m still waiting to hear why the insurance companies think there’s less risk once the mortgage is paid off. Maybe readers can explain it.
News flash: I’m giving my evening course at University of Toronto, Investing for Beginners, starting Thursday, Sept. 16. Here’s a link for information and registration.