We get asked this question a lot at Keyes Insurance. We understand that home insurance premiums—those pesky payments you make to protect your home—might feel like a bit of a mystery. But we’re here to help you understand how they’re calculated, especially in places like Nova Scotia and New Brunswick. Let’s break down what really goes into those numbers on your bill, and what makes premiums different between these two provinces.
1. Your Home’s Location Matters—A Lot!
Where your home is located can play a huge role in how much you pay for insurance. In the two provinces with offering our services in, location-related factors can vary quite a bit:
- In Nova Scotia, the coastal areas are beautiful but can also be more prone to things like storm surges, flooding and hurricanes. If you live near the ocean, your premiums might be higher because insurance companies consider the risk of water damage or wind-related issues. Halifax, for example, may have higher premiums than inland towns like Truro because of its proximity to the coast.
- New Brunswick, on the other hand, might have fewer coastal risks but could have other concerns, like flooding in river valleys. So, if your home is near the Saint John River, for example, your premiums might be a bit steeper due to the increased risk of flooding.
Both provinces also consider factors like crime rates in your area. If you live in a neighborhood with low crime, your premium might be lower compared to someone living in a higher-risk area.
2. The Value of Your Home
The higher the value of your home, the more it costs to insure it. Sounds simple, right? But it’s not just about the market price of your home—it’s about replacement cost. That’s the cost to rebuild your house from the ground up if something happened.
- Older homes in Nova Scotia or New Brunswick may have more character, but they can also come with higher premiums because they often cost more to repair due to older construction methods or materials that are harder to replace.
- If you’ve done renovations or upgrades, like adding a new kitchen or finishing a basement, these can bump up your home’s value, and your premiums might go up as well.
3. Your Claims History
Here’s one that sometimes catches homeowners off guard: how many claims you’ve made in the past can affect what you pay now. If you’ve made several claims in recent years, such as renovating your basement due to a sewer back-up, insurers might see you as a higher risk. This in turn will raise your premiums.
In Nova Scotia, where weather-related claims (like those from winter storms or hurricanes) are more common, you might see an increase in your premium after filing claims for things like water damage or roof repair.
In New Brunswick, claims related to freezing pipes or flooding can also raise your rates. Even one or two claims can make a difference, so it’s always a good idea to think carefully before making a small claim. Sometimes, it might be better to handle minor repairs on your own rather than risk a premium hike.
4. Other Factors to Consider
Our Keyes family wants you to recognize a few other things that can influence your home insurance premium:
- Age and type of roof: A newer roof can help lower your premiums, while an older roof might bump them up.
- Home security: Got a security system or smoke detectors? These can sometimes lower your premium because they reduce risk.
- Heating type: Homes with wood stoves might pay more for insurance because they’re seen as a fire risk compared to homes with electric or gas heating.
Final thoughts
At the end of the day, your home insurance premium is a mix of factors like where you live, your home’s value, your claims history, and other risk-related elements. While you can’t control everything, knowing what impacts your premium gives you a bit more power over those costs.
Keeping claims low, staying on top of home maintenance, and knowing your area’s risks can go a long way in helping you manage what you pay. If you’re looking for more information about insurance premiums or want to see if you can lower your premiums, give someone at the Keyes family a shout. We’re here to protect your family, and are happy to look into ways to reduce risk in your home.
