In response to a recent post on auto and home insurance premiums going up in Ontario, Cindy, who buys her insurance through the Co-Operators, commented that her auto insurance premiums went up by 9.6 percent and home insurance went up by 22 percent. When she called, there was little the insurance company could do about the auto premiums but Cindy found that Co-Operators offered a 24 percent discount on home insurance if there was no mortgage on the home. As Cindy had recently paid off her mortgage, she qualified for the discount.
Turns out, Co-Operators is not alone. When I called our insurance provider — Belair Direct — to inquire about a discount on home insurance for a paid-off home, I was told that Belair’s discount on home insurance for a mortgage-free home is 15 percent. It’s a good bet that your insurance company may also offer a similar discount. A paid-off home is a giant step forward in achieving financial independence. Who knew that holding that mortgage burning party has side perks such as a discount on your home insurance?