How we find you the best home insurance policy in New Brunswick
Home insurance covers loss and damages to your home and any contents within it. It also provides liability coverage against accidents that occur on your property.
Most policies for single-family homes will cover detached structures on your property (e.g., sheds, garages), and some policies will even cover additional living expenses if you’re forced to temporarily reside in a rented home or hotel. The premiums you pay into your home insurance policy will help you cover these unexpected costs.
Sometimes buying home insurance can feel confusing — but it doesn’t have to be. LowestRates.ca compares the New Brunswick insurance market for you and connects you to brokers that can offer the best rates in the province.
Doing a little research before speaking with a broker can help you prepare for the process. Below, we’ve answered some of the main questions you may have about buying home insurance in New Brunswick.
What affects home insurance rates in New Brunswick?
Generally speaking, the major factors that affect home insurance rates include your home's location, age, build quality as well as the type of electrical wiring installed.
- Location: Your rates could be based on your postal code. For example, if you live in an area that has a high incidence of crime or is prone to natural disasters like overland flooding, your premium might be quite high. On the other hand, living close to a fire hydrant or fire station can lower your insurance costs.
- Wiring/electricity: Most insurers won’t cover knob and tube wiring or fuses, preferring to cover modern wiring options.
- Heating options: A wood-burning stove might be a relatively cheaper option for heating your home, but homes with one are considered high-risk for fires and carbon monoxide poisoning. Having one of these stoves will likely cause your rate to spike.
- Home replacement costs: This includes how much it would cost to replace the structure of your home. Also included in the price of your home insurance premium is the cost to replace your valuables such as jewellery, art, electronics, clothing, trees, plants, and technology.
- Liability: Should someone injure themselves on your property, liability insurance will help you cover some of the costs stemming from a lawsuit.
- Other risk factors unique to your geographical location (like flooding, avalanches, and earthquakes, for example) might also affect the type of policy you choose, which will impact your rate.
Insurance companies in New Brunswick are allowed to charge higher insurance premiums based on your credit score. On the flipside, if you have an excellent score you may be eligible for discounts from some insurers.
So, how much will home insurance cost you? One of the fastest ways to get a ballpark figure is to apply for a quote from a rate comparison site like LowestRates.ca. We’ll show you 10+ quotes from the top insurance companies serving New Brunswick and connect you with the company offering you the best rate.
Risk factors in New Brunswick
New Brunswick (along with the rest of Atlantic Canada) has certain environmental risk factors that might impact the type of home insurance you choose. The Insurance Bureau of Canada found that between 1983 and 2006, there were eight disasters that resulted in significant insurance payouts in Atlantic Canada, including New Brunswick. The bulk of the claims stemmed from property damage caused by strong winds and flooding. The major environmental risks in the province are:
- Overland flooding due to storm surges and increased frequency of winter thaws. The Beaubassin area of the province had a storm surge event in 2000 that resulted in damage to homes and cottages and millions of dollars being paid out in claims.
- Increased chance of hurricane damage.
- Sewer backup due to flooding. This is currently minor compared to other risk factors but is increasing due to homeowners finishing their basements for use outside of storage, according to a report by the Atlantic Climate Adaptation Solutions Association.
What kind of coverage do you need in New Brunswick?
There are four different types of home insurance policies: comprehensive, basic, broad and no-frills.
Comprehensive - This type of insurance covers the building and its contents against all insurable perils.
Basic or Named Perils - This policy insures your home and property for perils specifically named in your policy.
Broad - A broad policy insures your home for all insurable perils. However, contents are only insured against perils that are specifically named in the policy. It’s considered a middle-ground between a comprehensive and basic policy.
No-Frills - As the name suggests, this is basic coverage for properties that don’t meet normal insurance standards.
For New Brunswick, depending on the age of your home and location, homeowners may want to consider extra coverages (called endorsements) that cover:
- Overland flooding.
- Windstorm damage.
- Sewer backup.
Who regulates the home insurance industry in New Brunswick?
In New Brunswick, the Financial and Consumer Services Commission manages the day-to-day administration of the Insurance Act. It is also responsible for the licensing of insurers, adjusters, agents, brokers and damage appraisers.
To appeal a claim that’s been denied, policyholders should first seek a resolution with the insurance company’s ombudsperson. If that fails, try contacting the General Insurance OmbudService (GIO): it’s an independent, self-regulating body that deals with complaints from the public about insurance matters. One caveat is that this option is only open to you if your insurer is a member of the GIO. Your last recourse is to take the matter to civil court.
What can you do to save on home insurance in New Brunswick?
If you’re looking to lower the cost of your premium, try the following strategies:
- Bundle your home and auto insurance.
- Look into alumni or professional memberships for discounts.
- Offer to pay a higher deductible.
- Upgrade your home: replace knob and tube wiring, update valuable parts of your home, like the kitchen or basement, and replace lead pipes with copper or plastic.
- Reinforce your property to prevent damage and liability claims as a result of ice, snow, overland flooding and sewer backups.
What companies offer the best home insurance in New Brunswick?
Not all insurance companies will be right for you, which is why you should do some research before locking into a policy. Here are several things to keep in mind when you’re choosing an insurer in New Brunswick:
- Do they belong to a reputable association such as the Insurance Brokers Association of Canada?
- Are they licensed?
- Is the company and its agents in good standing? Check review sites or the Better Business Bureau for any customer complaints.
- Can they provide references from current and previous clients?
- How long have they been in business?
There is no single answer to who provides the best rates, as everyone’s home insurance needs are different. The right company is the one that offers you the best rate for the type of coverage you need.
Most of the major Canadian insurance firms have a presence in the New Brunswick including:
- TD Insurance
- The Co-operators
- Aviva Insurance
- Intact Insurance