Why Do Home Insurance Companies Offer Discounts for Non-Smokers?

Smoking has been proven repeatedly over the last several decades to be devastating to a person’s health. Insurance is all about risk – and because smoking is a risky activity, it can present a much higher risk to insurers. Of course, that might seem most prevalent with life insurance, where the risk is all about the individual and their health conditions. But did you know that smoking is considered a risk to many home insurance companies as well? That’s right – it’s considered to be so much of a risk that if you aren’t a smoker, you can inform your home insurance provider and they may give you a discount.

Still, not every insurance company offers this discount. It makes sense that the discount exists. After all, lighting up indoors can be a serious hazard. Negligently discarded cigarettes have been known to cause devastating wildfires and smoking indoors is still considered to be one of the leading causes of house fires. Unfortunately still, only a few home insurance companies offer discounts to non-smokers.

Why? Well, there are a few reasons.

Why doesn’t every home insurance company offer a non-smoker discount?

Insurance companies will generally base the discounts they offer on their target market, historical data, and other analytics and metrics. It can get confusing. If the data shows that asking homeowners about their smoking history is vital, they might ask during the quoting process. Other companies won’t ask at all if fires because of smoking is even a risk. In Ontario, maybe around half of home insurance companies currently offer non-smoker discounts.

How much of a discount does being a non-smoker give me?

Depending on your home insurance provider and if they do offer a discount for being a non-smoker, you can receive anywhere between a 5-20% discount on your home insurance – with the same coverage – just for not being a smoker. That being said, being a “non-smoker” also includes not using cigars, pipes, vape pens, and even cannabis. All of these “forms” of smoking have some evidence to suggest they may increase your risk of experiencing a home fire, which can take away your chance of a discount.

Also, it doesn’t just have to be you that’s a non-smoker. Have an aunt living with you who has a cigarette or two a day? That nullifies your discount. Smokers, so long as they’re living at home, pose a higher risk of fire at home.

Now that cannabis is legal in Canada, many homeowners might be wondering if it’s okay to smoke a joint occasionally or vape – and still maintain their discount. Unfortunately, many home insurance companies don’t care what is being smoked or how it is being smoked. The fact of the matter is that fire losses occur no matter what form, whether you’re smoking tobacco or cannabis. Lying about being a smoker could void your policy in the event a fire does occur and the cause is discovered. It may also make it more difficult for you to be insured again in the future. You may pay a little more than you would like by informing your insurance broker, but it is much better than having your policy voided.

Other home insurance discounts

If you’re a smoker, it’s not the end-all-be-all. There are other home insurance discounts you can qualify for that will help save you money. These include bundling (i.e, having multiple insurance policies through a single provider), having fire alarms and home security systems installed, being claims-free for three years or more, being mortgage-free, or having a new home.

Have any questions about smoking or other home insurance discounts? Contact Excalibur Insurance at 1-888-298-7343 to go over any of the discounts and options that we offer, today or when you need us.