Whether you are reviewing your home insurance renewal or shopping for a new insurance policy, finding the best premium to reduce insurance costs and save money is important. Sometimes people think that if they have a price, it’s already the best it can be, but over time personal circumstances and discounts offered by the insurance company may change, so it is worth ensuring that you are getting all possible discounts on your policy. Here are some simple ways to reduce your home insurance costs without having to cut back on your coverage.
The Most Important Home Insurance Policy Discounts
Everyone has heard that bundling your insurance (having your home and auto insurance with the same company) can save you money, or that having no claims will earn you a discount. These are the obvious discounts we hope you are already taking advantage of. Insurance companies usually recognize these facts, so getting those discounts is often automatic.
You may have also heard that a higher deductible can save you money on insurance. You can learn more about how to use the deductible to save money here.
However, there are many other opportunities to get a better rate on your home insurance policy if you know what to look for. Here is a comprehensive list of some less obvious discounts that people may not take seriously or may not even know about to help reduce the price on your current insurance policy.
Home Improvement, Green Home, and New Construction Discounts
When people take good care of their homes and update roofs, windows, wiring, for example, many home-related risks are reduced. A new home may qualify you for a discount on your policy. Let your insurance company know about any renovations and improvements to your home to see if you can get discounts. Some companies offer significant discounts – we’ve seen some go up to 37% for new homes or renovations.
Loyalty Discounts
Loyalty discounts may be discounts that the insurance company can offer if you have been with them for several years. Sometimes referred to as renewal discounts, other times it may be called loyalty discounts or even a discretionary discount offered by the company if you ask for it.
Every company is different. Even if they do not have a discount by that name, let your insurance representative know that you’re looking for the best rate and wonder if the insurance company might review your price because you have been loyal. It never hurts to ask.
Good Credit Record Discount
Insurance companies have found that a good credit record is directly related to lower claims occurrence. Find out if you can get a discount for having a good credit record and learn more about insurance credit scoring and how it works here.
Water Protection Device Discounts
Loss mitigation devices such as automatic water shut-off valves, leak detection devices, or monitoring systems can offer additional discounts on your insurance policy with some insurance companies. Water damage is a major source of home insurance claims, so if you have additional protection, it’s worth looking for a company that offers you a discount for that.
Reducing Risks in High-Risk Areas
If you live in an area that has higher than average risks for certain types of damages such as storm-related claims, insurance companies may be willing to offer better coverage and discounts for using additional protection.
Some
The examples include: having a shock-resistant roof or building your home to fortified roof standards can save you up to 55%. Installing hurricane-resistant doors and windows or hurricane-resistant glass and doors can save you as well. In some states, like New York, insurance companies are required to offer discounts for these measures to prevent losses. Adding wind mitigation features to your home in areas with higher hurricane risks may qualify you for a discount. Discounts for gated communities or HOAs.
Living in neighborhoods or communities with enhanced security, such as camera surveillance, 24-hour security guards, or even neighborhood watch may earn you a discount. New homeowner discount.
If you are a first-time owner or new to homeownership, check our tips to help you save money when shopping for your first home insurance policy. You may also be able to request a new homeowner discount. It’s not available with all insurance companies, but it’s worth asking.
Monitored (or Unmonitored) Alarm Systems
Many focus on the fire and theft aspect of the alarm discount and forget to inform their insurance company when upgrading their system or including additional protection like: low-temperature detectors, video cameras, water leak sensors, cellular backup systems.
Adding these protections can double (if not more) the discount over what you would get just for a standard fire and theft alarm system. When you ask if you have a discount for the alarm, make sure to ask if any of the above items are included and how much you will save by upgrading your system. Also, note that a monitored alarm system will provide you with the best discount compared to a local alarm, which is not as effective.
Smart Home Discounts and High-Tech Sensors
Some insurance companies may offer discounts of up to 5-10% for high-tech sensors or smart home features.
Dry Pipes
For rural areas and locations that aren’t close to a fire hydrant, investing in a dry pipe may save you thousands of dollars on homeowners insurance premiums. According to the National Fire Protection Association, there were over 1.3 million reported fires in the United States in 2017. When your home is in an area without adequate water supply, your insurance policy price will generally be higher. Ask what type of discount you could receive if you have a dry pipe.
New Policy Discount
Sometimes homeowners insurance companies offer a different price for new policyholders. Often, the “new policy discount” can be balanced by a “loyalty discount” at renewal, but it’s not always so. If you didn’t get the best rates, don’t rule out your previous insurance company when shopping around as they may be willing to offer a “new customer discount” if you return to them. Some companies, like Erie Insurance for example, also offer a discount for obtaining a quote for insurance a week before the policy is due. Sometimes it pays to shop early for the best price.
Before you leave your current insurance company, ask them if you’re getting the best rates before you cancel, as they may have other prices to offer. You can also request a claims history letter from your previous insurance company to prove your coverage history.
Non-Smoker Discounts and Personal Discounts
Being a non-smoker may earn you a discount on your homeowners insurance policy as it can reduce the fire risk, but that’s not the only type of discount that insurance companies will offer based on your profile. You may qualify for other discounts based on: your profession, your education level, your employer, membership in certain organizations, marital status (or whether you have children), being retired or over a certain age or a student, being mortgage-free, your payment plan (people who pay in full or choose payment plans may receive discounts).
How to
Getting Discounts on Your Home Insurance Policy
The best way to ensure you receive all the discounts you’re entitled to on your home insurance policy is to review your policy every year. Contacting your insurance representative and asking them what they can do for you never hurts. Spending 10 minutes looking over options and discounts can save you hundreds of dollars.
Reducing Your Home Insurance Costs
Not every company will offer discounts for all the items listed in our list, but with insurance companies looking to be more competitive in attracting target customers, discounts like these will come into play. Asking about these discounts will help you find the company that will give you the lowest price while saving money on your insurance policy.
Source: https://www.thebalancemoney.com/ways-to-lower-home-insurance-costs-and-save-money-4175276
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