Several factors go into determining a home insurance quote. It can depend on risk factors, surcharges, and discounts. You have little control over risk factors such as the location, building materials, or age of your home. But generally, you can impact your eligibility for discounts to save money on your home insurance premium.
Typical discounts for policyholders include bundling your home and auto insurance, upgrading your roof, and adding a fire or security system. Many other discounts exist, though your options can vary by company.
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Overpaying for home insurance?
How to Qualify for Home Insurance Discounts
Some home insurance discounts are automatic, and the insurer will apply the savings at the start of your policy. For instance, newer homes generally require fewer repairs because the roof, construction material, and appliances have seen less wear and tear. Insurance companies consider new construction to have reduced risk, and your rate can reflect a lower price.
Other discounts can apply when you upgrade your home or reach specific milestones, such as getting older or quitting smoking.
Your homeowners insurance quote may not include all the discounts available to you. To find additional savings, review your policy periodically. Common situations that could trigger a review are:
- When your policy comes up for renewal
- When you make major purchases or home improvements
- If you get married, divorced, or have adult children move back home
Popular Homeowners Insurance Discounts
It’s essential to understand what discounts are available and how they can affect your premium. However, most homeowners don’t know the ins and outs of their home insurance policy.
To help you get started, here are popular home insurance discounts to ask your agent about.
1. Bundling Discount
Combining policies is one of the most common ways to lower insurance premiums. According to the Insurance Information Institute, bundling your home and auto insurance can qualify you for a multi-policy discount, saving you an average of five to 15 percent.
Compare the costs of a combined policy to buying individual policies to make sure you’re saving money. It might be cheaper to buy your home and auto insurance from two separate companies.
2. Paid-in-Full Discount
Insurers often provide discounts if you pay your policy in full rather than in monthly installments. You could cut up to 12 percent or more off your annual premium by paying in full. The national average home insurance premium is $2,071, which means you could save nearly $250 per year.
3. Responsible Payment Discount
Like a paid-in-full discount, responsible payments can qualify you for home insurance savings. You could automatically cash in on lower prices if you have a good payment history, pay on time, use auto-pay, or have an escrow account set up to pay your premium.
4. Claims-Free Discount
Filing multiple home insurance claims can increase your premium. It could lead to your insurer canceling your coverage altogether.
Sometimes filing a claim is unavoidable. But not having recent claims can make you eligible for significant savings. For instance, Allstate has a claim-free discount that lowers your bill as much as 20 percent.
5. Home Alert System Discount
Safety discounts can apply if you install a home alert system to monitor for smoke, fire, and burglaries.
A company might call it a home alert system discount, a protective device discount, or another variation. The premise is the same: you can unlock a homeowners insurance discount when you protect your home from theft or fire. Consider installing an alarm system, smoke detectors, fire extinguishers, and burglar alarms connected through a central system.
A sprinkler system is another option to safeguard your home from fire damage. As long as the system meets the National Fire Protection Association standard, most companies will offer a sprinkler system discount.
6. New Construction or New Homebuyer Discount
Buying a new home can automatically qualify you for a discount. If your home is brand new construction, you could save 50 percent.
Even if your home isn’t newly built, most insurers offer policy discounts on houses less than 10 years old. A house up to 25 years old may still be eligible for a discount, but it’s likely to be a minimal amount of savings.
Going from renter to homebuyer could also open up a discount. For instance, Progressive can offer you a lower premium for switching from a renters policy to homeowners insurance.
7. Roof Upgrade Discount
Anything you do to make your home more disaster-resistant, including upgrading your roof, can unlock discounts. Stronger roofing materials and reinforcing your roof are common upgrades.
An impact-resistant roofing discount can lower your costs while protecting against lightning and hail. You could also qualify for a roof-age discount if your home has a new roof.
8. Loyalty Discount
The insurance industry is competitive, and companies are known to reward loyal customers. If you’ve been with the same home insurance company for two years or more, you may qualify for a loyalty discount.
Some insurance companies lower your premium by 10 percent every year if you continue to be a customer.
9. Early Signing Discount
It can pay to plan ahead, especially for homeowners insurance. An early signing discount can apply if you get a quote before your existing policy expires. Some companies require you to get a quote ten 10 in advance, while others may allow you seven days or fewer.
Either way, you could save up to 10 percent or more on your homeowners policy with an early signing discount.
10. Homeowners Association Discount
Not all homes are in a homeowners association (HOA). But if you are, you may qualify for a discount on your homeowners policy.
HOA communities are generally gated or secured, and some have regular security patrols. Because of these increased safety measures, your home is less likely to be the target of theft. The reduced risk leads some insurance companies to offer HOA discounts for policyholders.
11. Home Insurance Discounts for Teachers
Some home discounts can include lower insurance premiums for teachers. Meemic, an insurance company that exists solely to serve teachers and school employees, has special rates and discounts that can save the educational community up to 50 percent or more.
Members of the National Education Association (NEA) can access discount programs, too. The NEA Auto and Home Insurance Program says it can save members an average of $423 per year.
12. Discounts for Personal Characteristics
Your personal lifestyle choices can affect your home insurance rates. Because smoking can increase the risk of fire damage, smokers may pay more for home insurance than nonsmokers. A nonsmoker discount is available from many insurers. For example, Farmers can provide a nonsmoker discount if no one in the house has smoked for at least two years.
Getting married could lower costs by combining insurance policies. Instead of paying for two policies, one partner could add the other to their existing coverage.
You could also get a discount on home insurance based on your age. Typically, policyholders 50 years or older can qualify for an age-based discount.
Lower Insurance Costs Without Cutting Coverage
Home Insurance Surcharges to Watch For
Surcharges can increase your policy premiums. Although it isn’t technically a discount, eliminating surcharges on your home insurance can lower your costs.
Ask your insurance agent about ways to save if you have any of the following:
- Pets: Over half of U.S. households include a pet, and homeowners with pets could pay higher insurance premiums. Due in part to the over 4.5 million people suffering a dog bite every year, dogs can be riskier to insure.
- Swimming pool: Homeowners with swimming pools may want to increase their liability coverage, which can cause higher premiums. Safety precautions, such as installing a fence around your pool and moving the ladder from an aboveground pool when not in use, can help keep your pool secure.
- Trampoline: You may pay a $25 to $50 per year surcharge for having a trampoline. Ask your insurance agent for opportunities to lower your premium. For instance, your agent may suggest adding a safety net around a trampoline to reduce costs.
Frequently Asked Questions - Home Insurance Discounts
Can I lower my home insurance costs without discounts?
Discounts are one way to lower your homeowners insurance costs. Increasing your deductible can result in less expensive premiums. Make sure the higher deductible is affordable and won’t cause financial hardship when you file an insurance claim. Home improvements, such as appliance upgrades and a new roof, can also cut policy costs.
How can I find an affordable homeowners insurance policy?
Shopping around to compare rates is one of the best ways to find an affordable homeowners insurance policy. Insurify makes shopping for home insurance easy by helping you compare rates from companies like Liberty Mutual, Travelers, The General, and Nationwide.
Can I qualify for renters insurance discounts?
If you rent your living space, renters insurance discounts can help you save money on your policy. Like homeowners insurance, renters insurance policyholders can qualify for multi-policy discounts if you bundle your renters and auto insurance. Some companies offer safe home discounts if you add a security system, fire alarms, or other safety devices and services.
Could You Be Paying Less for Home Insurance?
Home insurance is often a necessary cost of being a homeowner. By shopping around for rates and asking about home insurance discounts, you could save a significant amount on your premiums.
Because not all discounts are automatic, review your insurer’s discounts to see if you qualify for policy savings. Remember that discount options and policies can change. It’s a good idea to ask your insurer whether new discounts are available and periodically compare rates to get the best price on home insurance. Companies like Insurify are mean to serve this purpose and act as the best way to compare home insurance rates.
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