How To Get Homeowners Insurance Discounts – Forbes Advisor
Home ownership expenses like mortgage payments, property taxes, utility bills, and home insurance can eat up a significant chunk of your budget. And that’s before you factor in lawn care, maintenance, or your multiple streaming services. (don’t worry, we’re not here to tell you to get rid of netflix).
If you’re looking to save some money on household-related expenses, a homeowners insurance policy is a place to start. The average cost of homeowners insurance for $300,000 worth of home coverage is $1,854 a year, according to analysis by a Forbes advisor.
There are several ways to find ways to get cheaper home insurance. One way to save is discounts on home insurance.
How do home insurance discounts work?
Homeowners insurance discounts can lower the cost you pay for coverage. you can get a discount when you first buy a homeowners policy, or you can add them later when you’re eligible for those discounts.
For example, you can get a discount right away if you have auto insurance and home insurance from the same company. or that discount could be added to your policy later if you don’t bundle the policies initially but later have both with the same company.
It’s a good idea to check with your homeowners insurance company to make sure you’re maximizing your discounts. For example, your insurer may not realize you have a new security system that could lead to a discount on home insurance.
Another thing to know is that insurance companies often limit discounts. That means you may not get all the discounts you’re eligible for. instead, an insurer may say that she can get up to 20% or 25% in total. discounts and limits vary by company.
How can I get discounts on home insurance?
One of the easiest ways to get a home insurance discount is to simply ask your insurance agent to review the discount. Your home insurance company may not be aware of recent changes that could qualify you for savings. For example, if you recently took steps to protect your home, like installing fire alarms or a security system, you may qualify for a security discount.
Another good way to find new home insurance discounts is to compare quotes from other home insurance companies. insurance companies differ in their discounts and rate structures. Shopping around is a great way to find affordable home insurance (and cheaper auto insurance, too).
discounts related to your address and area
Your own home may have features that can save you money, like:
- new or renovated home discount. Newly built or renovated homes are often eligible for discounts because upgraded systems, such as wiring and plumbing, are less likely to fail and lead to an insurance claim.
- disaster preparedness discount. If you live in an area prone to severe weather conditions, your insurer may give you a discount if you take steps to prevent damage. For example, storm shutters, door bracing, and shatterproof glass can reduce damage from high winds.
- security and safety discounts. this generally applies to devices such as smoke detectors, fire extinguishers, fire alarms, burglar alarms, sprinklers, water shut-off devices, and deadbolts on doors outside.
- Proximity to a fire hydrant or fire department. If you live near fire damage control resources, your insurer may offer you a discount.
- discount for roof age. Roof repair costs give insurers major headaches. some, like usaa, offer discounts based on the age of your roof.
- Military discounts. If you are a current military member, a veteran, or the spouse or child of a military member, you may be eligible for a discount.
- employment, organization, and association discounts. Your insurer may offer a discount for certain occupations, such as educators. You may also qualify if you are a member of a union, professional organization, or association.
- seniors or retirees. some home insurance companies offer a discount on the price if you are retired or an elderly person who works part time. Generally, to qualify, the home must be your primary residence, you must be over 55, and you must work outside of your home less than 24 hours a week.
- discount for early quote. Some insurers, like Progressive US subsidiary of Strategic Insurance, will give you a discount if you get your quote in advance, like four days or more.
- no claims discount. An insurance company may offer a discount if you don’t file claims for a certain period of time.
- Insurance payment discounts. You can usually get a small discount for paying your bill in full or going paperless.
- loyalty discount. Some insurers reward customers who have stayed with them for several years.
- multiple home discount. If you insure more than one home through the same insurance company, you can usually get a discount.
- multi-policy discount. Also known as “bundling,” buying more than one type of insurance from the same company is often one of the best discounts you can get. Combining auto and home insurance is a common multi-policy discount, but you can also bundle home insurance with life insurance, RV insurance, motorcycle insurance, and other types of insurance.
- general package discount. there may be a special discount if you also purchase general insurance.
owner profile discounts
Other home insurance discounts are based on your homeowner profile. here are some examples:
discounts related to the policy
There are also policy-related pricing discounts you may qualify for, such as:
other ways to save on home insurance
In addition to home insurance discounts, try these cost-cutting strategies.
raise your home insurance deductible
A deductible is the amount of money your insurance company deducts from the payment of your claim.
here is an example. Let’s say you have a $1,000 deductible and her house is damaged in a fire. the house sustains $20,000 worth of damage. the insurer provides a check for $19,000 to pay for the damages and you have to pick up the remaining $1,000 or find a way to shell out just over $19,000 for repairs.
The higher the deductible, the less you’ll pay in premiums. just make sure you can afford a high deductible amount if you need to file a home insurance claim.
maintain good credit
Home insurance companies often use a person’s credit when setting rates.
About 85% of home insurance companies will consider your credit-based insurance score as part of their rate setting, according to FICO. You can improve your insurance score the same way you would improve your regular credit score.
Homeowners insurance companies are competitive, and you should use that competition to your advantage. that includes looking to compare homeowners insurance quotes from multiple homeowners insurers annually or every two years.
Insurance companies set rates and discounts at different levels. one may be more lenient if you have multiple claims on your insurance record, while another insurer may charge much higher rates.