Do Home Insurance Companies Offer Discounts?

November 18, 2019

If you own a home, you need homeowner’s insurance. If you have a mortgage, it’s required. Even if you don’t though, you should protect your investment. What if the house burned to the ground or experienced storm damage? Home insurance protects your financial interest in the home.

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It’s no secret that home insurance premiums are expensive, but there are ways to get discounts. Keep reading to learn how to get the discounts you deserve on your home insurance.

Bundled Insurance

If you have other insurance needs, such as car, life, or health insurance, consider using the same insurance company for the policies. Insurance companies often reward for loyalty. When you get more than one policy with them, it increases their bottom line and they didn’t have to do any extra work to get the policy. You’ll typically find the greatest discounts with auto and home insurance bundles, but ask your agent about other possibilities as well.

The Home’s Age

Older homes often have more claims, which means higher premiums. If you have a newer home, though, you may have access to more discounts. Did your builder include an anti-theft system or state of the art fire alarm or sprinkler system? Was the home built with materials that decrease your risk of a total loss? Go over all of these details with your insurance agent. You never know when a newer home may have something that will trigger a discount on your insurance.

Claim-Free Discount

Each insurance company has a different period that you must be claim-free to get this discount. Some give a discount after as little as a year, while others only provide it after 10 years of no claims. The claim-free discount is a great way to keep you accountable.

It’s easy to file a home insurance claim for every little thing, but sometimes it’s not worth it. Not only would you lose your discount, but you may also increase your general premiums. Too many home insurance claims and your home could become uninsurable too. Don’t forget, you also have to pay your deductible. Sometimes claims aren’t worth enough to bother filing them. By the time you meet your deductible, your insurance may only cover a small portion of the claim. Losing your discount and paying higher premiums may not be worth the trouble.

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New Customer Discount

Insurance companies often try to reel in new clients with attractive rates. That’s why as an established client, you may not get the rates you see advertised. Those ‘teaser’ rates are to help bring in new clients. Once you are an established client, the insurance company may start raising your rates with each renewal. Keep track of the premiums and make it a habit to shop around and become a new customer elsewhere to get the discount.

Loyalty Discounts

Just as new customers get discounts, some insurance companies offer loyalty discounts. If you are a ‘good customer,’ which means little to no claims and on-time payments, you may be able to ask for a loyalty discount. Letting your insurance company know that you’re going to shop around to find better rates may entice them to give you a discount to keep your business.

Retired Homeowners

If you are retired, make sure your insurance company knows it! You pose a lower risk of filing a claim when you are home more. Retirees being home helps them be more aware of things going on at the home. If you can spot a problem early on, it decreases the risk of an insurance claim, which is why many companies offer discounts to retirees. This makes your premiums more affordable and makes you more likely to stay with the same insurance company.

Adding Safety Features

If you add any safety features to your home, let your insurance agent know. You may get a discount. The most common safety features include:

  • Smart fire alarms
  • Fire sprinklers
  • Anti-burglary devices

Even living in a gated community or having a neighborhood watch program in effect may help lower your premiums. Anything that lowers your chances of a claim should be mentioned to the insurance agent as it could result in a claim.

Getting discounts on your homeowner’s insurance helps decrease your annual premium. As premiums naturally rise every year with inflation, it’s important to look for discounts that may help bring your premiums to a more affordable level.

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