What are the Typical Discounts Provided by Home Insurance Companies?
Homeowner’s insurance is a necessity, especially if you have a mortgage. If your lender finds you without homeowner’s insurance, they’ll force place a policy on you at your cost. Trust us when we say that the cost is not something you will enjoy; it will be much higher than any policy you could get yourself. If you find yourself scrambling to find the lowest homeowner’s insurance, learn about the typical discounts many companies provide to make the most of your search.
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If you have more than one thing to insure, such as a home and a car, get the policies from the same company. You’ll likely get a bundling discount then. Actually bundling homeowner’s insurance and car insurance usually provides the largest discount. However, you could bundle any types of policies and often receive some compensation for it.
Claim Free Periods
All of the home insurance companies have different periods they require homeowners to be claim free before providing a discount. When you shop for homeowner’s insurance, inquire about any claim free discounts the provider offers. This way you can determine if you have a potential claim if it will be worth it in the end. Sometimes just paying for the repairs or damages yourself nets you a better deal if the discount is large enough.
If you have any type of safety precautions in place, they may make you eligible for some decent discounts. Most commonly, home insurance companies provide a discount for an alarm system or a video monitoring system. You may even find companies that offer discounts for things like the Ring Doorbell or other smartphone connected device.
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Most companies also offer a small discount for things like smoke detectors, carbon monoxide detectors, and sprinklers inside the home. These all help alert homeowners of danger and allow them to get help quicker. Sprinkler systems help put the fire out faster than waiting for the fire department to arrive. This decreases the amount of the claim the insurance company may have to pay out on, which is why they offer the discount.
Age of Your Home
New homes tend to have less of a risk of a claim being filed. They are privy to the latest technology and have new materials used to build them. While the risk of fire or storm damage doesn’t decrease with a new home; other risks are lessened. Older homes are just prone to more issues and have a higher risk of a claim. The younger your home, the more discount you may get. However, if you recently renovated an old home, you may be able to grab a small discount as well.
Many homeowners shop around each year to find the lowest homeowner’s insurance premiums. While this might make sense, loyalty goes a long way with home insurance companies. If you remain with the same company for many years and remain claim free, you may just get a loyalty discount. If you don’t see such a discount on your declarations page, ask your agent. Oftentimes, just asking will net you the discount you want.
If you smoke, you likely pay higher premiums for your home than a non-smoker. The risk of fire is higher, so the premiums must increase. If you are a smoker, you’ll have to inquire with your agent about how long you have to be a non-smoker to get the discount. It’s not enough to say you quit last week and want the discount. Many insurance companies make you wait 2 years before they provide the discount. This provides a window of opportunity for you to start up again, which would negate the discount.
Home insurance companies have many discounts up their sleeves; you just have to ask for them. Make sure you cover all aspects of your home and the precautions you have in place. The more details an insurance company has, the better idea they have of what discounts you qualify to receive. Even a small discount can help you afford your premiums in the long run. Of course, you can always tweak your deductible amounts to get the premiums down where you need them.
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