You Can Get Discounts on Your Home Insurance
You Can Get Discounts on Your Home Insurance. Here’s Who Qualifies
It is expensive to keep up with home insurance payments.
According to the most recent data from the National Association of Insurance Commissioners, average home insurance premiums increased by more than 3% in 2018 to $1,249 per year.
However, with a little time and effort, you can reduce your home insurance premiums through discounts and credits. In some cases, these discounts can save you up to 20% off regular premiums.
Homeowners Insurance Discount and Credits
Providers use a variety of factors to determine how risky you and your home are to insure, and you can take advantage of these factors through insurance discounts and credits.
For example, if your home was built within the last few years or if you recently remodeled, you are likely to pay lower premiums.
“When everything is new, the risk of damage is reduced. As a result, the need for insurance claims is reduced,” says Nick Schrader, an insurance agent with Texas General Insurance.
However, if your home has a decades-old roof or you live in a remote area, you may have to pay more.
Insurance companies prefer to insure low-risk homeowners, and if you qualify for some of the factors that make you low-risk, insurers will lower the cost of your insurance.
Who Is Eligible for Insurance Discounts?
Every insurance company provides discounts. The discounts available to you are determined by who insures your home.
“Do not be surprised if one company offers a discount on something that another does not. Each insurance provider will target a specific segment of the market that they believe is best suited to their product and then tailor discounts to that segment,” says Ted Olsen, managing director of Goosehead Insurance, an insurance agency.
If you already have a provider, it is always a good idea to call and inquire about any discounts they may offer.
Here's a quick rundown of some common home insurance discounts and credits:
- Newly built home
- Bundling multiple types of insurance
- Putting in monitored burglar and fire alarms
- Using the service provider for several years (loyalty discount)
- Few or no claims
- Home improvements (reinforced roof, storm windows, etc.)
- Employment (military, first responders, government, etc.)
Some insurers are also beginning to provide discounts for homes that have earned green certifications such as Energy Star and LEED.
Military Discounts
In the insurance industry, occupation-based discounts are common. You may be eligible for a military discount on your policy if you are an active-duty member of the armed forces, a veteran, or if your spouse has served.
Farmers and GEICO are two companies that provide discounts to active duty, reserves, and veterans.
There are also insurance companies that cater specifically to the needs of members of the United States Military. USAA is one of the top-rated insurance companies in the country, and USAA insurance is only available to veterans and their families.
Discounts for Seniors
If you are retired and over the age of 55, you may be eligible for lower home insurance premiums. Some companies offer discounts of up to 10% on premiums for these homeowners.
This is because retirees tend to stay at home more, making burglaries less likely. Retired homeowners may also notice fires or burst water pipes more quickly. As a result, providers consider retirees to be less risky to insure.
If you are an AARP member, you can get affordable home insurance policies from The Hartford, a well-known provider that caters to people aged 50 and up.
Bundling Discounts
When people buy multiple types of insurance, many providers reduce the cost of their policies. If you use the same company for your home and car insurance, you may be able to get a better deal on both policies. Renters, life, and boat insurance are some of the other policies that people may combine.
However, before making a decision, it is critical to shop around and compare the costs of policies from various providers. Even if a provider offers discounts, they may not be the best fit.
“The total value (coverage and price) of the policy is more important than the number of discounts. Many people will overlook a policy with fewer available discounts that is a better fit for them simply because another insurance provider offers more discounts but at a lower value,” Olsen says.
Conclusion
Try to re-evaluate your policy every year to ensure that you are taking advantage of all available discounts and credits. Taking a few minutes to look for discounts could save you hundreds of dollars on your insurance premiums. But, when it comes time to review your policy, keep your eyes on the prize.
There are additional ways to reduce your premiums. Setting higher deductibles in your policy can significantly reduce the cost of coverage.
“Generally speaking, if you can afford a higher deductible, you should do so. It will significantly reduce the cost of your home insurance, as well as make you think twice before filing a claim that could negatively affect your rates for the next 3-5 years,” says Duncan French, a State Farm insurance agent.
A good home insurance policy provides dependable protection for your home and belongings at an affordable price. Although discounts are appealing, the coverage provided by your policy should always come first.