You should take advantage of all discounts you can to reduce your home insurance premium. The best way to do this is to shop around for a cheaper rate and then ask about any savings you might be eligible for.
There are several different types of home insurance discounts. You should know which are available to you and what each one entails. Some discounts can be easy to obtain while others may not be as common. You should do some research before committing.
The discounts offered by each insurer may vary, but all can help you save money on your homeowners' insurance. Here are a few of the more common discounts.
1. Bundling your auto and home insurance together
You can save money by bundling your auto and house insurance. Bundled insurance policies are usually discounted by the majority of insurance carriers. If you bundle your auto and home insurance with the same company, you could see up to 20% off your premium.
2. When paying for your insurance in advance, you can save money.
One of the most common discounts offered by carriers is the paid-in full discount. To qualify, you must pay your policy up front for the year. This can save you 5% to 10% on average, but it's always best to check with your carrier to ensure you're getting the maximum amount of savings possible.
3. Maintaining a clean history
Many insurance companies offer loyalty discounts to their loyal clients. The insurance companies will offer you a lower rate for your home policy if they know that you won't make any claims in a given number of years.
4. Installing safety devices and smart home technology
Some insurance providers reward their customers when they make upgrades to their houses that prevent damage. Even installing fire sprinklers and security systems can result in a discount. Some insurance companies also offer a discount if you opt for a programmable thermostat or a smoke detector.
5. Home improvements
Some of the upgrades you can make to a home can help lower your insurance premium. For example, adding storm shutters, upgrading your roofing to impact resistant materials, or updating your heating, plumbing and electrical systems can all reduce your rates. Be sure to inform your insurer of any changes you make so they may take them into consideration when calculating your premium.
6. Discounts on first-time homebuyers or newly built homeowners
Here are some easy ways to get a discount on homeowners insurance. Most home insurance companies give a discount to first time buyers or those who buy a brand new home. How often this discount applies varies by company, but it's typically available within one to 10 years.
7. Purchase of a new house
A lot of people don't realize that buying a new house can be a good way to earn a home insurance discount. It's especially important if you switch from a rented home to a homeowners' insurance policy.