Home insurance discounts help owners save hundreds of dollars in premium payments. Simple steps like installing safety measures, making on-time payments, bundling coverages, or being loyal customers can help homeowners keep premiums low without giving up coverage options.
This post examines several home insurance discount opportunities, how they are applied, and what you can do to take advantage of them. These strategies — many of which might be unexpected — can maximize savings and extract hidden value from home insurance.
How Do Homeowners Insurance Discounts Work?
Home insurance, also known as homeowners insurance, can be more affordable depending on specific criteria. Premium discounts can be triggered instantly just by:
- Installing security systems
- Being in the military
- Paying on time
- Being loyal to an insurer
These discounts incentivize homeowners to monitor their insurance status and take specific measures to enhance their savings opportunities.
Best Home Insurance Discounts
With strategic thinking and foresight, owners can make home insurance more affordable. Here are several types of home insurance discounts owners can take advantage of.
Multi-Policy or Bundling Discounts
Homeowners can reduce their premiums by combining home insurance with auto, life or umbrella insurance from a single provider. Depending on the insurer, homeowners can save on home insurance just by pairing it with car insurance from the same company.
Claims-Free Discounts
If a homeowner doesn’t file any claims on their insurance during a given period, they may qualify for a claims-free discount. In most cases, the required time frame for claims-free discounts is between three and five years. Insurance companies reduce premiums if they decide the liveliness of the policyholder filing a claim is low.
Loyalty Discounts
If you stick with the same home insurer for extended coverage, the company may offer discounts to acknowledge and reward your loyalty. The average savings for remaining loyal to an insurance company is 8% for 10 years of coverage, 6% for five years and 5% for three years.
Paying-on-Time Discounts
Your insurer may offer a discount if you maintain a track record of paying home insurance premiums on time. Staying on top of timely payments reduces your insurance company’s administrative tasks. In addition to saving you money, having a history of on-time payments can benefit your credit score.
Automatic Payment and Paperless Statement Discounts
Streamlining your billing process by scheduling auto-pay and accepting paperless statements can save you money on insurance premiums. This also reduces the administrative tasks an insurance company takes to maintain your policy. By making these billing choices, you save around $10 monthly in premiums.
Early Quote Discount
You can save on homeowners insurance premiums by getting a quote well before your current policy expires. Insurers like to secure policy renewals from loyal customers as early as possible, so an early quote discount helps them attain that goal.
Paid-in-Full Discount
Insurance premiums are usually charged in monthly installments. However, if you pay your entire premium in an upfront lump sum, your insurance carrier may offer to lower the cost. The paid-in-full discount can save you a considerable amount in premium payments.
Retiree or Senior Citizen Discount
Policyholders of a certain age — typically between 55 and 65 — qualify for discounted rates from major insurers. Underwriters believe that older individuals are more likely to spend time at home, thus lessening their risk of making insurance claims. In response, insurers often offer discounts on premiums for seniors.
Employee or Military Discounts
Insurance companies reward policyholders who work for specific companies or are enlisted in the military. Some underwriters offer discounts for active or honorably discharged military members. Working in certain professions — especially education — can qualify you for premium savings.
New Buyer or New Home Discounts
Many new homes include modern features to lessen the risk of damage and insurance claims. This gives insurers the opportunity to offer discounted premiums to customers who have just purchased a new home. First-time homebuyers can also enjoy premium discounts as insurance companies look to expand their customer base.
Security System Discounts
Installing a security system in your home significantly mitigates your risk of loss from theft, burglary, or vandalism. To that end, many insurers offer steep discounts if you implement or upgrade your home security system. Check to see what your insurer may offer homeowners who install advanced security measures to protect their homes.
Fire Prevention and Protection Discounts
Installing fire alarms, sprinklers and fire-resistant materials reduces the risk of fire devastation. Insurer companies often provide significant premium discounts if you take these fire safety measures. Just installing sprinklers can net a discount between 5% and 15%.
Restoration Discounts
Homeowners who renovate their homes to improve their livability and structural integrity may realize discounts on home insurance. Repairs to the roof, plumbing system, and electrical components reassure insurance providers that the homes they cover are less likely to experience deterioration and damage.
Smart Home Discounts
You may unlock discounts on home insurance if you equip your home with technology such as:
- Front door sensors
- Fire and smoke detectors
- e-thermostats
- Water leak sensors
These devices are believed to preserve home safety and energy efficiency. As a result, using more smart devices can increase your premium discount.
Find the Best Home Insurance Discounts From Benzinga’s Top Providers
Here’s a list of some of the top home insurance discounts providers offer.
Additional Ways to Lower Costs on Homeowners Insurance
Aside from these conditional discounts, homeowners can take a few measures on their own to lower their premiums on home insurance. These include:
- Shopping around for quotes from different providers
- Accepting a higher deductible amount
- Keeping a positive credit record
- Living in an area at less risk of crime or natural disasters
- Reviewing and changing coverage limits to meet your current needs
Your insurance carrier may offer additional steps you can take to save money on home insurance.
Find More Ways to Save on Homeowners Insurance
While insurance bills comprise a significant part of your monthly bills, making them more affordable is possible. Your insurer may offer several ideas and opportunities for saving on your premium payments.
Providing these chances for savings is in these companies’ best interests as they seek to add and retain loyal customers. Talk to your insurance agent to see what discounts you may qualify for.
Frequently Asked Questions
How do you get discounts on home insurance?
You can get discounts on premiums by taking measures to lessen your home’s chance of risk, maintaining a positive record of premium payments or simply meeting certain standards like age, employee status and being active in the military.
Do you get a discount on home insurance if you have a security system?
Many companies offer discounts for homeowners who implement alarms, set up outdoor lighting, reinforce doors and windows, install technology and take other measures to beef up security.
Can you negotiate homeowners insurance?
It depends on the insurance company’s policy. You can usually negotiate home insurance premiums, especially if you shop around. You may be able to barter on bundled policies, coverage limits, risk mitigation and other factors.