Top 10 Homeowners Insurance Discounts of 2022
Home insurance discounts give the policyholder a chance to save money on premiums without sacrificing their coverage.
Looking into dozens of homeowners’ insurance policies while also trying to figure out which insurance premiums suit your budget perfectly can be quite a daunting process. Many future policyholders fail to recognize here, though, that they can take advantage of discounts and significantly reduce the costs of their homeowners’ insurance premiums.
We’ll be sharing the most sought-after insurance discounts, explaining how home insurance discounts work, and assisting you in determining whether or not you qualify for a discount offered by your home insurance company.
So, if you’re looking to save money on your homeowners’ insurance policy, continue reading!By making use of your home insurance discount, you can lower your insurance premiums - without sacrificing the home insurance coverage you purchased in the first place. Click To Tweet
How Does Homeowners Insurance Work?
While some people might still regard homeowners insurance policy as a luxury, we’re here to tell you otherwise – it’s a necessity you should be thinking about before you move into your future home. But how does it even work?
The good news is that understanding how home insurance works is quite easy – so, let’s flow over the basics of this insurance policy.
Research Insurance Companies
The absolute first thing you need to do before you make any kind of decision regarding insurance is to comparison shop and take the time to evaluate several different homeowners insurance companies in your area.
In short, rather than focusing on one insurance company, do your research:
See where they’re located, their ratings, customer service, and most importantly – obtain quotes from their insurance websites, and compare them.
Once you get in touch with your potential provider, it’s time to inquire about the insurance discounts they offer. Luckily, you’ll have a clearer picture once we start listing them down in a minute. One great advantage is that you can do this “introductory part” through insurance websites – without leaving the comfort of your own home.
Purchase The Policy With The Insurance Company Of Choice
Once you find the insurance company that offers the best quotes and opportunities for discounts, it’s time to say “Yes” – and purchase the policy that might as well save your home one day.
While you’re at it, ask about the payment methods. Different providers will offer certain benefits based on payments – depending on whether you’ll pay your insurance rates annually or quarterly. And as you can imagine, insurance carriers enjoy working with clients that take maintaining the policy – meaning, making regular premium payments to their insurance company – seriously.
File A Claim
Since you bought the policy for fear of damaging your property, if something actually happens, it will be your safety net – and you may decide to file a claim. We feel like we should warn you that, by doing so, you’ll see an increase in your insurance premiums.
Just like in the initial phase, filing a claim could be done online or with your chosen agent in person – whichever suits you best at the time. Your insurer will guide you through the whole process, in which you will have to provide various evidence of damage to your house.
Home Insurance Discounts You Should Know About
Assuming you’re generally familiar with your chosen insurance policy and its scope of coverage, let’s not waste another moment and start listing down the discounts you should ask your insurance agent about.
As you’re about to see, you have quite a few options when it comes to insurance discounts.
1. Bundling Insurance Policies/Multi-Policy Discount
Combining multiple policies is an excellent opportunity for policyholders who have bought both home and auto insurance with the same company to receive discounts on their premium payments – hence the term “bundling.”
If you decide to bundle multiple policies – such as home and auto insurance – you can get a discount of up to 40%. However, these discounts vary, and it depends on which insurance company the homeowner chooses. So, choose wisely.
In addition to the price – which is an obvious relief – bundling could also make it easier to manage your insurance bills because you’ll be receiving all your notifications and bills on a single account.
2. Loyalty Discount
If you’ve been with your insurance company for a number of years now, there’s a pretty good chance that your home insurance company will reward you for choosing them time and again. That is usually realized through the so-called loyalty discount.
Know that not all insurance companies offer these discounts, though.
Those that do, on the other hand, offer their clients a 10% discount. You can count on loyalty discounts if you’re close to staying ten years with your insurance company.
This one is no secret:
Insurance companies love it when their clients are low maintenance – and that means being insurance claim-free.
If you’ve been with the same insurer for a number of years and haven’t filed a single home insurance claim during that time – meaning you’re claims-free – there’s a high probability that you are eligible for a discount on homeowners’ policy.
But as we mentioned earlier, this insurance discount is valid until you decide to actually file a claim – because, at that point, you’re no longer “claims-free.”
4. Monitored Burglar System
Investing in smart home technology and the security of your home by setting up an alarm system prior to purchasing a home insurance policy will certainly be of great help to you when it comes to eligibility for a discount.
Installing any kind of security system can bring you discount benefits.
For instance, installing a burglar system in your home significantly reduces the chances of you filing a claim against a break-in or theft.
No two insurance companies will offer the same discount, and the requirements vary by state. However, your discount can reach anything from 2-15%.
5. Fire Alarm System And Other Smoke Detectors
The faster the fire department responds, the better. Thus, it is recommended that you have a fire alarm system – preferably paired with a sprinkler system – on your property.
The smaller the damage to your property, the less you’ll have to pay toward the covered claim. And just like with the previous one, you have the chance to save between 2-15%.
6. Impact-Resistant Roof
Putting a roof over your head and maintaining it is, in layman’s terms, quite an expensive ordeal.
In the event that in bad weather, a nearby tree or some other object damages your roof, creating huge holes in it, this can cost you precious money. That’s why we put special emphasis on having an impact-resistant roof – it will save you a lot of money.
The purpose of a resistant roof is to protect the occupants from hail and flying debris.
In case you have moved into a house that already has a new roof, or you have thought of it in advance, you can inquire with your insurance company for a discount.
7. Home Improvement
Since we are already on the topic of improving your property and protecting it from outside damage, it would be useful to mention another way of getting discounts – and that would be home improvements.
Of course, when we say “home improvements,” we mean the necessary ones that would directly affect the quality of your home, not just the ones that are aesthetically pleasing or boost its market value.
If you have decided to invest part of your money in general home safety, security, and its longevity, be sure to consider the following improvements recommended by the Insurance Information Institute:
- Checking electrical systems and installing new wiring
- Water shut-off devices
- Storm-safe windows (storm shutters)
- New roof (as we’ve already mentioned)
- A sophisticated sprinkler system
- Smart home technology
You will certainly have the opportunity to get a discount since your home is already “insured” to some extent.
8. Living In A Gated Community
The area in which you live – essentially, your zip code – plays one of the major roles when it comes to your safety.
Preference is given to gated communities, which provide that extra dose of security when it comes to break-ins and thefts. Such areas generally have built-in video surveillance, and only those with a key have access to the property.
While you’re in the early stages of buying the policy, most home insurance companies will ask about your zip code and if you live in a gated community to immediately see if you qualify for this type of discount.
9. Retired Homeowners
If you have recently completed your career and retired, you have something to look forward to in your retirement years. Most insurance companies offer their retired clients discounts since their homes are considered less at risk than those belonging to working-age families.
Because the chances of you being home when you are retired are much higher, and you can keep an eye out for danger.
10. Married Or Widowed
In case you’re married or have recently become a widow, take the chance to inquire with your company about the possibility of discounts. The requirements may vary, but we can say for sure that some major insurers offer discount benefits for both situations.
Other Discounts You Can Apply For
The things we covered above were major opportunities for getting discounts. Now, let’s go through a few additional ways to save money on insurance:
If You Bought A New Home
Loyal clients are not the only ones eligible for a discount. If you have recently bought a new home and want to insure it, ask your insurance agent about the “new customer discount.” Anyone who purchased a home in the past 12 months should be eligible for it.
If You Don’t Smoke
The National Fire Protection Association states that tens of thousands of smoking-related fires that fire departments respond to occur in the US alone.
And as you can imagine, insurance companies typically aren’t particularly happy about such smoking-related risks. So, s0me companies have decided to grant a small discount to non-smokers.
If anything, that could be the much-needed motivation to quit smoking – you can save good money on your insurance premiums.
If You Have HOA
If you’re part of a neighborhood with a homeowner’s association HOA, then you’re aware of their high standards for maintenance. And since of your already high bills for maintaining the property you live in, the insurance company will most likely give you a generous discount.
If You Pay In Full
Naturally, discounts vary from one company to another, but if you purchase coverage and pay in full – you’re sure to get a discount.
Homeowners’ insurance policies offer a good discount on insurance costs if you pay at once. So, if you have the money, do it – you’ll save a valuable amount of cash.
Can The Insurance Company Turn You Down?
Unfortunately, yes, homeowners insurance companies do have the right to turn you down. You can be denied the discount you’ve been hoping for – and there happen to be several factors that may flat-out disqualify you from applying for one.
Low Credit Score
Before you can qualify for a discount, the insurance company will take a look at your credit score. Know that this applies to all the discounts that we’ve mentioned so far. Your financial history will essentially give your home insurance agent an idea of how reliable you are in terms of making timely payments.
If you’re late on your payments or not fulfilling your obligations, the insurance company won’t be too happy to offer you a discount.
It’s not just your property that the home insurance agent is assessing; they’ll look at your financial and criminal history, as well. With that said, if you’ve been convicted of something in the past, that reduces your chances of getting any kind of discount – let alone the maximum discount you’ve been expecting.
Your chances of landing home insurance discounts would get even slimmer if your crime was connected with arson or burglary.
Of course, if you have a clean record, there’s no reason to worry about these things.
Remember what we said about living in a safe, gated community – and how it can raise your chances of getting home insurance discounts? Based on that, you can imagine how living in a not-so-safe part of the town might affect you.
If your home is at one of the “high-risk locations,” you’re not likely to get any discount on your home insurance – simply because the chances of arson or theft are twice as high. On a similar note, living in areas with harsh weather conditions can make it harder for you to get a discount; weather-related risk and so-called “Acts of God” aren’t covered by a typical insurance policy.
Home Maintenance Issues
We mentioned this earlier when we talked about getting a discount. Now’s the time to say a couple of things that could put you off the list of discount-eligible homeowners.
It has to do with poor home maintenance, and factors that make it especially difficult to get a discount are:
- Leaky roofs
- Cracked foundation
- Damaged chimney
- Broken windows
- Corrupt burglar or fire alarms
- Unreliable plumbing
In some cases, it’s not your property or the zip code that’s the problem – it’s the age of your home. Naturally, older homes are prone to more damage, and thus, your chances of getting a discount are lowered. That is, in a sense, related to our previous point about poor maintenance.
Even some of the best homeowners insurance policies might have a strict ban – or, at least, specific limitations – on old and modular homes.
Now, this particular issue applies to those who own two homes and live in both throughout the year. For example, if you decide to live in warmer regions during the summer and leave your house empty during the second half of the year, the insurance company will assess your property as risky.
Since your house will be empty – and, therefore, unattended – for a while, it will be harder for your insurance agent to grant you a discount. For all you know, someone could break in and burst a pipe, which could go unnoticed for as long as you are not there. And by the time you come back, the issue could be even worse than it might have been initially.
Home insurance discounts give the policyholder an opportunity to lower premium payments – without it affecting the coverage that was initially purchased.
Before you purchase the policy, though, be sure to do thorough research on the insurance company, agent, and the coverage you’re willing to buy. Accordingly, discounts can be given to loyal clients or retired clients, those that have a fire or burglar alarm installed, those that have made the necessary improvements to their home – as well as those who bundled their home and auto insurance policies with the same company.
Qualifying for home insurance discounts is not as easy as it seems. For example, if you have a criminal history, your house comes with a “risky” zip code, or you have a low credit score, your chances are not that good.
With Insurance Geek, comparing insurance quotes is made easier. We’re determined to help you find the best insurance policy quotes for you!