If you own a home, insurance is important and it is important if you have debt. But homeowner’s insurance can cost you more than it should.
Fortunately, there are ways to lower your monthly homeowner’s insurance premiums without paying for the necessary services.
Many insurance companies offer incentives and discounts that can help you save money and lower your homeowner’s insurance costs.
10 Discounts to Lower Your Homeowners Insurance
Tired of overpaying for homeowners insurance? We don’t blame you.
Small changes — like keeping your coverage up to date and installing safety equipment — can save money on your homeowner’s insurance.
Here are 10 ways to get home insurance discounts and lower your monthly payments.
- Add security to your home.
- Combine your home and auto insurance
- Organize your house
- Ask about loyalty discounts
- Get free discounts
- Raise your deductible
- How you pay can help you save
- New home discount
- Homeowner’s discount
- Check out other homeowner’s insurance discounts
1. Add Security Devices to Your Home
Adding some security features and smart devices around the home can help you save 2% to 15% on your homeowner’s insurance. The exact discount depends on the company, the equipment you have and where you live.
Safety and security measures may include things like:
- Leakage sensors
- Smart smoke detectors
- Motion sensors
- Carbon monoxide, radon or gas detectors
- Burglar alarm system
- Fire alarms and fire protection systems
Some insurance companies offer discounts for installing high-quality security features such as exterior door locks, fire extinguishers or automatic sprinklers.
Insurance companies offer discounts if you install these devices or equipment because they make your home safer. A safe house means less risk for insurance.
2. Keep Your Home and Auto Insurance
You’ve probably heard TV commercials from insurance companies like Progressive and Liberty Mutual.
You can save a lot of money by building your home and auto insurance!
They are not wrong. Buying more than one order from the same carrier is the best and most affordable discount you can get.
You can often save anywhere from 5% to 15% on your homeowner’s premium by buying two or more insurance policies with the same company, according to data from Insurance Information Institute.
Consolidating your auto and home insurance with one carrier also makes it easier to track your coverage in one place.
Similarly, you can save money by insuring more than one home from one insurance company.
While many people get discounts on home and auto insurance, you can save on home insurance with other types of coverage, such as life insurance or RV insurance.
3. Organize Your Home
Have you completed a home renovation recently? You may have qualified for a homeowner’s insurance deductible without even realizing it.
Many insurance companies will lower your homeowner’s insurance premiums if you upgrade your home with an ineffective roof, storm-proof windows or storm shutters.
Contact your insurance company and ask them to have your home appraised so they can properly assess your repairs and increase your chances of saving.
4. Ask About Loyalty Discounts
If you have been with the same insurance company for three years or more, you may qualify for a discount.
However, homeowner’s insurance deductibles vary and not all companies offer them.
Another thing to keep in mind: You can save more money by switching to another insurance company than you can by renewing your long-term insurance policy – even if they offer a loyalty discount.
5. Get Free Discounts
Just like auto insurance, homeowner’s insurance companies often give you a discount if you haven’t paid a fee in a long time.
Most insurance companies will give you a discount if you have been claim free for three to five years.
6. Raise Your Deductible
Raising your home insurance deductible is an easy way to save money on your monthly payments.
Homeowners could shave about $260 off their insurance by raising their premiums from $500 to $2,500, according to a cost analysis by Insurance.com.
That’s because insurers realize that you’re likely to make fewer claims if you have more money.
Keeping $1,000 to $3,000 in your emergency fund can ensure that you have extra cash to cover the cost of the purchase if you need to make a claim.
7. How You Pay Can Help You Save
Most home insurance companies will give you a small discount if you pay a year’s worth of insurance up front. It’s similar to the discount you’d get for paying car insurance premiums annually or every six months instead of paying monthly.
In this digital age, many insurers also offer small discounts if you choose to pay paperless or pay your premiums through automatic bank payments.
8. New Home Discount
If your home was built in the last three to five years, you may qualify for a discount.
That’s because things like new wiring and a new roof are unavoidable and result in expensive insurance.
You can also get a discount for repairing old plumbing and electrical systems in your existing home.
9. Homeowner’s Discount-Special
Some insurers give you a discount for being you.
Here are a few examples:
- Military discounts. Many companies offer home insurance discounts to veterans and active duty military. You may be eligible if you are the spouse or child of a military member.
- Discounts for services, organizations and institutions. Teachers, firefighters and law enforcement officers may qualify for a short break.
- Discount for retired homeowners. Some insurance companies offer discounts to retirees over the age of 55 who work outside the home less than 24 hours a week. You can also save money on insurance premiums if you pay off your entire home.
10. See Other Home Insurance Discounts
Some of the less well-known homeowners insurance discounts can save you money on your insurance policy.
Other discounts and savings options include:
- Living in a gated community
- Be part of a home owner’s association (HOA)
- Living in a smoke-free home
- Removing dangerous objects, such as trampolines
- Maintaining a good credit history
- Living near a fire station or fire department
How Do Home Insurance Discounts Work?
Most home insurance deductibles are automatic, so you don’t need to apply for them at sec.
For example, if you keep multiple policies with the same carrier or pay your premiums for the entire year, this discount will be added to your policy without any additional work on your part.
However, it doesn’t hurt to call your home insurance company and ask if they can adjust the deductible to see if you qualify for additional savings.
This is especially useful if you have recently renovated or improved your home, such as installing security or smoke alarms. A home insurance agent may not be aware of other changes – and you may miss out on a lower price.
It’s also important to note that insurance companies keep your savings, even if you qualify for more home insurance deductibles. For example, an insurance company can reduce your savings by 20% to 35%.
The discounts you can receive vary. Check with your insurance company to see how many deductibles and restrictions apply.
Compare Reviews Of Other Insurers
It pays to shop around.
Although qualifying for the discount may make your current homeowner’s insurance policy cheaper, you can save a lot of money by simply switching to a new company.
It’s generally recommended to comparison shop for home insurance once a year or so to make sure you’re getting the best deal.
It’s also important to understand how much home insurance you need so you don’t pay too much for your policy.
Many companies offer easy-to-use home insurance tools on their websites. Or, you can ask your insurance agent or broker to buy it for you.
Rachel Christian is a Certified Personal Finance Coach and the lead author of The Penny Hoarder.