Homeowners insurance is one of the vastest and most useful coverages out there. Your home is your base of operations in this crazy campaign we call life, so you want it to be protected. Similar to getting affordable car insurance, there are also several discounts that a policyholder can qualify for and use to reduce their annual premiums. Sometimes, the moment you buy a new policy can even be a qualification for a discount with some insurance companies. At the same time, there are some stipulations of when a discount would work, how much discounts can be applied, and how much a specific discount can be for homeowners insurance. This post serves as your tell-all guide to such discounts as bundling home and auto insurance for reduced premiums and what you can qualify for.
Homeowners Insurance Discounts in General
Homeowners’ insurance discounts are usually applied to someone’s policy when they purchase a new one, make an upgrade or change to their home, or make a change to the policy itself. Statistics have shown that a policyholder can save up to 40% on their homeowners’ insurance premiums. At the same time, how much you pay for your homeowners’ insurance depends on the factors of your home, like age and construction.
Different Types of Homeowners Insurance Discounts
Let’s look at the ten most common types of homeowners’ insurance discounts. You’ll find that there are several different things that a policyholder can take advantage of to lower their premiums:
- New home discount – When a new home has just been constructed, and the owner goes looking for buying furniture, and insurance coverage, they can qualify for a new home discount. New homes are often made of the latest and most reliable components with the most up-to-date construction work. This shows the insurance providers that the home they are insuring is safe and not a risk to insure for the time being. Some insurers also draw the line at ten years old for a home.
- Young home discount – Several homeowners’ insurance providers draw the line at five years for homes. That’s when they are officially out of their prime, and some of their components may have become outdated. Because of that, if someone is insuring a home that is less than five years old, they are subject to lower insurance costs.
- Bundling car and homeowners’ – This is a popular option by several and a reliable one at that. Insurance companies that provide both home and car insurance are happy to bundle them for a discount. Another thing that insurance providers appreciate is loyal customers. They are businesses, after all. Bundling discounts can be up to 18%.
- Upgrade to your home – Be it an electrical, plumbing, air conditioning, or sofa upgrade you make to your home, you should report it to your insurer. Replacing your home’s old features with newer and more reliable ones is a good way to lower your homeowners’ premiums.
- Roof discounts – Another factor of your home that determines how much your homeowners’ rates will be is the type of roof you have. Naturally, upgrading your roof will fetch a discount on your homeowners’ premium.
- Construction type – Insurance companies look at how the house was built. They take the materials, job length, and how fire-resistant the house is. They look for reliable craftsmanship with up-to-date materials specifically.
- Loyalty with insurance provider – As previously mentioned, insurance companies are a business like any other, and they love loyal customers. Let’s say that you had a separate policy with a certain provider and chose to get a new one with them; they will cut you a discount on it. Homeowners insurance is one such application. Several insurers draw the line at ten years.
- Advance purchase – Or a paid in full discount as it is often called. A new policyholder has the option to pay their insurance in full. Insurance companies appreciate this and will cut them a small discount. Just be sure that you can afford to do so and the discount of about 6% will be worth it.
Personal Discounts For Homeowners’ Insurance
If you noticed from the most popular homeowners’ insurance discounts, they are all dependent on your home. Some personal discounts that can be applied to a homeowners’ policy are:
- Marriage discount – It’s common in the insurance world for married couples to have lower premiums than single people. This is the case for both homeowners’ and car insurance.
- Non-smoking discount – It seems odd that whether or not you smoke is a factor in determining how much you pay for homeowners’ insurance, but remember that cigarettes are a fire hazard and insurance companies are aware of this. Because of this, non-smokers pay less for homeowners’ insurance.
- Retirement discount – Those who are retired or live in a retirement community are subject to lower homeowners’ insurance. These homes are often designed with the highest safety standards in mind and reliable materials.
- Veteran discount – Discounts for veterans and military personnel are available all over the insurance world –car and homeowners’ insurance is no exception.
Reasons to Bundle Car And Homeowners’ Insurance
Aside from the obvious reduction in your homeowners’ premiums, many people switch their car insurance over to their homeowners’ insurer for convenience’s sake. You only need to reach out to one agent to talk about or make changes to your insurance to some of the essential parts of your life –transport and shelter. Bills and payment plans can be streamlined since they’re all going to the same place, and deductibles can be paid all at once. Of course, you want to avoid claims and pay your deductible since it can cause your premiums to increase. At the same time, your loyalty as a paying customer will go a long way as the insurance company will be less likely to drop you as a policyholder. Policyholders that do this report discounts of up to 25%.
The Largest Homeowners’ Insurance Discount
How much exactly you will receive off your homeowners’ insurance depends on the insurance company you decide to go with. Keep in mind that there are caps on insurance discounts, and not every insurer offers as much off on premiums. Of course, you also have to make sure you’re actually saving and not going out of your way for a discount you can do better without. For that reason, it helps to shop at both national and local insurers. Some report homeowners’ discounts up to 76% if the home is new enough. Also, think about your relationship with your current insurer and if you are a loyal customer. Maybe bundling your home and auto insurance can also be in your best interest.
