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Applying discounts to your policy can be one of the most effective ways to save money on your homeowners insurance. Some discounts may not be quite so simple to obtain, installing a new roof, for instance, but others may not require much of you at all. Bankrate’s insurance editorial team explores discount opportunities and ways you can save on your homeowners policy.
How can I get home insurance discounts?
Contacting your home insurance company or the agent who sold you the policy is a good first step in getting home insurance discounts. Most insurance experts recommend that you speak with an insurance professional 30 to 60 days before your policy renews. A licensed agent can not only help you better understand your policy but can also identify new discounts you potentially qualify for. For instance, if you’ve added a front door camera or have gone a certain period of time without filing a claim, you may qualify for a lower rate.
Home insurance companies can give discounts across several categories, like customer loyalty, payment-based discounts, savings for damage mitigation and so on. While exactly which discounts are available will depend on your provider, we’ve listed some of the most common home insurance discounts below.
Bundling
One of the biggest potential ways to save through a home insurance discount is by bundling insurance policies. With a home and auto bundle, you insure both policies with the same carrier. Not only is it easier for you to keep track of your insurance policies, but it also means you should be eligible for some kind of bundling discount. Although the most common bundle includes home and auto, your insurance carrier may also offer other bundling options, such as life, renters and auto. Exact savings will vary based on your provider, but some advertise discounts up to 25 percent.
Bankrate tip
You might be able to combine home and auto
deductibles too, instead of paying a separate deductible for each type of claim. Ask an agent whether this is available and how it might benefit you.
Security/safety measures
Home insurance rates are, largely, a calculation of risk. The more of a risk it is to insure your property, the more you’ll likely pay for your policy. But, taking steps to lower the risk of filing a claim may help you earn a discount. For instance, adding security features to your home can reduce the chances of a break-in, while certain monitors can alert you to things like fires and gas leaks and save your family from injuries or even death. Security and safety measures are usually devices, such as:
- Deadbolts on exterior doors
- Fire extinguishers
- Smoke detectors
- Carbon monoxide detectors
- Water leak detectors
- Gas leak detectors
- Burglar and fire alarm systems
- Sprinkler system
Depending on the company, some smart home devices, like smart thermostats and home monitoring systems, can get you a discount on your home insurance, too. Certain insurance companies even partner with smart device companies to offer additional incentives, including free devices.
Home improvements
Updating your home to make it more resistant to damage is another way to get home insurance discounts. For example, you might qualify for cheaper home insurance if you install an impact-resistant roof or storm shutters to mitigate weather-related damage. Some insurance companies also offer discounts for upgrading to a new electrical, heating or plumbing system if you live in an older home.
Loyalty discounts
Some home insurance companies reward you for staying with the same company year after year. For instance, Allstate rewards new customers with a welcome discount, and a continued discount each year you remain a customer. Loyalty discounts vary and are not offered by all companies, though.
Claims-free
The longer you go without filing a claim, the more you typically stand to save on home insurance with this discount. Most insurance companies give a discount after you have been claims-free for either three or five years. The discount remains until you file a claim under your homeowners insurance.
New homebuyer
If this is your first time buying a home and gathering home insurance quotes, don’t forget to mention that you are a new homebuyer. Not only can first-time homebuyers qualify for this discount, but some companies also extend the lower rate to buyers of brand-new construction — even if they have owned a home before.
Early signing discount
The early signing discount is a reduced rate on your home insurance for signing up with the company before your current policy expires. Most companies send renewals out between 30 to 60 days before the current policy term ends. If you shop and sign up with a new company before the effective renewal date, you may qualify for this discount.
Payment-based discounts
How you pay your premium could help you lower it. Setting up automatic payments, opting for paperless billing and paying on time may help you save on your home insurance costs. Generally, these kinds of discounts are smaller, typically around 5 percent. But, if there is more than one payment-based discount available, you may be able to stack them for extra savings.
Homeowner-based discounts
Some insurers offer discounts based on a homeowner’s age or occupation. These discounts could be available to seniors, retirees, members of the military, government employees and others. Ask an agent for more information.