When looking for ways to save on home insurance, you stop at a smoke detector, a security system and a multiline discount for insuring your home and vehicle with the same company. There are lots of ways to save on home insurance, from making some improvements around your home to opting for a higher deductible.
But if you’re wondering how you could further reduce the cost of your home insurance, be sure to ask for these 7 discounts.
1. Multi-policy discount
The multi policy discount is one of the biggest and best discounts given by insurance companies. Make sure you are getting the best insurance price possible by learning how to get a multi policy discount. Bundling all insurance policies with one insurance carrier is usually the fastest way to save on household insurance expenses.
Streamlining your policies through one insurance carrier will not only save you money but also time figuring your bills and filing a claim. It is possible to find savings a la carte, but it is extremely difficult to beat the multi policy discount.
2. Security system discount
Taking action to protect your property against burglary or destruction can help to reduce the cost of your home and contents insurance. So if you have installed security alarms, deadlocks or smoke alarms, ask your insurer to reduce your premium. Home security is more relevant for contents insurance.
The more deterrents there are for a would-be burglar at your home, the lower your contents insurance premiums will be.If you’re like most homeowners, you understood the benefits of an alarm system for months or even years before you installed one. It’s the cost, of course: the cost of installing the system and paying your monthly monitoring fee can really add up. But there’s a but.
A monitored alarm system – in other words, one that is associated with a company that monitors your home’s activity and can notify authorities – can net you a significant discount on your homeowners insurance premiums. It won’t be enough to completely offset the price of your alarm system, but it will certainly defray the cost of home security.
3. Updated HVAC systems discount
One home improvement project that will definitely make your home safer and possibly lower your homeowners insurance is to replace your HVAC system. Most people imagine a furnace and an air conditioner to be more of a luxury than anything else, but there is much that an HVAC system can do for your home.
Many people have outdated furnace and air conditioners whose electrical systems have not been updated. In some cases this can increase risk of fire and damage to a home. If your furnace or air conditioner is replaced by a reputable HVAC company they will ensure that everything is up to date with current electrical and mechanical code.
Your home’s HVAC system can contribute just as much to its safety, so it could very well lead to lower insurance payments. Additionally, it can greatly improve a building’s air quality even when it is doing little to change its climate.
4. New Windows Discounts
We think about our isolation, our flooring and pipes, but we often overlook one of the most important things at home: windows. Not only does this basic element help you reduce your monthly bills, but it also keeps you safe regardless of season!
Replacing your old windows with high-impact, new windows has been proven to be a wise choice for safety. It is also an extremely sound choice as far as your finances are concerned.
When you choose to replace your old windows with new windows your savings will include reduced insurance premiums, lowered energy bills, and increased resale value of your home.
5. New Roof Discount
Your roof is a major concern to your insurance company. Not only does it take a beating from wind, rain, hail and hurricane-blown debris, but once it’s compromised, the damage costs on a home insurance claim can rise dramatically.
So it comes as no surprise that, as more and more impact-resistant roofing materials have come to the market, insurers have been increasingly willing to offer rate discounts to homeowners as an incentive to invest in a “hard hat” for their abodes.
Your state’s department of insurance can direct you to information about impact-resistant UL 2218 standard roofing material, which is graded as Class 1 through 4, with Class 4 being the sturdiest. Insurers may require that your roofing material be tested by an approved laboratory before issuing a credit. The upgrade may also net you a tax deduction.
6. Mature homeowners’ discount: Age has its privileges
Home insurers love retired customers because they tend to spend more time at home, where they might be able to detect a home hazard in the making — a gas leak, pipe break or smoldering electrical panel — and avert a disaster. If you or your spouse are 55 or older and retired, and your home is your permanent residence, you may qualify for a mature insured credit.
“There is some data out there to support that people who are retired and therefore home more are able to avoid loss or identify loss sooner,” says Meehan. “During the day, if you’re working and have a pipe break, you won’t know it until you get home. But if there is someone home at the time, they go, ‘Oh, pipe broke,’ call people, boom; the loss is minimized. It’s a five-minute water run versus a five- or six-hour water run. You’re mitigating the loss immediately.”
7. Credit checks
If you’ve ever applied for an auto, home or personal loan, you know that your credit score plays a big factor in what kind of interest rate you’ll pay and helps determine if you qualify for financing at all. But you may not realize that your credit score can also impact how much homeowners insurance companies can charge you for premiums.
A credit score is a measure of your financial health, with 300 being the worst and 900 the best. A good credit score could suggest to an insurer that you’re less likely to file a claim whereas a bad credit score shouldn’t work against you so there’s no harm in asking.
Why Do You Need a Home Warranty and Homeowners Insurance?
Home warranty companies provide you with an additional layer of protection, covering the repair and/or replacement of covered household appliances and systems that fail due to normal wear and tear. When you have a home warranty, you reduce financial risk and remove the hassles and headaches of getting things fixed.
A common misconception is that you can only purchase a home warranty when you buy or sell a home. Home warranties can actually be purchased anytime, saving you significant time and money when your AC gives out in the heat of summer, or your washer breaks down unexpectedly.
Having both gives you optimum protection for your home. Homeowners insurance covers major issues caused by natural disasters or theft, while home warranties cover day-to-day expenses and headaches caused when home systems and appliances break down.
Life happens when we least expect it, and the appropriate home protection coverage can reduce stress, save money and provide peace of mind if – and when – something goes wrong.