When looking for ways to save on home insurance, many homeowners think of smoke detectors or a home alarm system. Insurance companies, though, offer a variety of additional premium discounts that can help you save up to 25 percent on your insurance premiums.
For individuals who are willing to be more cautious and actively avoid potential claims on their home, they have a significantly better chance of saving money on their premiums.
Over the next two weeks, we are going to share a list of 10 “hidden” insurance discounts that can be applied to your premiums to help reduce them.
If you have a question or would like to learn more about saving on your own premiums, please don’t hesitate to call us.
1. Renovated Home
Homeowners insurance differs from auto insurance in that the cheapest rates are typically available for the newest models. Why? A newer home usually doesn’t have maintenance issues such as cracked pipes, malfunctioning furnaces, aging electrical panels and wiring, and leaking roofs, which can lead to very costly claims for insurance companies.
Additionally, newer homes are usually inspected by a professional, and any detected problems are required to be fixed. This principle can also be applied to home renovations. If you are considering a renovation for your home, speak with your agent, as they may have suggestions on construction tweaks to help maximize your insurance savings.
New Home or Renovation Credit: Up to 25 percent.
2. Gated Community
Living in a gated community does not bring a level of comfort and security to you, the homeowner. Still, some insurance companies are willing to offer credits for the decreased risk as well.
It should be clear that your homeowners’ insurance premiums are always dependent on the location of your home. There are certain areas in every town that pose a higher risk of vandalism and theft than others.
However, that doesn’t mean that living rurally brings lower insurance costs. Your proximity to a paid fire department in a safe neighborhood typically results in the lowest premiums.
Gated Community Credit: 5 to 20 percent.
3. Impact-Resistant Roofing
Roof claims are one of the biggest concerns for any insurance company. Because of the beating it takes from wind, rain, hail, snow, and even the sun, once it is compromised, the resulting damage to the rest of the home increases dramatically.
Several companies have released impact-resistant roofing materials in recent years, and insurance companies have been willing to offer discounts based on the material’s durability and ability to withstand the elements.
Impact-resistant roofing credit: 5% to 10%.
4. New Wiring
Did you know that old, outdated wiring causes twice as many house fires as electrical appliances? In fact, according to the U.S. Fire Administration, faulty wiring causes approximately 70,000 home fires, 500 deaths, and nearly $1 billion in damages each year.
New wiring, installed correctly, is much safer and less likely to cause any outage, shortage, or fire.
New wiring credit: 10 percent
5. Non-SmoNonsmoker
Even though the number of smokers nationwide is in decline, did you know that smoking remains the No. 1 cause of home fire fatalities in the United States? According to the U.S. Fire Administration, every yea,r smoking causes approximately 20,000 residential fires and over $325 million in residential property loss.
While not allowed in every state, a discount is available for expressing to your agent and underwriter during the application process that your home is smoke-free.
The percentage of non-smokers has increased to 15 percent.
