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 to their home, they have a much better chance of saving significant 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 find out more about saving on your own premiums, please give us a call.
Homeowners insurance differs from auto insurance in that the cheapest rates typically go to the newest model. Why? A newer home doesn’t have maintenance issues like cracking pipes, malfunctioning furnaces, aging electrical panels and wiring, and leaking roofs, which can lead to very costly claims for insurance companies.
In addition to that, newer homes have usually been recently inspected by a professional and any detected problems were required to be fixed. This can also apply to home renovations as well. If you are considering a renovation on your home, speak to your agent as he or she may have suggestions on construction tweaks to help maximize your insurance savings.
New home or renovation credit: up to 25 percent.
Living in a gated community not brings a level of comfort and security to you the homeowner, but some insurance companies are willing to offer credits for the decreased risk as well.
It should make sense that your homeowners insurance premiums are always dependent upon the location of your home. There are some parts of every town that pose more risk than others of vandalism and theft.
However, that doesn’t mean that living rurally brings lower insurance costs. Your proximity to a paid fire department in a safe neighborhood will typically bring the lowest premiums.
Gated Community Credit: 5 to 20 percent.
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 comprised, the resulting damage to the rest of the home raises dramatically.
A number of companies have released impact-resistant roofing materials in the past few years, and insurance companies have been willing to offer discounts based upon the materials’ sturdiness and ability to resist the elements.
Impact-resistant roofing credit: 5 percent to 10 percent.
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 almost 70,000 home fires, 500 deaths, and almost $1 billion in damages every year.
New wiring, installed correctly, is much safer and less likely to cause any type of outage, shortage, or fire.
New wiring credit: 10 percent
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 year smoking causes approximately 20,000 residential fires and over $325 million in residential property loss.
While not allowed in every state, there is a discount available for expressing to your agent and underwriter during the application process that your home is smokeless.
Nonsmoker credit: 5 percent to 15 percent.