Everyone loves saving money!  After all why should you pay more for something if you don’t have to? With that thought in mind, here are 4 standard home insurance discounts. Many of these discounts are also available on renters and condo policies too!
Age of Home: The newer the home, they less it costs to insure it. The reasons vary by insurers, but it is usually based on the perspective: they are less prone to claims.
Insurance companies vary by how long this discount applies:
- For some companies the home should be 10 years old or younger.
- Others will apply this discount on a home 20 years old or younger.
- This discount is usually a percentage that is on a sliding scale that lessens until the end of the discount period.
The amount of this discount ranges from 20% to 30% depending on the company and it usually applies only to single family homes.
If you live in an older home, or prefer older homes, find out when the following items were updated:
- Roof
- Water heater / plumbing
- Electrical
- Heating & air conditioning
Several companies provide discounts for new(er) roofs, as well as plumbing and electrical updates.
Account / Multi-policy: Most people are aware they will pay less for their home insurance if they also place the car insurance with the same company. The amount of the savings usually runs between 10% and 20%, although I have seen several companies provide greater savings as they seek to move away from writing only one line (home separate from auto) of business.
Additional discounts may apply on the home insurance if you also have an umbrella policy or a life policy with the same company.
Sometimes the best financial savings is to write both the home and car insurance policies with the same company. This is not always the case. I have several clients where it made more sense to place the home insurance with one company and the car insurance with another. To determine what provides the best savings, look at it both ways on an annualized basis. The answer will become pretty clear.
Alarm / Protective Devices: Almost all insurance companies offer a discount of up to 10% for having a centrally monitored burglar and fire alarm. In order to obtain this discount, you’ll need to provide a copy of your alarm certificate.
If you don’t have a monitored alarm system, several insurers provide discounts for homes with other protective devices including:
- Deadbolt locks
- Local (unmonitored) home burglar and alarm
- Smoke detectors and fire extinguisher
Some companies also offer a discount if your home has a fire sprinkler system. I see these most often in condos, town homes and apartments built in the last 5 to 10 years, however, I’ve also seen these installed in some newer homes or homes built in certain cities in the Dallas area.
Mature Homeowner: If you are a homeowner age 55 or older stand proud. Several insurance companies provide a discount when you reach this milestone so enjoy it! If you’re about to cross this mile marker, touch base with your agent and have it applied on your birthday. It makes a nice present for that birthday!
Next week, we’ll look at 4 other items that provide a savings on your home insurance. If you have a question, suggestion or comment, let us know and share with everyone else by posting it on our Facebook page or in the comments section of our blog.
