I love discounts! If those discounts are on something I want, that’s wonderful! If they are on something I have to have, such as home insurance, that’s even better! Why pay more if you don’t have to?! Let’s take a look at discounts organized by category to help guide us.
Home Buyer: If you’re buying a home, you’ll be pleased to know most home insurance companies offer a discount for that. It’s designed as an incentive to make their offer a little better, and why not? After all, you have a lot of other items you’ll be paying for at closing!
Insurance Shopper: Tired of paying more for your home insurance and looking to see who will save you some money? Shop early! Most carriers will provide a discount when quoting your insurance 14 days or more in advance.
Payment Method: Once you find the perfect policy, be willing to bind it by paying in advance at least 7 days before the policy effective date to take advantage of any early payment offers some carriers offer.
How you pay and the frequency of payment also may provide discounts. Most carriers offer a discounted rate if you pay the full year in advance. Safeco offers the same discount if you pay in two payments for the year instead of one.
If you don’t have that much cash lying around, then set up automatic payments to draft a checking account via electronic funds transfer. This usually cost less in fees than using a recurring credit card payment method. MetLife prefers this method of payment so their rate is less on a monthly EFT arrangement than it is if you pay in full.
Safety Counts: If your home has certain safety features including deadbolt locks on the doors, a fire extinguisher, and is visible to your neighbors, there’s a discount for that! Homes with an unmonitored burglar and fire alarm get a bigger discount, while if both alarms are centrally monitored, you get an even bigger discount on your home insurance.
Homes equipped with a partial or full sprinkler system get a very attractive discount. While these are more common in apartments, condos, and townhomes, some builders have and are adding them in nicer homes.
Many home insurance carriers provide discounts on homes located in gated communities. This discount increases if there is a security guard present at a gatehouse or entry way of a high rise condo community.
Homemakers & Retirees: Is someone in the home most of the day? Many home insurance companies offer a discount for mature homeowners or homes that are occupied during the day.
Home Age and Updates: If you’re buying, a brand new home, rejoice! You’ll be paying some of the lowest home insurance rates around as many companies offer either a discount or a reduced rate based on new or newer homes.
If you’re buying a more classic home, then take advantage of home updates. Most insurance companies provide attractive discounts for homes with new or newer roofs, as well as, updates to the plumbing, electrical, and HVAC systems. In some cases, you’ll need written proof of these updates such as a copy of the seller’s disclosure or receipts of when the work was done.
Have you replaced your roof due to the hail storms this year? Then confirm that the new roof discount was added to your policy. They are usually added automatically, but take a moment to confirm with your agent or the company.
These aren’t all the home insurance discounts that available. I’ll look at several more next week and then we’ll examine different factors which impact your rate. How many of these discounts can you take advantage of? Let me know and share your comments and questions with me on my Facebook, Google +, and LinkedIn pages. I’d love to hear from you!