Saving on Homeowners’ Insurance For Beginners

The thing about car insurance discounts, while there are several, is that you have to be of a certain age or status as a driver to fully take advantage of them. That is not the case with homeowners’ insurance discounts, even if you are a new policyholder or homeowner. They can personally make some changes in order to get lower premiums on their policy for their home if they wish.

Saving on Homeowners Insurance For Beginners

Here are the incentives and discounts you can take advantage of.

Raise Your Homeowners’ Insurance Deductible

In any form of insurance, there is always a deductible. A deductible is an amount the policyholder personally pays in the event of claims or damage before the insurance company pays out. Again, this is the case for every type of insurance, and homeowners’ is no exception.

The thing about insurance deductibles is that they are directly inverse to the premiums or amount you pay for coverage –the higher the deductible, the lower the insurance rates will be.

You can save by increasing your deductible, but be sure that you can pay it in the event of a claim. A policyholder that doubles their deductible can save up to 12%.

Also Read: Disability Insurance: 4 Ways it Protects Your Income

Increase Your Home’s Security  

Just as cars with several safety and security features fetch lower insurance rates, so do security features for a policyholder’s home. Features like smoke detectors, alarms, and locks can help save around 5% to 10% on your homeowners’ insurance.

There are several specialized home security and safety products and services available. It helps to find the most reliable that fits your home budget and would make the discount worth it. There are reports of such burglar-proof systems saving homeowners 15% on their insurance rates.

Look for security features that involve loud alarms and quick notifications to emergency services. There are even cases where such features save 20% on homeowners’ insurance.

Don’t File Small Claims to Save on Homeowners’ Insurance

Filing a claim will actually increase your insurance rates. This is another general rule of thumb when it comes to insurance of any kind. The goal of insurance is to simply have it rather than use it.

That’s why if minor damage or hazard occurs, it’s best to really weigh whether or not it will be worth it to file a claim at all. If it’s damage that can easily be fixed, then you can cover it yourself and save the insurance provider the trouble.

As an incentive, being claims-free for a long period of time can result in a good customer discount of its own. A claim can increase your homeowners’ insurance rates by around 9%. More serious claims like water damage can result in increases up to 19%.

Inquire About Homeowners’ Insurance Discounts

Insurance is a business, and like any other business, there are discounts for customers. The aforementioned claims-free and security features discounts are just one of many available for homeowners’ insurance. Here are some of the most common ones offered to homeowners:

  • Home has been recently bought – In other words, you may get a discount if you have a relatively new home you just bought. New homes tend to be built out of the newest materials and are less prone to hazards. The materials that your home is made out of are actually a factor that determines how much it costs to insure.
  • No smokers in the home – There are cuts in insurance rates for those homeowners who don’t smoke at home or at all. Smoking is something that can actually damage your home with the odor and even be a fire hazard. Not having these risks present helps you save on your homeowners’ insurance.
  • Have your premiums paid automatically – Having your monthly insurance payments on an automatic payment plan, you can save a little on your homeowners’ insurance. Going paperless can also help you save as well.
  • Career and occupation-specific discounts – If you work as a teacher or engineer, then you may qualify for a homeowners’ insurance discount. Similar types of discounts are also done with car insurance.

Home Improvement Insurance Discounts

Home improvement projects that renovate or make new additions to your home may earn you an insurance discount depending on what is being changed or added. Shutters, roofing, and other “armor” for your house apply to this kind of discount.

Upgrading any old materials or features of your home also helps immensely. Having your home inspected is a great way to find out if improvements are wise or necessary.

Bundle Car And Homeowners’ Insurance Discount

Using the same insurance provider for your car insurance for your homeowners’ policy can earn you a loyal customer discount. Again, insurance companies are businesses and appreciate customers as any other one does. After all, business is what keeps their office lights on.

Also Read: Is Surrogacy Covered by Insurance or Not?

Fix Your Credit Score

Insurance is all about making your payments on time. Your credit score is the ultimate indicator of how reliable you are when it comes to this. Typically, scores 630 and higher are favored by insurance companies.

Your credit score also plays into other aspects of your life, such as renting an apartment or buying a car, so it is important to keep it in good standing.

Join The Discussion

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Share via
Send this to a friend