Home Insurance Discounts to Reduce Your Effective Premiums

Home insurance companies offer multiple discounts to entice and retain customers. The more discounts you get, the lower your rates will be. The discounts are available to different demographics, homes, and circumstances. You might not know all these discounts if you don't know about or ask for them.



Below are a few examples of these discounts.

New Home Discount

Home insurance companies know that old homes face more risks than new homes. For example, some old homes:

• Have malfunctioning utility systems, such as plumbing and electrical lines, which can malfunction and cause damage
• Have deteriorated structures, such as roof structures with an increased risk of collapse
• Are not code compliant

For these and other reasons, many insurance companies offer discounts to owners of new homes.

Secure Home Discount

Home insurance covers personal property theft and damage, so insurance companies welcome measures that reduce such risks. Security installations and features to consider include:

• Alarm systems
• Deadbolt locks
• Smart home technologies, such as connected CCTV cameras

The good news is that you can install these security systems in existing houses and enjoy the associated discounts.

Bundled Coverage Discount

Buy multiple lines of insurance from one insurance company and enjoy the bundling discount. For example, you may qualify for a bundling discount if you buy auto and home insurance from the same carrier. The discount is a reward for the additional business you give the insurance company. 

Claim Free Discount

Insurance claims cost carriers money, so they reward those who don't file claims for extended periods. Of course, you cannot forgo claim filing just to enjoy the discounts. Use these tips to enjoy a no-claim discount:

• Secure your home to reduce burglary incidents
• Maintain your home to reduce the risk of damages
• Pay small damages out-of-pocket

Ask your insurance company how long you need to stay claims-free to enjoy the discount.

HOA Discount

Homeowners associations (HOAs) often have strict rules and regulations for their members. For example, HOAs expect their members to keep their homes clean and well maintained. HOAs also regulate their owner's home improvement projects. These measures reduce the risk of damage to HOA homes. Thus, some insurance companies offer discounts to HOA members.

Group Discounts

Some insurance companies offer discounts to members of certain groups. For example, you may enjoy the discount as a member of:

• A profession, such as the military
• A religious organization
• An employee union

Ask your agent for discounts you may qualify for.

Fire Preparedness Discount

Insurance companies offer discounts to homeowners with above-average fire preparedness. For example, you may enjoy the discount if:

• You have a fire extinguisher
• You have a fire station in your neighborhood
• You live near a fire hydrant
• You have a smoke detector
• You have a sprinkler system
• You don't have a person who smokes in your household

These measures reduce fire risk and help you extinguish small fires before serious damage.

Damage Resistance Discount

Your insurance company welcomes anything that reduces the risk of property damage. Factors that determine the risk of property damage include:

• The type of construction material
• The type of fixtures, such as windows
• The design of your property

For example, storm-resistant windows can keep your house safe in a storm, and impact-resistant shingles don't suffer much damage during hailstorms. Thus, you may enjoy premium discounts if you incorporate damage-resistant measures in your home's construction or renovation.

Note that discount availability and qualification change over time. Ask your home insurance company or agent for these discounts. As an independent agent, Metropolitan Insurance Service Consultants, Inc., can scour the market and advise you on which carriers have the best discounts for you. Contact us to get free home insurance quotes and advice on insurance matters.