If homeowners' insurance is taking a bite out of your wallet, you're not alone. A recent study by ICE Mortgage Technology found that property insurance rates jumped nearly 70% in the past five years. In fact, the average home insurance cost now runs a cool $2,370 annually. Tack that onto a monthly mortgage and property taxes, and it's no wonder that homeowners are looking for relief.
Home insurance discounts may not eliminate your premiums, but they can significantly reduce them. In this guide, we'll look at discounts you may qualify for and explore other ways to save.
Common Home Insurance Discounts Every Homeowner Should Explore
Here's a well-kept secret: Insurers don't automatically apply discounts to your policy. It's a little like car or house shopping. There's a sticker cost, but you can negotiate a lower price with a little haggling.
To get the best rates, you'll want to ask your rep about insurance discounts for homeowners. Most insurance companies also list available savings on their website.
House insurance discounts typically fall into one of three categories.
Bundling Home and Auto Insurance
Are your vehicle and homeowners' insurance policies with the same company? You may qualify for bundled savings. This type of discount rewards customers for insuring their most costly items with the same provider.
Besides extra savings, bundling is also convenient. Instead of several insurance bills from different companies, you'll pay one bill to a single provider.
Safety and Security Discounts
Home safety features that reduce claim risks can lower your policy costs. Security monitoring systems deter would-be thieves. Smart home devices such as video doorbells and smart locks are also looked on favorably by insurers.
To limit fire risks, install fire sprinklers and keep extinguishers throughout your property. Homes in wildfire-prone areas, such as Oregon, Texas, and California, particularly benefit from these safety features.
Loyalty, Claims-Free, and Other Customer Rewards
Are you a long-term customer with your insurer? Ask about a loyalty discount for house insurance. Like any business, insurance companies like to hold onto their regular customers. They may extend you savings if you've been with them for several years.
Having a claims-free history can also reduce premiums. If it's been over two or three years since your last homeowners' insurance claim, bring that fact up next time it's time to renew your policy.
Working in certain professions, such as the military or education, can qualify you for savings. Seniors may be eligible for age-based discounts.
How To Maximize and Stack Your Discounts
For maximum impact, take advantage of every discount available to you. Insurers allow you to combine multiple discounts at once. Each discount lowers your premium, potentially saving you hundreds of dollars.
Are home enhancements on the horizon? Maybe you want to add a pool or renovate the kitchen. Major upgrades enhance property value, which can increase your premiums.
To avoid major rate fluctuations, align the upgrade with discount eligibility. For example, if you're six months away from qualifying for the claims-free discount, you could wait on the renovations. Once the date passes, the new discount could partially offset any rate increases.
It's good practice to review your home insurance policy on an annual basis. While it may not sound like the most exciting way to spend a weekend morning, this small habit can help you stay on top of savings opportunities.
During your annual review, verify that you don't have any changes to your living situation or property. For example, if you've completed recent home upgrades or purchased a few valuables, you'll want to make sure your policy covers them.
Also consider your deductible. A higher deductible lowers policy costs, but it also means more out-of-pocket expenses if you have a claim. Choose a deductible that you'll feel comfortable paying if something happens to your home.
Compare Quotes To Find the Best Savings Opportunities
Don't feel tied to a specific insurer, even if you're a long-term customer. There are lots of companies out there vying for business. When it comes time for a policy renewal, ask for quotes from multiple providers.
Decide on your coverage needs before approaching insurers. Consider your home's worth, the valuables you want to insure, and your deductible range.
Know that some insurers are moving away from a flat deductible in favor of a percentage amount. You'll want to work out what percentage you can afford. For example, if your home's value is $350,000, and you have a 5% deductible, it's $17,500 to file a claim. Percentage deductibles are more common in areas known for severe weather events.
Cheap home insurance companies such as Progressive and Liberty Mutual have robust discount programs. Progressive is known for its excellent bundling discount, which saves customers an average of 7%. Discounts are also available for new home purchases and properties outfitted with the latest security features.
Liberty Mutual offers a multi-policy discount, too. It also features an early shopper discount for homeowners looking for new coverage before their current policy expires.
Start Saving With Customized Insurance Comparisons
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