More on Home Insurance
More on Home Insurance
Insurance companies offer policyholders several ways to save on homeowners insurance, including discounts for bundling your home and auto policies or making your home safer.
Updated January 6, 2021
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Homeowners insurance covers your most important assets, including your house and all of your valuables — and because of that, it can be a rather expensive form of financial protection, but it doesn’t have to be. If you feel that you’re paying too much for home insurance, there are a few ways you can lower your rates, including:
Re-shopping your homeowners insurance annually and comparing quotes
Choosing a higher policy deductible and only selecting coverage types you need
Taking advantage of discounts and savings offered by your insurance company
Each insurance company offers their own discounts, and the amount you can save by, say, owning a newly constructed home or bundling your home and auto insurance will vary from company to company. Discount availability with certain carriers may also differ from state-to-state.
Keep in mind that saving on homeowners insurance isn’t all about discounts; it’s also important to understand how your insurance company calculates your initial policy rate. The location and age of your home, the coverage types and amounts you select, and your credit and claims history will all impact your rate. Certain insurance companies also simply offer cheaper coverage than others.
The first thing to understand about homeowners insurance discounts is that you don’t really “apply” for them. If your home meets certain criteria, or you bundle multiple policies through the same insurer, those discounts and credits will be automatically factored into your insurance premium when you get a quote and your policy goes in force.
Discounts can be specific to you and your policy, such as bundling, paying your premiums for the year in full, or paperless billing; or specific to your home, like protective devices and fortified home discounts for having a security system or hail-resistant roof.
If you recently installed a new roof or added a centralized security monitoring or fire alarm to your home, you don’t have to wait until renewal to let your insurance company know. If you’ve made improvements to your property, or plan to, communicate that to your insurer and get rewarded with lower rates.
Insurance companies will reward you with discounts depending on details related to you and your policy as well as your home. Be sure to check with your insurance company to see what discounts are available in your state.
Some of the most common homeowners insurance discounts include:
New home construction
Bundling home and auto
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Certain homeowners insurance discounts offered by insurance companies are specific to the policy and policyholder, including:
If you take out two or more insurance policies from the same company, your insurer may reward you with a bundling, or multi-policy discount. You’ll also have the added advantage of only having to deal with one insurance company for all your property insurance needs.
Bundling discounts generally offer the most impactful savings opportunities for homeowners. Policygenius customers save an average of 30% by combining their home and auto insurance under a single carrier.
Here’s a look at the best home and auto insurance bundles offered by Policygenius.
|Insurance company||How much can you save by bundling?||Notable features|
|Encompass||Up to 20%||Competes best on bundles in terms of pricing|
|Mercury||Up to 15%||Only available in 10 states|
|Metlife||Up to 10%||Bundles with Metlife GrandProtect include one bill for all of your policies and single deductible claims|
|Nationwide||Average of $646||Competes best on bundles in terms of pricing|
|Plymouth Rock||Up to 15%||Auto insurance bundles with Stillwater home insurance|
|Progressive||Average of 12%||One deductible for home and car claims|
|Safeco||Up to 15%||Competes best on bundles in terms of pricing|
|Stillwater||Up to 15%||Home insurance bundles with Plymouth Rock auto insurance|
|Travelers||Up to 12%||Additional savings if you bundle your home and car with other types of property insurance|
If you pay a year’s worth of insurance premiums up front, your insurer will typically reward you with a small discount.
If you’ve gone a number of years without submitting a homeowners insurance claim, your insurance company will reward you with a discount on your rates, usually called a claims-free or a no claims discount.
Homeowners associations are looked at favorably by insurance companies, as HOA property is generally surveilled and well-maintained, lessening the risk of theft and vandalism. Because of that, insurers will typically hook you up with lower premiums if you belong to an HOA.
If you’ve been using the same insurance company for five or more years, most insurers will give you a discount on future policies. While loyalty discounts are nice, you should continue to compare policies annually and make sure your home has the best possible coverage.
At Policygenius, we make it easier to compare and buy homeowners insurance online, and our licensed representatives can help steer you toward a policy that makes sense for you and your home.
Making modifications to your home can also impact your rates. If your home has certain safety features that better protect your home and the contents inside your home against certain perils like storms, fires, and theft, your insurer may reward you with lower premiums.
It's also common for insurers to offer discounts for modernized homes with designated “smart home” devices. Some insurers, like Travelers, even offer affiliate discounts for smart home devices bought through Amazon that you can then use for discounts on your Travelers policy.
A newly constructed home means new wiring, new plumbing, a finished basement, and a new roof. New homes are also generally cheaper to rebuild than older homes with obsolete features. If the insured property was built in the last five years, chances are your insurer will give you a discount on your premiums.
You’re typically eligible for discounts if your home has a centralized fire alarm, security monitoring, or fire sprinklers. Be sure to let your insurance company know about any safety or security features in your home, and if you recently had a protective feature installed, let your agent know immediately to get a discount on your premiums.
Fitting your home with storm-proof roof shingles, hurricane-resistant windows, impact-resistant garage doors, and steel doors and frames may net you a considerably large discount.
Pat Howard is a homeowners insurance editor at Policygenius in New York City. He has written extensively about home insurance cost, coverage, and companies since 2018, and his insights have been featured on Investopedia, Lifehacker, MSN, Zola, HerMoney, and Property Casualty 360.
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