18 Common Homeowners Insurance Discounts To Know
Whether you’re currently in the market for homeowners insurance or you already have a policy in effect, you know that it’s a necessity. Not only does homeowners insurance give you the peace of mind to know that you’re covered in the event of an emergency, but some mortgage lenders will even require insurance as a prior condition to lending.
Still, in a best-case scenario, you’ll never need to file a claim or actually use your homeowners insurance in any way. With this in mind, it’s only natural to want to lower your insurance costs as much as possible.
The good news is that there are many different ways that you might be able to lower your homeowners insurance premiums. One of the easiest ways is to simply take advantage of the many different homeowners insurance discounts that carriers offer.
Below, we take a look at the most commonly-available homeowners insurance discounts so that you will have a better sense of what might be available to you. We also give you a number of tips that you can use to get these discounts.
Homeowners insurance discounts
1. Paperless discount
Many homeowners insurance carriers offer a discount if you agree to receive electronic monthly statements instead of paper statements by mail. While the discount isn’t typically significant, when paired with other discounts offered it can really help to lower your costs.
2. Paid-in-full discount
The paid-in-full discount is another one commonly offered by homeowners insurance carriers. To qualify, you’ll typically need to pay your premiums up front for the year, instead of opting into monthly payments. If you have the cash to do so, the paid-in-full discount can save you anywhere from 5% to 10% on average.
3. Loyalty discount
Most homeowners insurance carriers will reward you with a loyalty discount the longer you stay with the company. While the specific discount will vary from carrier to carrier, it tends to grow as more and more time passes. However, keep in mind that loyalty to one carrier isn’t always the best path forward — you’ll want to re-shop your insurance annually to ensure your rate is still the best.
4. Prior insurance discount
Many people think twice about leaving their current homeowners insurance carrier, especially if they’ve been with them for a long time, because they don’t want to give up the loyalty discount that they’ve earned. For this reason, many carriers offer what is known as a “prior insurance discount.” The prior insurance discount essentially rewards you for your loyalty to your prior insurer, and can help you avoid losing the loyalty discounts you were receiving.
5. Advance quote discount
You can often receive a discount on your homeowners insurance policy simply by getting an advanced quote. All this means is that you request a quote before the policy needs to go into effect — typically one or two weeks in advance, depending on the carrier.
6. Multi-policy discount
Does your carrier offer other types of insurance in addition to homeowners insurance? If they do, and you choose to purchase that coverage from them, you’ll usually earn a multi-policy discount that can help you save on both policies. Many carriers refer to this discount as a “bundle,” such as a home and auto bundle.
7. Claim-free discount
Some homeowners insurance carriers will offer a claim-free discount, which rewards you for hitting different milestones without having to file a claim. Depending on the carrier, this discount can also be known as a loss-free discount.
8. Homebuyer’s discount
Are you in the market for homeowners insurance because you’re about to buy your home, or because you’ve bought your home within the past year? Carriers might offer a homebuyer’s discount. They do this because they know most people don’t like to shop for insurance, so if they get you early on, they can expect to keep you. If this describes you, make sure you ask about the discount!
9. New home discount
Some homeowners insurance carriers offer a discount specifically for “new homes,” which are less likely to experience many types of damage simply because they are newer and built according to more recent construction codes. Though each carrier can define “new homes” differently, many will consider a home new if it was built within the last 10 years. Other names for this type of discount include “newer home discount” and “new construction discount.”
10. Accredited builder discount
Many insurance carriers have a network of specific builders or contractors who they approve. If your homeowners insurance carrier has this network, and you find you need work or repair on your home, working with a builder from their list can come with a discount.
11. Green home discount
If your home has been certified as a green home, usually by an organization such as the Leadership Energy & Environmental Design Organization (LEED), your carrier might offer you a discount on your homeowners insurance.
12. Protective device discount
Protective devices — like smoke detectors, carbon monoxide sensors, sprinklers, security systems, and other devices — lower the chances that a homeowner will need to file a claim or experience a loss. For that reason, many insurance carriers offer discounts to homeowners with these types of protective devices. You might also find these discounts spiked out by the device; for example, sprinkler discount, security system discount, etc.
13. Window protection discount
If you purchase and install impact-resistant windows, your insurance carrier might offer a discount. That’s because broken glass is one of the most common claims filed by homeowners, usually due to damage caused by a storm.
14. Fortified home discount
The fortified home discount is similar to the window protection discount mentioned above, but takes other factors into account beside just windows. If your home was specifically designed to withstand damage caused by severe weather such as high winds, hail, or hurricanes, your carrier may offer you a discount — again, because those features lower the chances that you will need to file a claim.
15. Roof-type discount
Claims to cover roof damage from severe weather (like high winds, hail, and fallen branches) are right up there with window damage as one of the most common claims filed against homeowners insurance policies. With this in mind, your carrier might offer a discount if you have a newer roof, or if you have a certain style of roof that lowers the risk of damage.
16. Non-smoker discount
If an inhabitant of a house is a tobacco smoker, that can increase the risk that the home might experience an accidental fire. For that reason, many insurance carriers offer a discount when all of the inhabitants of a home are non-smokers.
17. Secured community/building discount
Homes that are situated in a community with extra security, such as a gated community, might qualify for a discount. You may also qualify if you have a private subscription to a security service (see Protective Device Discount above).
18. Senior discount
Some homeowners insurance carriers offer discounts specifically for seniors. While each carrier can define “senior” however they wish, if the carrier does offer a senior discount, it will usually be available to homeowners who are 65 years old or older. For this reason, the discount is also sometimes known as the “homeowner older than 65 discount.”
How to get homeowners insurance discounts
Now that you know about all of the homeowners insurance discounts available to you, your next step will be to actually get those discounts applied to your policy. Here are some tips for getting the best discounts possible:
- If you’re buying a new policy… Always start by asking your insurance advisor what discounts you qualify for. If they don’t mention a discount on this list, mention it specifically to see if it’s available. You can also check the carrier’s website — most will list available discounts.
- If you already have coverage with a carrier… Ask about any additional discounts you might qualify for, which are not already being applied to your policy. If you know that you would qualify for a certain discount at a competing carrier, go ahead and ask them if they can match it. While there’s no guarantee, you’d be surprised how often they are willing to work with you. And to make sure you’re always getting the best rate, Matic can help you compare prices from 30+ A-rated carriers.
Here at Matic, our goal is to make it as easy as possible for homeowners to purchase the exact insurance policy they need, for the lowest price possible. That’s why we help you compare your options, including the different discounts you might qualify for. All it takes is answering a few simple questions and you can have a personalized quote for an affordable policy.