Look For These Home Insurance Discounts

Mortgage payments, property taxes, utility bills, and home insurance can all eat up a significant portion of your budget. That's before you consider lawn care, maintenance, or your various streaming services. (Don't worry, we're not here to tell you to uninstall Netflix. Alternatively, Amazon Prime, Disney+, Hulu, Discovery+, and HBO Max are available.)

A home insurance policy is one place to start if you want to save money on home expenses. According to the National Association of Insurance Commissioners' 2020 home insurance report, the average cost of a standard home insurance policy (called a HO-3) for coverage between $300,000 and $399,000 is $1,272 per year.

Discounts on home insurance can help you put money back in your pocket.

How to Find Home Insurance Discounts

One of the simplest ways to obtain a home insurance discount is to simply request a discount review from your insurance agent. Your home insurance provider may be unaware of recent changes that could qualify you for discounts. For example, if you recently installed fire alarms or a security system in your home, you may be eligible for a safety discount.

Comparing quotes from different home insurance companies is another great way to find new home insurance discounts. Discounts and rate structures vary between insurance companies. Comparison shopping is an excellent method for locating low-cost home insurance (and also cheaper car insurance).

Look for These Home Insurance Discounts

Your home may have features that can help you save money, such as:

  • Discount on new or renovated homes. Because upgraded systems like wiring and plumbing are less likely to fail and result in an insurance claim, newly built or renovated homes are frequently eligible for discounts.
  • Discount for disaster preparedness. If you live in an area prone to severe weather, your insurer may offer a discount if you take precautions to avoid damage. Storm shutters, reinforced doors, and shatterproof glass, for example, can all help to reduce wind damage.
  • Discounts for safety and security. This typically applies to smoke detectors, fire extinguishers, fire alarms, burglar alarms, sprinklers, and exterior door deadbolts.
  • Proximity to a fire hydrant or a fire station. If you live near a fire station, your insurer may give you a discount.
  • Roof age discount: Roof repair costs are a major headache for insurers. Some companies, such as USAA, provide discounts based on the age of your roof.

Other Discounts to Keep in Mind

The features of a home aren't the only things that can get you a discount. Here are some examples of common insurance discounts:

  • Discount for multiple policies. Buying more than one type of insurance from the same company, also known as "bundling," is typically one of the best discounts you can get. A common multi-policy discount is combining auto and home insurance, but you can also combine home insurance with life insurance, RV insurance, motorcycle insurance, and other types of insurance.
  • Discount on umbrella packages. If you also purchase umbrella insurance, you may be eligible for a special discount.
  • Discount for multiple homes. You can usually get a discount if you insure more than one home with the same insurance company.
  • No-claims discount. If you don't file any claims for a certain period of time, your insurance company may give you a discount.
  • Discount for advance quote: Some insurers, such as Progressive subsidiary American Strategic Insurance, will give you a discount if you get your price quote four days or more in advance.
  • Insurance payment discounts. You can typically get a small discount for paying the bill in full or going paperless.
  • Discount for loyalty. Customers who have been with an insurer for a number of years may be rewarded.
  • Military discounts are available. You may be eligible for a discount if you are a current military member, a veteran, or the spouse or child of a military member.
  • Employment, organization and association discounts. Your insurer may offer a discount for certain occupations, such as educators. You might also qualify if you are a member of a union, organization or professional association.

Other Ways to Save on Home Insurance

In addition to home insurance discounts, consider the following cost-cutting strategies.

  • Increase your home insurance deductible. A deductible is the amount of money you must pay out of pocket before your insurance company will pay your claim. The higher your deductible, the lower your premiums will be. Just make sure you can afford a high deductible if you need to file a home insurance claim.
  • Maintain a good credit rating. According to FICO, approximately 85 percent of home insurance companies will consider your credit-based insurance score when determining rates. You can raise your insurance score in the same way that you would raise your regular credit score.