Most homeowners are well aware of the fact that adding a smoke detector or installing a security system can help cut some of the high cost of homeowners insurance. However, even the most attentive homeowner can miss some of the more obscure discounts available. Here is a list of some of the lesser known homeowners insurance discounts that you’re not taking advantage of- though you should be!
Choosing a Gated Community
The most common security discount is from installing a security system. However, did you know that your insurance company probably offers discounts for where you live? This is particularly true if you live in a gated community. Gated communities are appealing to homeowners insurance companies because it adds extra protection to your neighborhood, making it less likely that they will have to pay for your claim. You can usually save 5-20% for this credit.
Belonging to a Homeowners Association
Living in a gated community and belonging to a homeowners association go hand in hand. Insurance companies prefer when you belong to a homeowners association because there are often stricter standards in place than other neighborhoods, involving both security and appearance. The security is preferred because more secure neighborhoods are less dangerous, while keeping up on your appearance often means that you will not be able to leave home maintenance undone, leaving your house less susceptible to damage. This credit offers savings of 5-10%.
Being 55+
There are many things that come with age- wisdom, the ability to retire, and a homeowners’ insurance discount! The reason that insurance companies prefer those that are retired is because of the amount of time spent at home. When you are at home, it is less likely that you will be robbed. Additionally, it is more likely that you will notice a plumbing problem, gas leak, or other problems before they become disasters that can cost thousands. Most companies give a saving of 10-25% for this.
Completing a Home Renovation
Home renovations can include everything from rewiring your house to installing new pipes or a furnace. The reason that home renovations are an advantage in the eyes of an insurance company is because newer items are less likely to malfunction.
However, consider who you choose to the home renovation- you may find that your company ends up raising your rate instead of lowering it if you let your son come over and rewire your home! You can save up to 25% for home renovations. Check with your agent before you start a project to get an idea of what you can save, as well as how to tweak your project to maximize your homeowners discount.
Buying a New Home
If you choose to buy a home that has not had a previous owner, you can often save quite a bit on your homeowners’ insurance premium. New homes come with newer pipes, electrical wiring, furnaces, foundations, and more. This makes it significantly less risky for your insurance company to insure you because it lessens the chance that you will need to make a claim.
Additionally, new homes are generally inspected by professionals to be sure they meet zoning and other requirements before they are put on the market. By choosing a new home that has not had a previous owner, you can save as much as 25% on your insurance premium.
Now that you have an idea of the right questions to ask, get your insurance agent on the phone! If it’s after hours, or you can’t get ahold of anyone at the company, leave a message or contact them through their website. Most insurance companies, like Insurance Land, offer a way to contact them aside from a phone call, i.e. emailing, web contact form, or an instant messaging option. Taking advantage of some these discounts as soon as possible can really affect the amount you pay out of pocket for homeowners insurance.
The writer of this article Lautaro Martinez is a homeowner and freelance writer who contirbutes articles and insight into succefsully and effectively owning a home. If you wuold like to learn more about Lautaro you can check out his Google+ profile.