10 Homeowners Insurance Discounts You Can Receive

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  • 10 Homeowners Insurance Discounts You Can Receive

No one wants to overpay for homeowners insurance, especially if you qualify for credits or discounts without knowing it. To be sure you’re saving as much as you can, here’s a list of home insurance discounts that are widely available so you know which to ask for. Talk with your provider about these 10 discounts.

1. Home Insurance Discount for a Security System

Homeowners insurance companies typically offer discounts if you have a security system in your home. How much you save on home insurance with a security system varies by provider, but you can expect to get between 5% to 15% off your premiums.

Insurers like it when you have a security system because it reduces the chances that you’ll file a claim for theft or vandalism. Check with your insurance provider in advance to make sure the security system or surveillance brand you’re considering qualifies for a discount before deciding which company to work with, though. Most carriers will only accept a centrally monitored system, such as Ring or Nest, and not an old-fashioned burglar alarm that just makes noise to alert neighbors.

The upfront and subscription costs of a security system may offset your insurance discount in some cases. So, it’s best to combine it with other home security features, such as deadbolts on doors, smoke alarms or sprinklers around the house, and cameras, which could qualify you on their own for lower premiums. Having all of them is even better. 

Demonstrating home safety is always a positive to insurance companies. Generally, the more security features you have, the more you can save.

2. New Roof Insurance Discount

Even though it’s probably one of the biggest home renovation projects you can take on, upgrading your roof has more than a few cost-saving benefits. 

Not only will a new roof help protect you from weather damages or expensive leaks, but it may also help boost the value of your house if you decide to put it on the market. Primarily, though, we’ll focus on the insurance discount you can get for having an impact-resistant roof.

Several eastern coastal states and Texas require insurers by law to offer discounted premiums to policyholders who prove their roofs can withstand strong winds from hurricanes. You can do this with a wind mitigation inspection.

If you get a wind mitigation inspection done on your home and pass, you can save thousands on your premiums. In Florida, for example, the average rate for a $300,000 home with wind mitigation was $2,583 less than a similar home without wind mitigation. This is a 43% decrease.

How much you’ll save varies by your location and the age of your house, but it’s safe to say you’ll pay less for homeowners insurance if you have a roof with effective wind mitigation measures.

Just getting a new roof, in general, can help save on home insurance. When getting a quote, the insurance company may ask you how old your roof is. Generally, the younger your roof, the better it is for your insurance rate. You should tell your provider if you’ve upgraded your roof since you got your policy.  

3. Home Insurance Discount for Seniors

Some insurers may discount your premium if you’re over a certain age, 50 or 55 for example. More likely, though, is an insurance company offering you a discount if you’re retired. So, while this isn’t exactly an insurance discount for seniors, it’s a discount a senior person could be eligible for.

A retired person is likely to be at home more often than a working person, which means someone who’s retired is more likely to detect and stop an issue, like a fire or a broken pipe, soon after it happens. This mitigates damage and reduces the need to file a claim.

These discounts could save you up to 15% on your premiums. When getting a quote, you’ll almost always be asked if you’re married, too, which could reduce your rate. Married couples historically file fewer claims. Also, if your spouse is retired but you’re not, chat with your insurance agent to see if you still may be eligible for some sort of retirement discount. 

4. Homeowners Insurance Discount for Veterans

Most top insurance carriers offer discounts for active-duty members or veterans of the armed forces. Once again, it varies by provider and state, but you could receive around a 10% insurance discount based on your military status.

VA loans offer many perks, like exemption from private mortgage insurance, but they still require you to have homeowners insurance to protect your home. Be sure to check with your insurance company for any possible military discounts.

5. HVAC Upgrades

If you’ve been watching a few too many episodes of HGTV and feeling bitten by the renovation bug, some in-home upgrades could save you money on your homeowners insurance.

Your insurer will likely ask how you heat your home when getting a quote. If you indicate that you have a dated method of heating, such as a self-installed wood stove or a fireplace, you may pay more for homeowners insurance. If you get rid of these when doing renovations, you could qualify for a lower rate.

The same goes for your home’s electrical wiring. Dated systems consisting of aluminum or knob and tube make you much riskier to insure. Redoing your home’s wiring can reduce your rate.

Installing high-tech sensors that sense gas or water leaks pleases insurance companies, too. Some sensors even connect to your home’s internal systems and can work to shut off the water or gas to avoid major expenses and possible claims. 

6. HOA Discount

You might not have loved the idea of committing to an HOA when you first moved in, but your homeowners association could help lower the cost of your insurance.  

Being held to a higher standard of home maintenance usually signals to insurance companies that your house is less likely to incur damages or loss. Also, your HOA’s master insurance policy could alleviate some insurance burden from you or your provider.

Living in a gated community with a continuous patrol could benefit you, too. Some insurers ask about this when you’re getting a quote. If they don’t, mention it to your agent.

7. Loyalty Discount

Many insurance providers offer loyalty discounts for sticking with them after so many years. It varies by company, but you probably have to hit a certain year milestone, such as five or ten years with the carrier.

The amount of the discount varies by company, too. When you’re comparing quotes online, an insurer’s loyalty discount may not be evident right away since you wouldn’t qualify for it immediately. But, it could be worth it to look into. Many providers offer them, and you could end up saving over 10% on premiums after just a few years.

8. New Home Discount

A brand new home has new everything – roof, pipes, windows, etc. – and it’s up to the latest building codes. New houses are just less likely to have issues that can lead to claims, which is why insurance companies typically offer insurance discounts on them.

You can save roughly 10% to 20%, if not more, on premiums if your insurance company considers your home new. It varies by provider, but you could qualify if your home is under 3, 5, or 10 years old, or they may offer different discounts based on age.

9. Claims Free Discount

Filing a claim is what your insurance is for, and your provider should always be ready and willing to help you. But claims cost insurance companies money. So oftentimes a carrier will reward customers who don’t file claims.

If you’re with one company for so many years and you’ve never filed a claim, they may discount your premiums. Again, the amount of time and the amount of the discount varies by insurer. Some companies advertise over 20% discounts for not filing claims, though.

This is also why it’s important to fully understand the coverages in your policy. You don’t need to file a claim for every little thing. If you’ve experienced damage that amounts to less than or just over your deductible, it isn’t worth it to file a claim.

You can usually cancel claims after you file them, but it could still show up on your insurance record if you canceled it or if it was denied. Unnecessary claims could nullify a claims-free discount, and they could raise your rates.

10. Bundling

We’ll round out our list of home insurance discounts with a potentially well-known yet still noteworthy homeowners insurance discount: bundling. Having one provider handle more than one of your policies, home insurance and auto insurance, for example, is called bundling.

Usually, a carrier will give you a discount for trusting them with so many of your insurance needs. The extent of the bundling discount varies by company, but it’s not unheard of to save 25% on your premiums when doing it.

It's Time to Switch Your Homeowners Insurance

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The editorial content on Clovered’s website is meant to be informational material and should not be considered legal advice.

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