6 Homeowners Insurance Discounts to Know About
With Americans digging in against stiff economic headwinds, any way to save a buck or two while still getting good value on the dollar is a welcome development.
So it goes with homeowner’s insurance, a necessary, but often cost prohibitive commodity for any U.S. property owner.
Right now, the problem is that like most consumer commodities, homeowners insurance costs are on the rise. With wallets thinning out due to rising inflationary costs, homeowners need all the help they can get with a good homeowners insurance discount.
“Most all home insurance carriers are increasing their rates in 2022 due to inflation,” said Lauren McKenzie, an insurance broker at Learnandserve.org and A Plus Insurance, in Colorado Springs, Col. “Most companies like ASI and Travelers have seen a 3-12% increase in most states, and that’s just for the last week of June. Prices are expected to continue to climb, unfortunately.”
If a homeowner doesn’t live in a brand-new home and lives in a state with tougher insurance regulations, getting a good deal on insurance is n even steeper uphill climb.
“Premiums are increasing due to the inflationary issues related to materials to rebuild, which is driving up the insured value on properties which directly impacts premiums,” said Gino Clemente, an independent insurance broker and founder of Bearstar Insurance in Orange County, Cal.
Additionally, in state markets like California, homeowners looking for a discount on their home insurance may be disappointed – mainly due to external economic forces that raise the price of homeowners insurance.
“That’s primarily due to challenges with rate increases not being approved by state Depart of Insurance offices” Clemente said. “Along with environmental concerns, most of the big insurance carriers have tightened their underwriting rules. That’s made it even harder for older homes, homes considered in a higher fire risk area or homes with water claims to obtain good homeowners coverage.”
How to Get Cheap Home Insurance with Discounts
Whether you’re in a new or old home, there are paths to homeowner insurance discounts if you know where to look. Fortunately, insurance experts know where to find these solid homeowners insurance discounts and we can always help you find one. Here are the top ways to get a discount on your home insurance policy:
- Bundling Policies
- Choose a Higher Deductible
- Fortifying Your Home
- Demographics & Career
- Customer Loyalty
- Pre-loss Inventory Checks
1. Bundling insurance policies: The biggest discount available across all carriers continues to be the auto/home insurance discount.
“The auto and home insurance “bundle” will typically save the insured about 20% on both auto and home insurance,” Clemente said.
Clemente advises adding an umbrella policy to your household so you qualify for another discount. “By
stacking discounts you could save as much as 50% on your home insurance,” he added..
2. Opt for higher deductibles: In an era of higher consumer insurance premiums, insurance professionals are steering homeowners insurance customers to higher deductibles.
“By taking a higher insurance deductible, you’re reducing premiums,” Clemente said. “Just know that due to the market conditions on claims impacting eligibility to obtain coverage, you really don’t want to file a claim unless it’s a major situation.”
Most insurance agents will (or should) conduct a savings versus cost calculation to make sure the higher
deductible makes financial sense. “You don’t want to increase your deductible unless the savings justifies it,” Clemente added.
3. By fortifying your home: One recent trend in homeowners insurance is insurance companies offering discounts for policyholders who take measures to protect their homes from loss or damage or who live in safer gated communities.
“Some of the best discounts available also include those for installing security systems, smoke detectors, and fire extinguishers,” said Shaun Martin, chief executive officer of Denver Real Estate Solutions, in Denver, Col. “
4. Demographics and career: Insurance experts recommend looking for discounts based on certain personal or work characteristics.
“Some carriers give discounts for those of senior age, which can vary by company and state,” said Stacey Giulianti, an insurance specialist at Florida Peninsula Ins. Co., in Boca Raton, Fla. “Some insurance carriers also give discounts for work/career vocations. For instance, first responders or military veterans often qualify for homeowners insurance discounts.”
Giulianti recommends asking your agent or carrier whether you qualify.
5. Customer loyalty benefits: Many insurance companies offer a homeowner’s discount for longevity of being a customer.
“For example, a homeowner can earn a discount or deductible waiver for being a policyholder for five years,” Giulianti said.
6. Pre-loss inventory checks: One insurance policy measurement tool that helps consumers get discounts is a pre-loss home inventory.
“With a pre-loss inventory check, consumers can perform the task themselves or hire a professional,” said Dianne Flinter, owner of Insurance Inventory Pro USA, in Oakdale, N.Y. “A home
inventory is a photo collection with make and model information captured. A consumer can present their inventory report they complete which catalogues all their personal items pre-loss.”
A home inventory check ensures the consumer gets exactly what insurance coverage they need at the right price.
“Doing so can save thousands of dollars should the homeowner needs to make a claim,” Flinter said. “The homeowner simply needs to present the document (photo collection and list) of all items to the home insurer. There’s no need to hire a public adjuster or an attorney. Better yet, a pre-loss inventory helps consumers be their own best advocate at claim settlement.”
The Takeaway on Homeowners Insurance Discounts
Despite fierce economic headwinds in 2022, homeowners can find homeowner insurance discounts, but they’ll need to apply some due diligence and legwork to get the job done.
Get a big head start with the tips listed above, and see if you can make the smart move and get good discounts on your homeowners insurance policy.
