10 Ways to Save on Home Insurance!
Every homeowner needs insurance, but not every homeowner gets the most value out of their money. There are many items within a policy that affect the premium we pay (and are out of our control), such as: geographical region, the rebuild cost of the home and our personal insurance history. However, there are many things we are in complete control of, like allowing the insurer to do a soft credit check, having monitored alarms installed in the home, or disclosing you are a non-smoker. Below are the top ten ways homeowners can save on their home insurance!
1. Monitored Alarm – If you have a home security system, you may be eligible for a discount on your home insurance. An insurer can deem you less likely to file a claim since your risk of a break-in decreases by installing an alarm system. In addition, insurance companies recognize that you are taking precautions against an insured loss.
However, not all home security systems can lower home insurance premiums. Only security systems that are monitored by a third party are eligible for discounting. The company that installs, and monitors, the security system is often a reputable third party and can be used to save on insurance. Homes with central monitoring, which refers to a centralized security alarm system through which the homeowner is notified in case of an alarm, are also eligible. These types of alarms are connected to police departments (or third-party security companies) and usually allow you to check camera footage on your phone from anywhere in the world.
2. Claims Free Discount – If you are a homeowner, or renter, and have been claims- free for some time, you can receive a discount on your home insurance premiums. This discount is normally based on the number of years you have been claims-free while having continuous insurance in force (regardless of the address or whether it was a home, condo or tenant policy). Most insurers tend to offer a claims free status once you have carried property insurance for 3 years with no claims.
3. Credit Consent – By allowing an insurance company to run a soft credit check on you, most insurers will offer up to 10% off your premium. If you have a good credit rating, an insurer may give you a discount on your premium since a good credit rating can indicate that you are financially secure and less likely to file a claim.
Note that your credit score won’t be affected by an insurer running a soft credit check, insurers only use this information to determine the probability of a future insurance claim. In addition, the insurer will not increase premiums based on your rating, however, they may not offer monthly payment as a premium payment option.
4. New Home Discount – If your home is 1-10 years old you can see savings immediately as insurance companies consider newer homes a lower risk. By having new roofing, plumbing and electric, it reduces the chances of leaking, flooding and fire, respectively.
5. Mortgage Free Discount – If you have no mortgage outstanding on your home, you can see a savings of up to 10% depending on your insurer.
6. Increase Your Deductible – If you increase your policy deductible (the amount you pay in the event of an insured loss), your premiums will decrease. Instead of having a $1,000 deductible on your home insurance, raising that amount to $2,500 can have a significant impact on your premium. If you decide to take on more of the risk (by agreeing to pay more in the form of a deductible in the event of a claim) then the premium can be drastically reduced. It is important to make sure you are comfortable with your deductible as you will be required to pay it in order to make a claim through your insurance.
7. Mature Citizen Discount – Most insurance companies will offer a specific mature citizen’s discount, while others automatically factor your age into the premium amount. It is good to check with your broker before proceeding with your homeowner’s policy.
8. Bundling Discount – Insurance companies tend to offer discounts for clients who bundle their home and auto insurance together. Before renewing your home or auto insurance you should contact your Alteri agent to see if a bundle discount is available.
9. Non-Smoker Discount – Insurance is all about risk! Those who smoke have a higher chance of smoking inside of their homes, which presents a higher risk than non-smokers. If you live in a non-smoking household, then let your broker know as their may be a discount available. You can save up to 10% with certain insurance providers.
10. Pay Premiums Annually – I would highly recommend paying home insurance premiums in one shot if you are able to afford it. Most insurance providers charge a 2%-5% interest on the premium amount in order to finance the policy on a monthly basis.