Top 10 Secret Home Insurance Discounts: From an Industry Expert - YA
Top 10 Secret Home Insurance Discounts
Young Alfred here, your home insurance expert. Here are the secret discounts every homeowner should know when shopping for home insurance:
1. Recent Roof Update
While it depends on your roof type, most homes need a roof update every 20 years. For home insurance companies, nothing gets them more excited than a brand new roof on the property. Large discounts are given to homes with a roof update in the last 5 years.
2. Burglar + Fire Alarm
Insurance carriers want to know the authorities will be contacted quickly in the event of a theft or a fire on the property. A 30 minute shift in response time for a fire can be the difference between a $30,000 and $300,000 claim. Often carriers give a 2-8% discount for having a central reporting burglar and fire alarm.
3. Hail Resistant Roofing
If you live in a state with hail (TX, IL, CO, MO, NE, SC, PA, IA, SD, and KA) you will get a good credit on your homeowners insurance if you install hail-resistant roofing. This can knock 2-4% off your premium.
4. Storm Shutters
Not a huge discount, but every penny counts. Storm shutters can knock 1-2% off your final premium, especially in coastal regions.
5. Construction Type
Everyone knows the story of the 3 Little Pigs. Believe it or not, there is some truth in the story when it comes to home insurance premiums. The harder it is to blow that house down, the lower the risk of fire. Carriers look at home construction in 4 main categories with appropriate discounts:
|Frame (wood)||no discount|
|Brick Veneer (outer layer of brick)||2-7% discount|
|Masonry (solid stone/brick)||8-18% discount|
|Superior (concrete/fire resistive)||15-28% discount|
Note: Discounts here are measured in $premium/dwelling coverage limit. Expect higher dwelling coverage per square foot when stronger, fire-resistive construction materials like brick and concrete are used. This can increase the overall premium with a required increase in coverage limits.
6. Full Home Renovation (if home over 40 years)
It is no surprise that homes built in the early 1900s and 1800s may have more problems. However, older homes often go through a major renovation before a new home sale. If you are purchasing an older vintage of home, ask the seller for all update notes and make sure to include them on your home application for up to a 20% discount. The big ones are updates to the heating, electrical, and plumbing.
7. Hip Roof Shape
Hips don't lie. When an insurance carrier looks at a home with a hip roof:
The truth is, hip roofs are better at deflecting wind, less likely to leak, and in some states, like Florida, can fetch a 20% discount on your annual bill! In case you don't know what a hip roof looks like:
8. Good Credit
Depending on the carrier, your credit history can change the premium by up to 50%. Work on paying down those bills so the insurance company has faith you can pay down theirs.
9. No Claim History
The strongest predictor of future claims is if someone has filed a claim in the past. While not all claims are equal, carriers tend to over penalize liability claims, theft claims, and water damage claims. While wind and hail claims are more common and fire and lightening claims more severe, they are usually out of the control of the homeowner, so do not usually register as high a penalty. Obviously now claims at all means no penalty, and a nice discount.
10. Bundle (or not)
This one has been pounded into the minds of consumers: bundle to save a bundle! The truth is, sometimes it makes sense to bundle, and sometimes it does not. Bundling can sometimes save you as much as 30% on your total insurance bill. It all depends on where you live and your specific situation.
Now that you know all the secrets, it's time to let an expert find all the discounts your deserve:
At your service,