Best homeowners insurance discounts

What are the best homeowners insurance discounts?

The best home insurance discounts depend on your unique circumstances, but the good news is that they are often relatively easy to obtain if you qualify. Since homeowners insurance discounts can make a notable difference in your premium, it could be worthwhile to review discount opportunities each year before your policy renews or if you experience a big change, like installing a new roof or upgrading your security system. Bankrate put together a list of some of the more popular discounts available to homeowners.

Early quote discount

When you get a quote for homeowners insurance with a future effective date, you may be eligible for an early quote discount. For instance, if you get a quote today for a home you intend to close on in several weeks, you may qualify for savings. It can also apply if you are planning to switch carriers and you make the effective date of the policy match your current policy end date, which is a week or two away. Details vary, so be sure to check with the insurance company.

Claims-free discounts

Homeowners who have not filed a home-related claim with any insurer within a specified period, such as three or five years, might be eligible for a claims-free discount. Even if a homeowner switches their policy to another insurance provider, it may still be possible to earn the discount. A first-time homebuyer, however, might not be immediately eligible for this discount.

Safety discounts

Numerous potential discounts fall under the safety discount umbrella. A safety discount could apply if a homeowner has an anti-theft or security alarm system installed or takes fire protection measures, such as installing smoke alarms or a fire extinguisher.

Multi-policy or bundling discounts

Purchasing a homeowners policy and another type of insurance policy with the same insurance provider could mean significant savings on homeowners premiums. Typically, bundling your car and home insurance policies will net you the biggest savings, but the discount percentage available will vary by provider and the type of homeowners insurance you have.

New home or new buyer discounts

Several insurance carriers offer a discount if a homeowner purchases a new construction home or is a first-time homeowner. The number of years a home may qualify as a new home varies from one provider to another. Even if a home is not brand new, you could still qualify, so be sure to ask your insurance agent. And if this is your first time buying a home, mention that to your insurance agent when getting quotes for your policy, as well.

Employee or military discounts

Special home insurance savings opportunities are often available for current or former military members. Other professionals can sometimes save, too — some companies offer savings to teachers, government employees and more. Each insurance provider that offers this type of discount will have its own list of professions that qualify for added savings, so it’s important to verify whether these discounts are available and what the eligibility requirements are when you get quotes.

Restoration discounts

Another home insurance discount that is often available is one for restoring a home. Homeowners who purchase an older home and make updates to meet current construction standards can often benefit from this type of discount. However, keep in mind that a restoration discount is generally only applied when almost all the systems have been replaced in a home, such as electrical and plumbing.

New roof discount

Roof replacement can cost a substantial amount of money, and a damaged or aging roof can pose a costly risk to homeowners insurance providers. But if you choose to replace your roof out of pocket, a new roof discount may apply. And if you have recently purchased a home where the roof was replaced prior to you moving in, be sure to inquire about the discount and whether the roof’s age makes it eligible.

Automatic payment and paperless statement discounts

Opting to have your home insurance premium automatically deducted from your bank account can often result in additional savings. There may be even more savings if you elect to receive paperless statements, too.

Discounts for retired people or seniors

A perk of getting older is potentially earning home insurance discounts. Some insurance providers refer to this as a senior, mature or retired homeowner discount. Such discounts are sometimes justified by homeowners staying closer to home or inside the house regularly, which may help deter crime and allow them to spot other potential problems sooner.

Smart home discounts

Smart home insurance discounts reward you for installing the latest technology to keep your home safer from possible fire or theft. Discounts for smart home technology might include savings for installing upgrades such as a smart thermostat, gas and water shutoff sensors or even the Amazon Echo Dot. Check with your preferred insurance provider to see what, if any, smart home discounts it offers to homeowners. Some insurance companies even partner with smart home technology companies, and you might be able to score a free or discounted smart home device.

How do home insurance discounts work?

Home insurance discounts are essentially financial rewards that insurance companies offer homeowners who take steps to mitigate risks. These measures not only protect homeowners but also decrease the chances of an insurer needing to cover large claims. To qualify for discounts, homeowners must meet the required underwriting guidelines, which vary between carriers. The criteria could range from being a senior citizen to having few or no prior claims to installing a new roof or safety device.

Getting the best home insurance discounts starts by reaching out to your insurance provider to learn about the opportunities most relevant to you and your home. Keep in mind that insurers can add or modify discount opportunities over time, so regularly checking in with your provider could optimize your savings.

Other ways to save on homeowners insurance costs

You may be able to reduce your homeowners insurance costs even further with some well-thought-out tactics. Remember, it's crucial not to skimp on essential coverage to save cash — it might lead to bigger expenses if a disaster strikes. Here are some money-saving options that might help lower your premium:

• Get quotes for various deductible amounts to find the one that works best for you
• Install a security system (note that you may want to have your agent determine how much it can save you before committing to the purchase, though)
• Consider bundling your auto and home insurance
• Improve your credit
• Eliminate high-risk items like swimming pools and trampolines

Frequently asked questions