Saving Money on Your Home Insurance

Many homeowners looking to save a few bucks on their insurance only look at the obvious things like adding smoke detectors or a security system. They may even enjoy the benefits of having their auto and home insurance provided by the same company, as this usually garners a discount. However, is there more that we could be doing? The short answer is, absolutely yes!

Property insurance companies have a wide array of lesser-known discounts that could save homeowners up to twenty-five percent on their insurance policy. The insurance industry may seem like an evil entity at times, as if they are just there to take your money and pay claims. The fact is that they are more focused on preventing claims than anything else. This can lower everyone's cost, especially the cost incurred by the homeowner.

Here a few of these hidden credits that your agent may offer:

Gated Community

If you live within a gated community, you undoubtedly have peace of mind. However, your insurer will share this feeling of security and may offer a discount for this barrier between you and potential home invaders. Many people don't realize that where they live affects their insurance costs to a large extent. If a person lives in a portion of town that is more susceptible to crime and theft, they will surely pay a higher rate. Conversely, those living in a gated community or near to a firehouse often can receive a credit on their policy.

New Wiring

Want to cause a panic with your agent? Give them a call and tell them that your son's teenage friend just rewired your home last weekend. Watch how quickly your rate goes up. It is fairly simple in the eyes of an insurer; a house with older wiring means a higher risk of fire. Each year in the United States there are over 67,000 house fires, nearly 500 deaths, and over $850 million worth of property damage due to these fires. Depending on how old your home is, you may qualify for an insurance credit if you upgrade your wiring.

Claim-Free

This is a fairly new discount, yet can save the most money. This is the homeowner equivalent to a good-driver rebate for auto insurance. It is fairly simple to understand; a lack of claims leaves more money in the pocket of your insurer, and they may be willing to share a bit of the savings with you by cutting your premium a bit. A person without a claim for ten years can see a discount of up to 20 percent.

By Nick Muller