Purchasing home insurance is one of the most important things you can do to guard against a financial loss, but insurance can be expensive. Finding ways to earn discounts on your policy can help you lower the cost of your policy while keeping you well protected.
1. Multi-Line Discount
Bundling services shouldn’t be reserved for your phone or internet provider. When you bundle multiple lines, or different kinds, of insurance policies through your insurance company, you can receive substantial discounts of around 20%. As a bonus, you can often save money on your auto insurance as well if you carry it through the same company. Try pairing your boat, auto, home, and more to discover double-sided discounts.
2. Claims-Free Discount
Insurance is all about risk. One way your insurance company decides how much to charge you for insurance is to determine how much of a risk you are. If your company thinks you are more likely to make claims on your home insurance policy, they will charge you more. Avoid making claims on your home insurance policy unless you have a big loss; the longer you go without claims, the lower your insurance rates can be. Most insurance companies look at the past three years of your claims history to determine discounts.
3. Marital Status Discount
Even in today’s day and age of lifetime partners and single parents, being married is often seen as less of a risk than being single. Maybe it’s because statistically, married people earn more and can afford to pay small losses on their own without turning to their insurance coverage. Regardless of the reason, being married can earn you a small discount of about 5% on your insurance policy at some companies.
4. Protective Devices Discount
Protecting your home makes it less likely that you will have a severe claim on your insurance. If you have smoke alarms in your home, they can alert you to fire sooner; alarm systems can scare away would-be robbers. Adding these devices to your home can give both you and your insurance company some peace of mind; and most insurance companies are more than willing to reward you with discounts on your policy.
5. Affiliate Discounts
Don’t overlook those insurance advertisements you get every time you renew your membership in your alumni or professional organization. Including these ads with their membership materials might mean that your organization is an affiliate of the advertised companies; and these insurance companies may in turn offer you a discount on your insurance for belonging to your organization.
6. New Home Discount
Newer homes have to meet newer building codes, which are stricter than the requirement of years past. Newer homes are often constructed with fire-resistant materials, safety devices, and other precautions that can lessen how much damage is done to your home if something happens. Because your insurance company is less likely to pay out big bucks if there is a loss, you can usually cash in with a discount on your policy.
From multiple policies to affiliate discounts, there are several ways you can lower the cost of your home insurance without lowering the amount of coverage you carry. Ask your insurance agent how you can earn discounts on your policy, and don’t be afraid to shop around for something better.
Laura Ginn hopes that the advice above has been useful. She writes about everything from how to save money to how to make home insurance claims and she hopes to make insurance easier for everyone to understand.
Image courtesy http://www.flickr.com/photos/mladjenovic_n/3231390927/