What products qualify for a homeowners insurance discount?

Your house is most certainly the most costly — and maybe the finest — investment you will ever make. As a result, you want to safeguard it, which requires a suitable homeowners insurance coverage.

However, such security comes at a cost. In 2019, the most recent year for which we have data, the average yearly premium for US homeowners was $1,272. Costs may be twice as expensive in other states, particularly those notorious for extreme weather.

Fortunately, there are various things you can take to maximize the value of your home's insurance. We'll look at several of them here and explain which house insurance discounts to request in order to save significantly on your premium rates.

What can I do to save money on my house insurance?

Taking advantage of the home insurance discounts that most insurance companies provide is one of the greatest methods to reduce your premium rates. Enquire with your agent about house insurance discounts to ensure that you aren't losing out on any that are available to you. The majority of these save you a tiny percentage of your insurance rate. They can add up if you acquire more than one.

Commonly requested home insurance reductions

While some suppliers provide unique savings, many companies give identical options. Here are some of the most typical discount alternatives available to suppliers. Check with your insurance carrier to see whether you qualify for these or any other special savings.

Roof replacement

Roof replacement can be a costly prospect, costing anywhere from $4,000 to $15,000, but there are various ways to save money with roofing coupons. Some firms provide a minor homeowner discount for a roof replacement; others require you to use impact-resistant roofing materials that can withstand hail damage, such as Class 4 heavy-grade modified asphalt and shake shingles.

The upside here is that not only do you gain savings each month, but you will be less likely to file a claim on roof damage since your roof may be more resistant to weather-related damage.

System of security

A security system protects your house and provides you with peace of mind. It can also help you save money. Many insurers provide security system discounts, which are among the most frequent.

USAA, for example, collaborates with ADT to supply professionally fitted security systems and then offers you a discount on your premium in exchange. This homeowners insurance reduction may apply to anything from a door sensor to a full-scale, centrally controlled system.

Smoke detectors and fire alarms

Fire damage claims are by far the most expensive in the United States. The typical fire or lightning damage claim exceeds $68,000 — and your insurance provider would prefer not to pay out on such a hefty claim. As a result, it is in their best interests to provide a home insurance discount for a functional fire alarm.

Even basic smoke detectors strategically installed around your house may qualify you for a discount. Adding smoke detectors is also one of the cheapest methods to save money on insurance, as smoke detectors range in price from $10 to $50. This is a no-brainer when compared to the thousands of dollars required to build a sprinkler system. Most insurance companies need at least one detector per floor.

If you're looking for a new house, keep in mind that living near a fire station or a hydrant is one of the elements insurance companies evaluate when establishing your premium cost.

Plumbing and electrical improvements

Upgrading your plumbing and electrical systems is almost always a good idea, particularly if you live in an older home. As a result, your house is safer, and fires and water damage are less likely to occur as a result of defective home systems. Farmers Insurance, for example, gives an average of 6% off if your plumbing is replaced during a makeover. Overhauling your electricity saves you another 2%.

Because replacing plumbing and electrical is an expensive undertaking, you're unlikely to attempt it unless you're performing the extensive renovation. If you want to remodel in the near future, inquire with your agent about this discount.

System of water safety

Highly rated insurers, such as Amica, are now providing homeowners savings if they have a system in their house that automatically checks for water or gas leaks. Because these leaks commonly occur in areas of your house that you may not frequent, such as a basement, leaks can go unnoticed for a long time – which is unsafe and can result in a high-cost insurance claim.

Sprinklers

It's simple to understand why insurers are willing to reduce your price if you have a sprinkler system. Sprinklers, according to the National Fire Protection Association, are a tried and true method of protecting lives and property from fire. Smoke alarms are useful and may qualify you for a discount from some businesses, but having an automated, functional sprinkler system improves that discount, takes no maintenance, and might save your life. Progressive, for example, offers a discount for installing one.

Heating replacement

Upgrading your heating and cooling systems, like plumbing and electrical, makes your home more pleasant and safer, with a lower risk of fire. Although it is a costly job, costing between $4,000 and $20,000, it can result in both insurance savings and much cheaper energy expenditures.

Excellent credit rating

In most states, having a credit score of 700 or more is taken into account by your insurer when calculating your rate quote. Your prospective insurer will perform a soft credit check and will use your credit-related information and behaviors, as well as information about your previous claim history, to calculate what is known as an insurance score. This score affects your premium expenses and is used to assist predict your chance of submitting a claim.

Although it may be included in your initial quotation, it's worth asking the agent if there is an additional reduction for your credit score, especially if it's on the higher end.

New development

Another popular discount is for newly constructed or completely refurbished homes. Insurers think that because a new home has modern systems and materials, it should be less prone to fire or other calamities than older ones.

Make this work for you by finding out whether your firm provides discounts. Amica and Allstate are two firms that provide it. Although you can save up to 25% on a new home at first, keep in mind that this discount may diminish or disappear as your home matures.

Masonry

Because masonry does not burn, your quotation may be cheaper if you have a masonry home rather than a wood-frame house. As with your credit score, your potential insurer will most likely consider this when writing your initial quotation - even if it's a basic online quote. If you own a brick or other masonry house, request this discount while speaking with an agent.

Construction that is fire resistant

More fire-resistant construction materials are being introduced to the market on a daily basis, and they may be specified whether constructing a new home or remodeling an existing one. Class A materials, such as fiber-cement roof shingles, can result in savings of up to 20% on your insurance.

With the growing incidence of wildfires in the Midwest and West, more providers are promoting flame-resistant products. For example, the National Fire Protection Association's new initiative Firewise USA is a collaboration with USAA insurance to provide discounts for fire construction in 10 wildfire-prone areas.

Windows that are hurricane resistant

Although not as frequent as other homeowner discounts, certain companies, like Allstate, may give you a discount if you have hurricane-resistant windows or storm shutters that can cover the windows in the case of a hurricane or heavy winds. Storm shutter installation can cost as little as $500 for plywood shutters and as much as $10-20,000 for roll-down shutters.

Unless you live in a hurricane-prone location, the cost is probably not worth it. If you do get hit by a hurricane, storm shutters can save your life.

Garage doors with impact resistance

Installing impact-resistant garage doors, particularly ones without glass, may result in a discount in hurricane-prone locations such as Florida. In reality, Florida insurers are obligated to provide discounts for opening protection, which refers to openings in your home such as windows, doors, vents, and skylights that have wind-resistant elements installed.

To qualify for this sort of reduction, your doors and other openings must normally be made of impact-resistant materials that can endure hurricane-level winds. This discount is only offered in coastal states prone to windstorms, not nationally.

Doors and frames made of steel

Steel doors, often known as impact doors, are comparable to impact-resistant garage doors. Steel doors, which can endure gale-force winds, are composed of steel or fiberglass with polyurethane foam cores. These doors often featureless glass and stronger hinges and doorknob locations.

Steel doors are more effective against burglary since they are intended to withstand significant impacts from the outside. In places where wind storms are common, such as Florida and Texas, having these types of doors can occasionally result in a discount.

The main point

There are several deductions available to help you reduce your premium payments. Others are frequently accessible based on who you are: for example, if you are a senior and retired, or if you are married (depending on your state). When you combine your homeowner's and vehicle insurance, you normally get a discount, and some insurers provide a "welcome" discount for joining up.

You must consult with an agent to discover how many discounts will apply in your circumstance. Examine when you begin a policy and when you remodel. Experts advise you to evaluate your insurance once a year to see whether any new conditions entitle you to an additional discount or two. By being proactive, you may be able to obtain coverage at a lower cost.