You Can Save Serious Money on Your Home Insurance Quote With Hidden Home Insurance Credits
Image: Pixabay

You Can Save Serious Money on Your Home Insurance Quote With Hidden Home Insurance Credits

home insurance credits are out there to grab, but you have to shop around a bit and get quotes from different insurance companies to save the most money

July 16, 2021

If you had a way to save money on your next home insurance quote, would you take advantage of it or let it go to waste? You would use it, of course, to save as much money as possible! There are a few hidden and lesser-known home insurance credits that can save you a lot of money on your insurance bill. Take a look at them and see if you qualify. You could find yourself saving hundreds of dollars.

claim-free home insurance history

Many home insurance companies offer credits for having no insurance claims, just like auto insurance companies give good driver discounts for behaving yourself. If you haven't filed a claim in a long time (or ever), ask for a discount.

bringing the wiring of an old home into the 21st century reduces your risk and gets you an insurance credit.

Electrical problems caused by old and faulty wiring causes a lot of home fires, resulting in hundreds of deaths and nearly $1 billion in property losses each year. Your insurance company doesn't want your risky wiring to result in a claim, so they'll often give pretty attractive insurance credits to upgrade your wiring. It's a pretty hefty investment and the credit depends upon the age of the home, so give your insurance company a call before you commit to anything.

Older homeowners are more attractive to homeowners insurance companies.

Most people don't think you get more attractive as you age, but your homeowners insurance company does! So if you're older than dirt, give your insurance company a call. Older home owners are less risky because they typically don't have a lot of wild parties or do crazy things. But older home owners are often retired, and retired home owners often spend more time at home where they can spot potential hazards in time to prevent significant damage. If no one is home, a gas leak, burst pipe, or smoldering appliance can do significant damage and cause a significant home insurance claim.

Insurance companies love gated communities!

Gated communities offer a little extra peace of mind to those living there. But home insurance companies are often happy to extend a home insurance credit just because you live in a gated community. Many thieves will avoid gated communities, opting instead for easier targets.

Being close to new infrastructure can save you money

North Carolina has been growing for a long time and things aren't always the same from one year to the next. If your home was once near open farmland and is now more urban, you're probably closer to a fire hydrant, fire department or police station. Home insurance companies eventually find out about the new fire station across the street, but unless you talk to an agent you probably won't get an automatic credit. So if the area around you changes, see if your home insurance premium will change.

Homeowners Associations (HOAs)can sometimes be annoying, but they can get you a home insurance discount!

Some people like HOAs. Some people hate them. But if your home is part of an HOA, you might save money on your home insurance. HOAs are considered less risky because neighborhood involvement helps to keep the neighborhood crime-free.

Want an excuse to quit smoking? You can get a home insurance discount.

Smoking is the number one cause of fire-related home deaths, so home insurance companies will typically raise rates if there is a smoker in the house. Of course, we're presuming you are honest when you answer the questions when getting a home insurance quote.

In the market for a home? Newer homes are often cheaper to insure.

It may seem counterintuitive, but a new home is less risky and therefore cheaper to insurance than an older home of the same value. New construction typically doesn't have many problems, and any problems are typically addressed by a builder under warranty. But older homes have seen a lot of wear and a lot of settling, which can lead to potential problems over time. Newer homes are also built to better building codes with more safety features, so the risk is lower. If you have ever been in an older home with a very narrow staircase you will understand!

Home renovations are a great way to refresh and lower your home insurance costs.

Just like new construction is less risky, a renovation can make your home less risky and therefore more attractive to your insurance company. A new roof can save you a lot of money on home insurance since it is the biggest factor affecting your home insurance premium, especially in areas prone to hurricanes or prone to hail. But talk to your insurance agent first before starting a project because some renovations may not reduce your home insurance premium. In fact, some can increase it. If you add a swimming pool, you'll go from one of the least risky homes to the most risky. On the other hand, if you remove your pool you can almost always get a home insurance discount. If you are making your home more valuable by adding fancy counters, new hardwood, or even an addition, it's going to cost more to replace and might cost more to insure. But you'll also make your home more valuable should you wish to sell, which could offset any premium increase. Your home insurance agent can give you ideas for things that maximize your savings.

raise your home insurance deductible.

Many people seem to miss this one, but it can really add up. Some home owners choose really low deductibles because they don't want to shell out a lot of money if they have to file a claim. But the average homeowner will only file a claim once every ten years, while others never file claims. So you could be spending a lot more money than you need to on home insurance just to keep your deductible as low as possible. Get a new home insurance quote and look at the various deductibles to see what your yearly savings could be.

shop around for new home insurance.

Home insurance today is competitive, so it's important to shop around in order to get the cheapest home insurance quotes. Not every home insurance company has the same rates, and some offer much better coverage for the same price. You can start with getting online insurances quotes to see which home insurance companies have the most competitive rates. Then you can get more detailed quotes that factor in each discount and credit you can get.

have the home insurance rating models changed?

Home values, neighborhood markets, and construction costs are changing constantly. When developing the models used to set your rate, home insurance companies take these carious things into account. If the rating models change, your home insurance premium could also change. Your home insurance company probably won't automatically lower your premium if the rating models change, but you can certainly call to see if your premium needs to be recalculated. You can even get an online home insurance quote from the same company using the same information as your current policy to see if it's different.

Go high tech to save on home insurance.

Installing a fire alarm and home security system can save money on your home insurance. But new sensors, such as water leak and gas leak sensors, are getting attention. Some sensors just signal a leak, but others will signal the leak and take steps to shut off the supply, which can prevent a lot of damage.