How Much Can You Save with Discount Home Insurance?

Because home insurance companies must manage risk for thousands of homeowners, many companies use discounts as incentives to increase business as well as keep their premium rates low for items which decrease the company's exposure to risk.

One of the most common reasons home insurance companies will give policyholders a discount is when they are informed that a smoke detector, fire extinguisher, burglar alarm or deadbolt locks have been installed on the property and reward them with discounts of 2-5% for each improvement. The discount for improved security on your premises could range from 5-20%. If you choose a central alarm system to provide extra protection, this move could save you an additional 15-20% on your annual premiums which can add up to hundreds of dollars.

For the families that have employees who live in their home, several home insurance companies give a 2% discount because they view this as a security improvement: the presence of a individual in the home at all times reduces the chance of robberies.

Other companies will discount home insurance by 8% for policyholders who install a sprinkler system, a 5% discount for the installation of external motion detectors or closed-circuit TV cameras.

Homeowners who build or purchase homes made from fire resistant materials such as brick or concrete they can enjoy discount home insurance with a 15% credit for the inclusion of walls, roof, floors and ceilings that are made from non-combustible materials.

Discount home insurance for a new home is pretty much the standard, but for homes that are less than 10 years old there are only a few companies where this brings a lower rate. On the other hand, if you have upgraded the major operational systems in your old home; 15% off of your premium is your reward for the renovations to your electrical, heating or plumbing systems.

The insurance industry is extremely competitive and the companies are constantly vying for business by offering incentives to lure customers from their competition. One incentive that many companies have found to be effective is discount home insurance that rewards customer loyalty. If you remain with an insurance carrier from 3-5 years you will receive an additional 5% off your premium: this discount jumps to 10% if you remain their customer for more than 6 years. In addition, several companies provide a 20% discount home insurance policy for their customers who are over the age of 50.