For Some Extra Savings on Your Home Insurance, Check Out These Discounts
December 13, 2017
Your homeowner insurance isn’t really a luxury, it’s a must-have. So like most must-haves in life, we really don’t enjoy paying more than we should to have them. To make sure we’re clear, we’re not saying you should ever consider going without, it’s important to have home insurance and to ensure that you carry adequate coverage by insuring to full value. Also, don’t save money on this purchase by decreasing limits to save a few bucks, that’s a huge mistake. But why pay more than you have to when there are various discounts available that can be applied to your homeowner insurance policy and bring that annual premium down to a more feasible level, right?
Some discount eligibility will depend on how long you’ve been with your insurer, others not so much. It’s always a good idea to inquire about the discounts offered to make sure you’re not missing a deduction that’s been an oversight, you may also come to realize that you qualify for a lower premium once you’ve proven your loyalty to the company.
Although not really a true discount, you may also want to give some thought to a higher deductible on your policy. The more risk that you assume (the deductible), the lower your premium. Here are some discounts that are fairly common in the world of insurance, they’re normally shown on your insurance declaration page if they’ve been applied to your policy:
New Home Discount
This can vary by company and may have a decreasing factor applied as your home gets older of the qualifying term. In most cases, your house needs to have been built new in the past ten years.
Monitored Alarm Discount
We appreciate that you’re taking extra measures to protect against theft and have an emergency contact installed in case of fire. Most companies will require a copy of the monitoring agreement for their files to ensure this discount is only applied for the term of the agreement.
Everyone enjoys a senior’s discount on their everyday purchases, but we offer this discount because you’re wiser and most likely give greater thought to protecting what you own, there’s a pride factor.
Mortgage Free Discount
The bank no longer owns your home, and you are less in debt making your home a bit safer risk for the insurer.
Claims Free Discount
Both new and existing business should be rewarded for their safe practice of loss prevention over the years.
Our way of saying “Thanks, your continued business over the years is greatly appreciated”. This discount may increase the longer you remain loyal to your insurer.
We believe “Bundling is Better”, every insurer would appreciate being able to service all of your insurance needs and encourage you to enjoy the convenience of only having one insurer to deal with
Although not offered by Erie Mutual Insurance at this time, there are a few companies that wish to acknowledge the decreased risk of not having anyone smoking in the household.
We encourage you to discuss all available discounts with your insurer, we believe it’s an important element of reviewing your insurance policies annually. Any combination of the above discounts will substantially decrease your overall premium, but don’t be fooled by companies that list a ton of discounts along with the corresponding percentage savings for each on your policy – there is typically a cap on the maximum percentage allowed for all policies. After all, your insurer can’t possibly offer you savings of 60-75% off the base rate, they’d never survive financially to pay any claims. If you see this on your policy, ask your insurance agent or broker what amount you’re really saving!
Savings on price is always appreciated, by any buyer in any market. But that should never be the only thing that motivates us. The true value of your home insurance includes the communication, service and informative education you receive while building a relationship with an insurance company that truly knows its members.
Article Written by Darcy Johnson
Erie Mutual Insurance Manager – Sales, Marketing & Business Development
Join our Mailing List
Stay updated on industry or company changes that may affect your insurance coverage or buying decisions.
This is the perfect time to plan and begin projects around your home for the changing season and weather, especially outdoors. We are often reminded by insurance claims that better preparation and less procrastination may have saved both money and headaches for many homeowners.
If you have ever built or had a contractor build, your own house then it should not surprise you that the final cost is never what you thought it was going to be at the start of the project. Why is that?