What Types of Home Insurance Discounts Are Available?
The types of home insurance discounts available vary – from insurer to insurer and even from policyholder to policyholder when purchasing from the same insurer – but they fall into a number of common categories:
- Home insurance discounts arising by virtue of your home’s location: Home insurance is taken to cover the home owner in case of events like fires and burglaries. It follows, then, that a home which is located near a police station or near a fire station is – at least statistically speaking – at a lower risk of being burglarized or being completely destroyed in a fire, than a house located further away from these stations. This, in turn, means that providing home insurance for such a house represents a lower risk to the insurer, and qualifies the home owner for lower premium. Therefore, if you are shopping for home insurance covering thefts and fires and your house happens to be near a police station or fire station, you are advised to bring this up with your insurer, as it could earn you a tidy home insurance discount.
- Home insurance discounts arising by virtue of safety fittings inside your home: if you have fitted your home with gadgets like smoke detectors and security alarms, these might also earn you a home insurance discount. This is especially likely to be the case if the gadgets you have installed come with mechanisms that automatically alert the proper authorities, like where you have security alarms with the capacity to automatically call the police after detecting a break-in. If your home has such gadgets installed, you are well advised to mention them to your insurer, and see what discount you can get out them.
- Home insurance discounts arising from your homeowner profile: These are given by virtue of different factors, like your age, your background and your lifestyle, among other things. For example, if you work from home or are a retired senior citizen who spends most of your time at home – factors which have been observed to significantly reduce the risk of burglary – you might qualify for a considerable home insurance discount.
- Home insurance discounts arising by virtue of staying with the same insurer: Insurers are known to reward loyalty in a bid to keep long time policyholder. So, if you stay with one insurer for long enough, you might qualify for some home insurance discounts - simply by virtue of the number of years you have had them as your insurer.
- Home insurance discounts arising by virtue of other insurance policies held with the same insurer: If you get your home insurance from the same insurer from whom you have purchased auto insurance and life insurance, you might qualify for some (often considerably big) home insurance discounts. Obviously, insurers do this to encourage more business, but it doesn’t really hurt for you to get all your insurance policies from the same insurer, and you stand to gain a lot in terms of discounts.
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