Your Ultimate Guide to Homeowners Insurance Discounts

Posted: March 31st, 2022

As you may have learned during your homebuying process, homeowners insurance is anything but one-size-fits-all. Obtaining homeowners insurance is a crucial part of the buying process since it helps protect you and your new home from a number of different types of catastrophes. Beyond that, though, it’s up to you to determine how much homeowners insurance you need for your property, accounting for factors like additional buildings on the property, flood likelihood, personal liability, and more. 

When you’re determining the best homeowners insurance for your unique needs, it may be tempting to select the least expensive policy to help you save a few dollars each year. However, your Realtor can tell you that this may leave you vulnerable when issues arise. What’s more, most insurance companies offer discounts for meeting certain conditions. Today, we’re breaking down some of the most common homeowners insurance discounts and how to obtain them. 

Discounts Can Help You Secure an Affordable Rate

There are a number of insurance companies you can select from when you’re searching for homeowners insurance. According to Bankrate, some of the top-rated insurance companies in Florida include Travelers, State Farm, Chubb, and Allstate, with other companies offering policies only to specific locations in Florida. Each of these companies offers a host of discounts, often up to a certain cap, to benefit buyers. These discounts often speak to the safety and integrity of the property as well as traits of the buyers and their families. It’s up to you to compare the benefits you’ll get from each company as well as the discounts they offer to get the best value for your insurance policy. Your trusted real estate agent should be able to give you some pointers when you’re shopping. 

Common Homeowners Insurance Discounts

Bundling

One of the most common discounts available to homebuyers becomes available when you bundle your homeowners insurance with your auto insurance policy. Companies like State Farm and Allstate that offer several different types of insurance like it when you purchase a number of their offerings, so they tend to offer discounts for those who “bundle.” Not only is the discount a bonus, but it’s also more convenient to be able to manage all of your policies in one place. 

Security Systems

Equipping your home with security systems like burglar alarms, fire alarms, smoke alarms, and so on means that you’ll be able to respond to emergencies faster than you could without these systems. Whether the purpose of your security system is to deter break-ins or to make sure the fire department is on-call when you need them, protecting your home in these ways can reduce the amount of any potential claims you may need to file.

Home Improvements

This is a big one in Central Florida, especially when your home improvements help secure your home against wind and hurricane damage. There are a number of home improvements you can carry out in your home to help you obtain a discount on your premium, including updated electrical and water heating systems, impact-resistant roofs and windows, and storm shutters. If this is something you have done recently, be sure to contact your insurance agency for a review of your policy.

First-Time Homebuyer and Loyalty

A number of insurance companies reward first-time homebuyers with a discount on their annual premiums. Similarly, some companies give discounts to customers who stay with them year after year. In regards to loyalty discounts, insurance companies often stipulate that the customer must be claims-free over the years to obtain this discount. 

Newly Built Homes

Homes that are 10 years old or less tend to receive better homeowners insurance rates under the assumption that their electrical and plumbing systems are up to current code and that more modern materials and security measures have been used in the construction of the home. People who purchase new-construction homes may be able to find even greater savings on their policies. 

Gated Communities

Gated communities and communities governed by homeowners associations provide a heightened level of security for homeowners and their properties. Many insurance companies reward these increased security measures with policy discounts. 

Occupational or Military Service Discounts

In particular, USAA insurance is available only to military members and their families, but it offers affordable rates to its members. Similarly, a handful of insurance companies offer discounts for teachers and first responders. These types of discounts are fairly rare, so be sure to do your research to find which companies offer them. 

How to Take Advantage of Homeowners Insurance Discounts

Some common discounts, like non-smoker and senior discounts, can be factored in immediately when building your policy as your insurance company won’t need to do much research to verify these factors. On the other hand, discounts that require updates to your home – new roofs, new water heater, new electrical systems, etc. – may be applied to your policy after you’ve already entered your agreement. Your insurance company will want to verify that the work has been done correctly and meets current standards. 

The list of discounts we presented above is not exhaustive, with many companies offering unique sets of discounts for buyers who meet unique criteria. Keep in mind that applying a lot of discounts to your policy doesn’t guarantee you the best rate possible, so it’s still a good idea to compare the final numbers before you select your policy. 

If you’re a first-time homebuyer and these options seem overwhelming, don’t worry! An experienced real estate professional should be able to give you some insight into the best companies and policies for your unique needs. If you’re ready to buy a home in Brevard County, partner up with real estate professionals you can trust for a successful transaction. Call Ellingson Properties at 321-750-7050 to learn more today.