When you buy a house, your lender may require that you show proof that you purchased homeowners insurance before your loan is approved. Your premium is based on a number of factors such as the type of home you own, where it is located, and even your credit history. Here are some things you can do that may qualify you for a discount on your homeowners insurance premiums:
Multi-Line Discount
One of the easiest ways to qualify for a discount on your premiums is by having all your insurance needs serviced by the same insurance company. For example, if you bundle your auto, life, and health insurance together with your homeowners insurance, you will probably qualify for a substantial rate reduction.
If you get your health insurance through your employer, you can eliminate it from the bundle. However, it may make financial sense to cancel your employer's health insurance and then get it from the carrier who provides your homeowners insurance because it may be cheaper.
Renovate Your Home
If you have an older home, your plumbing, electrical, and heating systems may be faulty or outdated. Insurance companies often give policy holders a discount on their homeowners insurance if their homes are renovated or updated. When your utility services are updated, your home is less likely to flood because of broken pipes, and because your electrical and heating wiring will be new, your risk for electrical fires, gas leaks, and gas explosions will be reduced.
After the renovations, the insurance company will see your home as a lower risk, and therefore, give you a break on your premiums. Be sure to provide your insurance provider with documentation pertaining to your renovations so that relevant rate reductions can be applied to your premium statement.
Alarm Systems
Your insurance company will give you a rate reduction if you have alarm systems in your home such as a fire alarm. burglar alarm, or security system. When you have a fire alarm in your home, the response time from the fire department may be faster, which may result in less damage to your home. When fire damage is reduced because of a quicker response time by the fire department, the claim that you submit to your insurance carrier will also be lower.
To learn more about multi-line discounts, home renovations, alarm systems, and other factors that may qualify you for a discount on your premiums, contact companies like Atlantis Insurance.
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