Want to lower your home insurance premium? There are discounts for taking


As the cost of home insurance continues to rise across the country, especially in disaster-prone areas such as the West Coast and Florida, many luxury home owners are looking for ways to lower their premiums. Although the cost of coverage varies widely depending on many factors, such as the size of a home, its age, and its location, there are discounts and credits that can reduce premiums by up to thousands of dollars per month. year.

According to the Insurance Information Institute, an industry professional group, the average premium for a home insurance policy increased 3.1% in 2018, the latest year for which statistics are available, to reach $ 1,249 . But owners of luxury homes pay a lot more. “High-end homes are more expensive to repair or replace than a standard home,” said Loretta Worters, vice president of the Institute. “The house is generally much larger and may have special decorative moldings, luxury kitchens with imported Italian marble countertops, gold light fixtures, murals all more expensive to replace.”

One of the easiest ways to lower your home insurance premium is to bundle policies by insuring your home, car, or boat with the same company. Manhattan executive producer Lydia Leeds who owns a 3-acre vacation home in northwest Connecticut pays Travelers $ 2,358 to insure the property, valued at nearly $ 1.5 million, but she saves 12% on his premium by insuring his house and his car. with the same company. Ms Leeds also gets 10% credit for having a central station alarm system and 2% credit for installing a water sensor that detects leaks. His rebates total $ 1,600.

Discounts are also available for bundling other types of policies. Chubb, for example, is offering up to 7.5% off, in most states, on bundling home and valuables coverage for jewelry, fine art, wine, or other items. collection, according to Fran O’Brien, division president of Chubb North America Personal Risk Services.


Updating your home not only increases its value, but may also entitle you to a premium discount. By replacing the roof or windows, or upgrading the electrical system, you reduce the risk of loss for an insurance company, which translates into a lower premium.

The same goes for adding hurricane shutters, straps to secure the roof, or a whole house generator in a storm prone area. A wind mitigation inspection can document improvements that would make a home more robust in a storm.

Other discounts are also available. This is when a good insurance agent can be invaluable because they know the intricacies of insurance. Travelers, for example, offers a 5% discount on green homes if an insured’s home is LEED certified. Homeowners without loss for several years may also be entitled to a “no loss” discount. Discounts for living near a fire station or fire hydrant may also be available. Remember that not all discounts are available from all insurance companies.

Another way to lower your home insurance premium is to increase your deductible. For a typical $ 5 million home, increasing its home insurance deductible from $ 10,000 to $ 50,000 reduces the overall premium by 24% per year, on average, said Andrew Hurst, research and data analyst for ValuePenguin, a personal finance website owned by LendingTree.

Tips for lowering your insurance premium

If you are in the home insurance market, here are a few things to keep in mind:

Remember to protect your valuables. A standard home insurance policy may not adequately protect your jewelry, artwork, or wine collection. According to Loretta Worters of the Insurance Information Institute, a standard policy can cover up to $ 2,500 on jewelry, while a policy for wealthy homeowners can include comprehensive coverage of up to $ 150,000 or more, with limits of $ 10,000 per item. . For expensive watches or other valuable parts, endorsements can be added to the policy for additional coverage.


Consult your insurance agent before moving. Luxury homes are often found in areas with low crime rates, but they may face other risks, such as hurricanes, floods, or earthquakes. If you plan to move to more than one location, an insurance agent can provide you with advice on the rates for each location. The age of a home also affects the insurance rate. Even if you are purchasing new construction, call your agent early in the process. During construction, it is easier to install wiring for central burglar and fire alarms, as well as sprinklers and water shutoff valves, which would all qualify you for a discount.


Compare companies and policies. It might seem obvious, but a recent survey in March 2021 by ValuePenguin, the personal finance website, found that 26% of Americans had never compared multiple insurance quotes. It could cost them money, because 80% of those making more than $ 100,000 a year who took the tour saved money by doing so, according to ValuePenguin.

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About Michael Brafford

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