GoBanking Logo
GoBanking Logo

Top 31 Home Insurance Discounts That Save the Most

Feverpitched / Getty Images/iStockphoto

Home insurance companies offer numerous discounts to policyholders that can shave significant costs from current rates — but it’s up to the homeowners themselves to determine which discounts they qualify for to ensure getting them. The biggest discounts are related to a home’s age, building materials, roof condition and security system, as well as the homeowner’s method and record of payment, according to an Insurance.com analysis of insurance rates for six major insurers.

If you want to lower your own rate, make sure you’re aware of all the available discounts. Keep reading to learn which insurance coverage discounts will save you the most based on Insurance.com’s analysis.

photovs / Getty Images/iStockphoto

Deadbolt

  • Average rate: $1,482
  • Average rate after home insurance discount: $1,480

Home upgrades and features that improve the security of your home can lead to home insurance discounts. These can be as major as a full-blown home security system or as minor as a deadbolt lock for your doors. The home insurance discount you’ll get by having a deadbolt is minimal — about 0.13%, which amounts to $2 off the average insurance rate — but it’s still worth claiming if you have one.

FotoDuets / Shutterstock.com

Water Leak Detection (Alarm)

  • Average rate: $1,482
  • Average rate after home insurance discount: $1,478

Having a water safety system in place to prevent damaging leaks can qualify you for a home insurance discount, but the amount of the discount will depend on how advanced the system is. On the lower end, having a water leak detection alarm will save you an average of 0.27%, or $4 off the average home insurance rate.

DANAI KHAMPIRANON / Shutterstock.com

Water Leak Detection (Shut Off)

  • Average rate: $1,482
  • Average rate after home insurance discount: $1,478

From a discount perspective, a water safety system that will automatically shut off the water supply when a leak is detected is considered equivalent to a water leak alarm. Having this system in place will get you a 0.27% discount on average, which would amount to $4 off the typical rate.

Suzanne Tucker / Shutterstock.com

Hail Resistant Roof

  • Average rate: $1,482
  • Average rate after home insurance discount: $1,477

A roof that’s built to be resistant to hail damage will save you an average of 0.34% on your home insurance policy, or $5 off the average rate. If you install a new hail resistant roof, provide documentation to your home insurance company to get the discount.

kate_sept2004 / Getty Images

10-Plus Years Claims Free

  • Average rate: $1,482
  • Average rate after home insurance discount: $1,477

If you haven’t made any insurance claims for 10 or more years, you might qualify for a discount. Check with your insurance company when you renew your policy to see if you can get this claims-free discount, which averages 0.34%, or $5 off the average rate.

Jacob Lund / Shutterstock.com

5 Years Claims Free

  • Average rate: $1,482
  • Average rate after home insurance discount: $1,477

Even if you haven’t made it to the 10-year mark of being claims free, your insurance company still might give you the same discount after just five years of not making any insurance claims.

cmannphoto / Getty Images/iStockphoto

Water Leak Detection (Shut Off and Alarm)

  • Average rate: $1,482
  • Average rate after home insurance discount: $1,476

A water leak detection system that has both an alarm and the ability to shut off a water source automatically is worth more than a system that only has one of the features. This water safety system could get you a 0.4% discount off your insurance policy, or $6 off the average rate.

Evgen_Prozhyrko / Getty Images/iStockphoto

Heating Upgrade

  • Average rate: $1,482
  • Average rate after home insurance discount: $1,475

Upgrading your heating system can help prevent fire damage, which is why it could score you a discount. Expect to save 0.47%, or $7 off the average home insurance rate when you notify your insurer that you made this upgrade.

KKris / Shutterstock.com

Smoke Detector

  • Average rate: $1,482
  • Average rate after home insurance discount: $1,474

Homeowners get rewarded for installing fire detection and prevention tools, including smoke detectors. Having smoke detectors in your home can save you an average of 0.54% on your insurance costs, which translates to $7 off the average rate.

lovro77 / iStock.com

Plumbing Upgrade

  • Average rate: $1,482
  • Average rate after home insurance discount: $1,473

Upgrading your plumbing can help prevent costly water damage. Making this home improvement can save you 0.61% on your home insurance, which is $9 off the average rate.

Geber86 / iStock.com

Electronic Fund Transfer

  • Average rate: $1,482
  • Average rate after home insurance discount: $1,473

Setting up automatic payments is an easy way to save on home insurance. Not only will you get a discount of 0.61% on average — or $9 off the typical rate — but you’ll also avoid late fees.

mhong84 / Getty Images/iStockphoto

Fire Alarm (Local)

  • Average rate: $1,482
  • Average rate after home insurance discount: $1,470

A local fire alarm is defined as one that alerts only the homeowner. It’s not tied to the fire department, so the homeowner would have to hear the alarm and contact the fire department for it to be effective. Having this type of fire alarm saves $12 off the average home insurance rate, or 0.81%.

A stockphoto / Getty Images/iStockphoto

Electrical Upgrade

  • Average rate: $1,482
  • Average rate after home insurance discount: $1,468

As with a heating upgrade, upgrading a home’s electrical system can help prevent fires and fire damage. An electrical upgrade will qualify homeowners for an average discount of 0.94% on their home insurance, which is equivalent to $14 off the average rate.

shapecharge / Getty Images

Paid in Full

  • Average rate: $1,482
  • Average rate after home insurance discount: $1,464

When ranking insurance savings by discount category, “paid in full” discounts rank in the top 10. As the name suggests, this means paying your entire policy in full rather than in installments. It saves policyholders an average of 1.21%, which translates to $18 off the typical home insurance rate.

 

Yuri_Arcurs / Getty Images

7 Days Advance Purchase

  • Average rate: $1,482
  • Average rate after home insurance discount: $1,463

Purchasing your home insurance policy a select number of days before the policy’s effective date might entitle you to a discount. The average savings for a policy that’s purchased seven days in advance of the date it begins is 1.28%, or $19 off the average rate.

D-Keine / Getty Images

Burglar Alarm (Local)

  • Average rate: $1,482
  • Average rate after home insurance discount: $1,462

Just like with a local fire alarm, a local burglar alarm only alerts the homeowner — not authorities. The homeowner would be responsible for calling the police themselves with this type of alarm system. Having a local burglar alarm is worth an average discount of 1.35%, or $20 off the average rate.

gradyreese / Getty Images

10-Plus Days Advance Purchase

  • Average rate: $1,482
  • Average rate after home insurance discount: $1,458

Purchasing a home insurance policy 10 days or more before its effective date can save policyholders an average of 1.62%. Someone who pays the average rate would save $24 with this discount.

 

ftwitty / Getty Images

Burglar Alarm (Police Department)

  • Average rate: $1,482
  • Average rate after home insurance discount: $1,440

A burglar alarm that directly alerts the police department is worth a 2.83% discount on average. That translates to a $42 savings off the typical home insurance rate.

Rawpixel / Getty Images/iStockphoto

3 Years Renewal

  • Average rate: $1,482
  • Average rate after home insurance discount: $1,438

Policyholders who keep their same insurance company for three years might qualify for a loyalty discount. It’s important to note, however, that insurers typically only give this to customers who are in good standing, and many insurers only offer it to customers who’ve been claims-free for a certain period of time.

The three-year renewal discount is usually 2.97%, or $44 off the average rate.

slobo / Getty Images

Fire Alarm (Fire Department)

  • Average rate: $1,482
  • Average rate after home insurance discount: $1,435

This type of fire alarm directly alerts the fire department when there are signs of a home fire. Having this type of alarm system gets the average policyholder a 3.17% discount, which would be $47 off the average rate.

kali9 / Getty Images

Burglar Alarm (Central Station)

  • Average rate: $1,482
  • Average rate after home insurance discount: $1,431

This type of burglar alarm notifies a central monitoring staff at the signs of a break-in. The monitoring staff will alert the police department and also verify the incident with the homeowner. A central station unit is considered the highest level of burglar alarm system, so it will score you a higher discount than a local or police department system — 3.44% on average, or $51 off the typical rate.

GNK82 / Getty Images

Fire Alarm (Central Station)

  • Average rate: $1,482
  • Average rate after home insurance discount: $1,425

This system works in the same way as a central station burglar alarm. A central monitoring staff will alert the fire department at signs of a fire and verify the incident with the homeowner. Because fire damage can be so costly to repair, having this system in place can be worth a significant discount of 3.85% on average. That amounts to $57 off the typical home insurance rate.

Pekic / Getty Images

5 Years Renewal

  • Average rate: $1,482
  • Average rate after home insurance discount: $1,414

The longer you stay with your insurer, the higher your loyalty discount. A renewal for five years typically gives you a 4.59% discount, or $68 off the average rate.

antpkr / Shutterstock.com

Sprinklers

  • Average rate: $1,482
  • Average rate after home insurance discount: $1,404

Of all the fire prevention and detection systems you can install, sprinklers earn the biggest discount at 5.26%, or $78 off the average rate.

SLRadcliffe / Getty Images/iStockphoto

Roof Upgrade

  • Average rate: $1,482
  • Average rate after home insurance discount: $1,401

Roof upgrade discounts are among the top 10 types of home insurance discounts you can get in terms of savings. Be sure to notify your insurance company if you upgrade your roof as this can score you an average of 5.47% off your rate. On the typical policy, that adds up to $81 in savings.

Cecilie_Arcurs / Getty Images

10-Plus Years Renewal

  • Average rate: $1,482
  • Average rate after home insurance discount: $1,388

Sticking with your home insurer for a decade or more can save you $94 off the average rate — a discount of 6.34%. Even so, it’s still a good idea to shop around for insurance every few years. You might get a new customer discount and other perks that outweigh any loyalty discounts.

Steve Debenport / Getty Images/iStockphoto

Masonry Construction Type

  • Average rate: $1,482
  • Average rate after home insurance discount: $1,372

Insurers classify home construction types as “frame,” “masonry” or “superior.”  A masonry construction type can qualify you for an average discount of 7.42%, which would be $110 off the typical rate.

Halfpoint / Getty Images/iStockphoto

Superior Construction Type

  • Average rate: $1,482
  • Average rate after home insurance discount: $1,294

“Superior” construction is worth a bigger discount than a frame or masonry construction type. A home with a superior classification features floors, a roof and exterior walls that are made of metal, concrete or other noncombustible materials. The typical discount for this construction type is 12.69%, or $188 off the average rate.

Fire Resistive Construction Type

  • Average rate: $1,482
  • Average rate after home insurance discount: $1,293

When it comes to construction type, home insurers favor fire resistive above all else. Fire resistive materials don’t allow electrical currents to pass through, which makes them very effective for fire prevention. Homeowners can claim a 12.75% discount for this type of construction, which would amount to a $189 discount off the average insurance rate.

filadendron / Getty Images

Home and Auto Bundle

  • Average rate: $1,482
  • Average rate after home insurance discount: $1,198

When you get more than one type of insurance from a single insurance company, that company will typically thank you by offering a discount off your home policy. These bundling discounts take effect when you start your multiple policies, or when you add a new policy to an existing one. The average bundling discount is 19.16%, or $284 off the average rate. But some companies offer greater home and auto bundle discounts than others. According to Insurance.com’s rate analysis, Allstate, Erie and State Farm offer the highest bundle discount, with each providing a 24% discount for costumers who take out both home and auto policies.

 

New Home Construction

  • Average rate: $1,482
  • Average rate after home insurance discount: $934

Insuring a new home will qualify you for the highest discount — an average of 36.98% off the typical rate. That translates to a hefty $548 off the average home insurance rate.

More on Money