10 Proven Ways to Slash Your Home Insurance Costs After Moving
Moving into a new home is an exciting time, but it can also bring a wave of expenses. Thankfully, one area where you can potentially save big is your homeowner's insurance. If you've recently moved, you're in a prime position to take advantage of several discounts and strategies that can significantly reduce your premiums. In fact, a recent study by the Insurance Information Institute (III) found that 42% of new homeowners successfully negotiate a lower rate on their home insurance by inquiring about available discounts.Here are ten proven ways to cut your insurance costs:
Shop Around and Compare Quotes: Don't settle for the first insurance quote you receive. Get quotes from multiple companies to compare coverage options and rates. Use online comparison tools or work with an independent agent to simplify the process.
Bundle Home and Auto Insurance: Many insurers offer substantial discounts when you combine your home and auto insurance policies. This can be one of the easiest ways to save on both premiums.
New Homeowner Discount: As a new homeowner, you may be eligible for a discount simply because you're less likely to file claims. Inquire about this discount when getting quotes.
New/Updated Home Discount: If your new home is newly built or recently renovated, it may be eligible for a discount due to its modern construction and safety features.
Claims-Free Discount: If you have a clean claims history on previous insurance policies, you're often rewarded with lower premiums. Provide proof of your claims-free record to your insurer.
Security System Discount: Installing a home security system like Kangaroo can significantly reduce your risk profile and qualify you for a substantial discount. The Kangaroo system is particularly appealing for recent movers due to its easy installation and portability.
Higher Deductible: Opting for a higher deductible – the amount you pay out of pocket before insurance kicks in – can lower your monthly premium. However, make sure you can comfortably afford the higher deductible in case of a claim.
Home Improvements: Have you made any upgrades to your home, such as installing a new roof or impact-resistant windows? These improvements can lower your risk and potentially earn you discounts.
Group Discounts: Check if you're eligible for discounts through your employer, professional organization, or alumni association.
10. Kangaroo Dory:
Kangaroo Dory simplifies the process of finding and applying for home insurance discounts. Here's how it works:
Answer a Few Questions: Start by providing some basic information about your home and insurance policy.
Dory Does the Digging: Dory's proprietary algorithm sifts through hundreds of potential discounts, analyzing your information to identify those you might be missing.
We Work with Your Insurer: Once Dory finds applicable discounts, we work directly with your insurance company to apply them on your behalf. No hassle, no paperwork for you!
Why New Homeowners Often Get Discounts:
Lower Risk Profile: Insurance companies recognize that new homeowners tend to be more proactive about maintenance and safety, making them a lower risk for claims compared to those in older homes. This can translate to lower home insurance rates.
Modern Homes: Newer homes often have updated features like electrical systems, plumbing, and roofs, reducing the risk of damage and potentially lowering insurance premiums.
Factors That Affect Home Insurance Costs:
It's important to understand the factors that influence your home insurance premium:
Location: Homes in areas prone to natural disasters or high crime rates may have higher premiums.
Home Value and Square Footage: The size and value of your home directly impact the cost to rebuild or replace it, influencing your dwelling coverage and overall premium.
Construction Materials: The type of materials used to build your home (e.g., wood, brick, concrete) can affect its vulnerability to damage and thus your insurance rate.
Age and Condition of the Home: Older homes may require more maintenance and repairs, leading to higher premiums.
Roof: The age and condition of your roof are significant factors, as a well-maintained roof can withstand harsh weather better.
Security Features: Homes with security systems, smoke detectors, and fire extinguishers often qualify for discounts.
Claims History: If you have a history of filing claims, your premiums may be higher.
Credit Score: In many states, your credit history can influence your insurance rates.
Types of Discounts Available:
New Homeowner Discount: Many insurers offer a specific discount just for being a new homeowner.
Claims-Free Discount: If you have a clean claims history, you could receive a significant discount on your premium.
Home Safety Discounts: Installing burglar alarms, smoke detectors, and even a Kangaroo home security system can qualify you for savings.
Bundling Discounts: Combining your home and auto insurance with the same company can often lead to a lower overall premium.
Welcome Discounts: Some insurers offer special introductory rates for new customers.
Maximizing Your Savings:
Compare Home Insurance Quotes: Don't just settle for the first quote you get. Use online comparison tools or contact multiple insurance agents to compare rates and coverage options.
Review Your Coverage: Make sure you have adequate dwelling coverage to rebuild your home at replacement cost value (RCV) and sufficient personal property coverage for your belongings. Consider adding extra coverage for high-value items or specific risks, such as flood or earthquake damage, if you live in an area prone to these disasters.
Adjust Your Deductible: Increasing your deductible (the amount you pay out of pocket before your insurance kicks in) can lower your premium. However, ensure you can afford the deductible in case of a claim.
Understanding Your Policy:
Liability Coverage:This protects you financially if someone is injured on your property or you're held responsible for damage to their property. Consider the liability limit that best suits your needs.
Medical Payments Coverage: This covers medical expenses for someone injured on your property, regardless of fault.
Additional Living Expenses (ALE): This coverage helps pay for living expenses if your home becomes uninhabitable due to a covered event.
Key Considerations:
Insurance Score: Your credit-based insurance score can impact your premium. Maintaining a good credit score can help you get the best rates.
Discounts: Ask your insurance agent about all available discounts, including those for new homeowners, safety features, claims-free history, and bundling.
Additional Resources:
Insurance Information Institute (III): The III provides valuable information on various types of insurance, including homeowner's insurance.
Your State Insurance Department: This department can provide information about local regulations and consumer protection resources.
Don't miss out on potential savings as a new homeowner. Take the time to shop around, compare quotes, and understand your coverage options. By being proactive, you can secure the best possible protection for your new home at an affordable price.
Read More:
How to Get an Insurance Discount for Your Security System
How to Choose the Best Homeowners Insurance Company
What Does Homeowners Insurance Cover for You
Q&A: Home Insurance Discounts for Recent Movers
Your Path to Savings
Q: I just moved into a new home. Are there any special discounts I can get on my homeowner's insurance?
A: Absolutely! Many home insurance companies offer discounts specifically for new homeowners. These discounts are often based on the assumption that new homeowners are more likely to maintain their homes well and take precautions to prevent damage, making them lower risk for insurers.
Q: What types of discounts are available for new homeowners?
A: You might qualify for several discounts on your homeowners insurance policy, including:
New Homeowner Discount: A percentage off your premium simply for being a new homeowner.
New/Updated Home Discount: If your new home is newly built or has recent renovations, you might get a discount for its modern features and updated safety standards.
Claims-Free Discount: If you have a clean claims history on previous insurance policies, you could be rewarded with a lower premium.
Bundling Discount: Combining your home and auto insurance with the same company often results in significant savings.
Welcome Discount: Some insurers offer special introductory discounts for new customers.
Q: How do I find out which discounts I'm eligible for?
A: The best way to find out about available discounts is to:
Ask your insurance agent or company directly: They can tell you about specific discounts and eligibility requirements.
Use online tools: Many insurance companies have online quote tools that allow you to see potential discounts based on your information.
Consider using a discount engine tool: Kangaroo Dory is a free service that analyzes your existing policy to identify missed discounts you might qualify for.
Q: Can I get a discount for installing a home security system?
A: Yes, many insurance companies offer discounts for installing security systems like Kangaroo. These systems can deter burglaries and reduce the risk of property damage, making your home less risky to insure.
Q: How much can I save with home insurance discounts?
A: The amount you can save varies depending on the specific discounts you qualify for and your insurer. However, it's not uncommon for new homeowners to save hundreds of dollars annually through various discounts.
Q: What other factors can affect my homeowner insurance premium?
A: Beyond discounts, your premium is also influenced by:
Location: Homes in areas prone to natural disasters or high crime rates may have higher premiums.
Dwelling Coverage: The amount of coverage you choose to protect your home's structure.
Personal Property Coverage: The amount of coverage for your belongings inside the home.
Deductible: The amount you pay out of pocket before your insurance kicks in. A higher deductible usually means a lower premium.
Credit Score: Your credit history can affect your insurance rates in some states.
Q: Should I get flood insurance?
A: Flood insurance is not usually included in standard homeowner's policies. If you live in a flood-prone area, consider purchasing flood insurance through the National Flood Insurance Program (NFIP) or a private insurer.
Q: What does homeowner's insurance typically cover?
A: A standard homeowner's insurance policy includes:
Dwelling Coverage: Protects the structure of your home (walls, roof, etc.).
Personal Property Coverage: Covers your belongings (furniture, appliances, clothing).
Liability Coverage: Protects you if someone is injured on your property.
Medical Payments Coverage: Covers medical expenses for injuries on your property.
Additional Living Expenses (ALE): Covers temporary living costs if your home is uninhabitable.
