Home insurance credits homeowners may not know about

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Home insurance credits homeowners may not know about

 
July 25, 2011
 
 
According to Bankrate, some homeowners think there are only a few things they can do to lower their home insurance rates, such as installing a smoke alarm or adding a security system. However, there are several other ways they can reduce their premiums. Bankrate reports property and casualty insurers offer a number of credits available for homeowners to lessen their monthly payments.
 
Gated community
 
Living in a gated community is a big plus in the eyes of home insurers, according to Bankrate. Many home insurance companies like to know there is an extra layer of protection for their policyholders. Home buyers who want to shave a few dollars off their premiums with their home insurer may want to check out open houses in enclosed neighborhoods.
 
New wiring
 
Homeowners who live in older properties may have electrical wiring that is outdated and in need of replacement. Old wires can be a dangerous hazard to a home, according to Bankrate, which is why many home insurers charge high rates for properties with aging wiring.
 
According to the U.S. Fire Administration, nearly 70,000 homes burn down each year due to electrical problems. Those who reside in homes with decades-old wiring should see if it needs to be replaced, and homebuyers on the search for a house may want to ensure any home they look at has sufficient wiring.
 
Impact-resistant roofing
 
Bankrate reports a home's roof is a major consideration for home insurance companies when they determine how much they will charge for a policy - particularly for homes in areas where extreme weather can affect a property. Heavy rains, wind and hail can substantially damage a home's roof. The high risk of this damage occurring may lead to a greater premium.
 
However, according to Bankrate, homeowners who install impact-resistant roofing might be able to secure credits toward their policy. By adding high-grade roofing to one's home - oftentimes roofing approved by a testing laboratory - Bankrate reports homeowners might be able to reduce their insurance costs.
 
Claims-free credit
 
Just like the "good driver" discount many auto insurance companies offer, Bankrate reports numerous home insurance companies offer similar savings for homeowners who don't file claims.
 
By not filing a claim, a homeowner is saving their home insurance company money and proving they aren't a major liability. This could lead to credits toward their policy in many cases, according to Bankrate.