Homeowners Insurance Discount
homeowners insurance discount
Just bought new Homeowners Ins. policy & an initial discount was removed!?
I just switched both my old home & auto policies to metlife (from Amica & GEICO), due to substantial rate savings. My quote & initial paperwork for the new home owners policy provided for a “superior home discount” of 10%. After my first year premium was paid in full, I received a notice from the insurance company that the discount was removed, with no explanation, with a bill for the remaining amount due. How can they retroactively increase my premium like this? Obviously, I will call tomorrow, but I am irrate, since I just went through all of this trouble to switch, in reliance on the rate being lower due to the discounts !
Just to clarify: my policy has not renewed. I just paid for my first year upfront, and immediately they send me paperwork saying, “discount removed, additional xxx owed.”
Quotes are not binding from any company and with any type of insurance, and are contingent upon underwriting. Usually they are given in good faith dependent upon the information known at that time.
Who told you that you qualified for the discount? If you do not qualify for any discount it can and will be removed retroactively to the time of policy inception or the time you no longer qualify, not the time that underwriting found out you did not qualify. If the agent told you that you qualified SOMETIMES the agent can argue his case with the underwriter and get it reinstated. If you do actually qualify for the discount, or if the agent can get it back, it will be reinstated and you won’t owe anything more.
If you did this all on-line without using an agent you were acting as your own agent and therefore you are probably stuck with the new rate.
Handling Home Insurance Claims
How to Find Homeowner’s Insurance Discounts
There is no way around needing Homeowners insurance if you are about to embark on the journey of purchasing a home. Depending on the size of the home, Homeowners insurance can cost as little as $400 a year to as much as $2000 a year, if not more in some parts of the country. The amount of Homeowners insurance you receive will also be determined by the value of the interior property, including the upkeep of remodeling on the home, as well as whether your policy will include valuable electronics and jewelry.
Once you have determined what type of policy you would like to implement, you can begin discussing yearly and monthly costs with insurance agents. One thing to keep in mind while you are searching for Homeowners insurance is that the rates won’t vary that much between each company, but there are small ways to save a few dollars to a few hundred dollars, simply by finding some Homeowners insurance discounts that are available.
One of the easiest ways to receive a discount on Homeowners insurance is to install a home security system, and not the type that barks and growls. Many insurance companies are actually paired up with security companies like ADT or Brink’s and will give you a discount for using that insurance company and that security company as well.
Even if you get Homeowners insurance and decide to go back later and install a security system, don’t forget to go back and call your Homeowners insurance company once the system is installed so that you can receive a discount on your insurance. Further discounts may be given for motion sensors or even for video surveillance cameras installed on the home.
Another great way to receive a small discount on your Homeowners insurance is through fire and carbon monoxide detectors and fire resistant doors, brick and even walls. Remember that not all companies will offer the same discount for fire resistance and fire protection, so it is best to do research on how much of a discount can be received before diving in to remodeling the entire house for fire resistance.
Keeping up with newer appliances is another excellent way to help receive a Homeowners insurance discount. Older appliances are more likely to develop bad electrical connections, which can make the home susceptible to fire.
The first place to begin updating appliances is in the kitchen because kitchens are on the top of the list for places where fires begin. Many other insurance companies will offer a discount for new plumbing and electrical systems, or simply for a home that is less than ten years old altogether.
While some homeowners aren’t willing to consider a higher insurance deductible, or the price they will pay before the insurance will begin paying for loss or damages, asking for price quotes with higher deductibles is an excellent way to receive a discount on your insurance.
Most Homeowners insurance companies start out with a minimum deductible of $250 to $500 dollars, but try raising the deductible by $250 and see how much this will save you a year. Often times, this can make a difference of nearly $100-$150 a year on the total insurance bill.
Remember, though, that if you choose this route, you may end up paying more than that $150 savings a year if something happens to your home and you have to pay the higher deductible. Simply weight the negatives and positives and decide if a higher deductible is right for you.
The final sure fire way to receive a Homeowners insurance benefit is to belong to a club or certain group. This could simply mean being in the “65 and older” club and receiving a senior citizens discount, or it could also mean already being a member of the bank where you are looking to purchase Homeowners insurance. Some insurance companies also give a discount if you plan on having both your car insurance and Homeowners insurance with that company.
Before settling for the first set of numbers thrown at you by the insurance company, be sure to ask about these discounts and make your assets work for you when shopping for Homeowners insurance.