When looking for the ideal condo insurance policy, price is an important factor to consider. You might not realize that there are ways you can get reduced or discounted prices on your policy.
Taking a few simple steps now can end up saving you hundreds of dollars in the long-run, so it pays to shop around and learn about discounts you may qualify for.
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Condo Owners Can Take Precautions to Lower Risks
- In approximately 56% of residential fires in homes with working smoke alarms, the fire can be controlled quickly enough to minimize damages
- When used in conjunction with other safety precautions, burglar alarms can reduce your risk of burglary by 66.2%
- More than 50% of all home burglaries could have been discouraged through the use of a dead-bolt lock
- Implementing the above safety and security measures can result in discounts on your condo insurance
How to Get Condo Insurance Discounts
There are several different ways to get lower rates on your condo insurance premiums. You will typically qualify for certain discounts based on the information you provide when you apply for the policy. It can also be advantageous to work with an agent who can scout for more deals and discounts for you.
Some of the ways to lower your costs and get condo or townhouse insurance discounts include:
- Bundling policies
- Reducing the risk of fire damage
- Reducing the risk of theft
- Remaining claims-free over an extended period of time
- Paying your premium annually, or by electronic funds transfer
Let’s look at each of these savings opportunities in more detail.
The number one way to save money on your insurance policy is to work with one company for several of your insurance needs. Most condo owners also have other insurance needs, such as policies for cars, RVs, or boats.
Home and auto owner may consider an umbrella policy to cover the costs of an unforeseen liability claim or lawsuit. When you let one insurance company handle all your insurance needs, you will typically get multi-policy discounts.
When using one company for all of your insurance coverage, make sure the insurance company you choose is the best one for your needs.
Reducing the Risk of Fire Damage
A fire in your condominium has the potential to destroy all your personal property and cause damage to the units surrounding yours. For this reason, many insurance companies offer significant condo insurance discounts to customers who present a low risk of fire damage.
For example, some insurance companies offer reduced rates to customers who can guarantee they have a non-smoking household.
Likewise, your condo insurance policy will often become more affordable if you have well-maintained fire safety equipment such as smoke alarms, fire-extinguishers or an in-home sprinkler system.
Reducing the Risk of Theft
Many condominium communities and associations provide their residents with high-tech security systems. Some communities may be gated while others require those entering to buzz in or check with a doorman. These added security features often result in lowered insurance rates.
When break-ins occur, the intruders most often enter the residence through a door. Ensuring that all doors to your home have dead-bolt locks can significantly reduce your risk of burglary, and you may get less expensive condo insurance as a result.
Burglar alarm systems effectively deter theft, and installing one of these systems can equate to condo insurance discounts of up to 20 percent.
Some insurance companies offer incentives to their customers such as reduced rates every year as long as they have not filed a claim. This encourages policy holders to use proper safety precautions.
Paying Your Premium Annually or with Electronic Funds Transfer
Paying your premium annually reduces processing fees and overhead for the insurance company, which can result in savings on your premium.
Likewise, if you set up an automatic electronic funds transfer, or EFT, to pay your premiums, you may be entitled to a discount. If you choose EFT payments, your scheduled payment will be deducted directly from your bank account on the due date.
Electing for automatic payments has several advantages. You do not need to worry about accidently sending your payment late and owing late fees, you can keep your money in your own account until the day it is due and you can often receive discounts for making your payments this way.
These discounts generally average about $5 a month, which adds up over time.
Finding the Right Condo Insurance at the Right Price
Because every insurance company is different, you can find a number of different perks, rewards and discounts by shopping around. This is an important process to invest in.
Whether you opt to do this research on your own, or seek an independent agent to do the research for you, getting at least 3 quotes for coverage is a crucial step that all consumers could benefit from.