Types of Discounts

(Because it never hurts to ask — but not asking could cost you a lot of money)

Christine Lacagnina Written by Christine Lacagnina
Christine Lacagnina
Written by Christine Lacagnina

Christine Lacagnina has written thousands of insurance-based articles for TrustedChoice.com by authoring consumable, understandable content.

paul martin Reviewed by Paul Martin
paul martin
Reviewed by Paul Martin

Paul Martin is the Director of Education and Development for Myron Steves, one of the largest, most respected insurance wholesalers in the southern U.S.

Types of home discounts to ask for

Along with the many other joys of homeownership, you might as well add scoring a sweet discount on your insurance policy to that list. While there’s no way to guarantee that your specific policy will have certain potential discounts available, there are several common discounts in existence that you might be able to take advantage of. An independent insurance agent can help find discounts you qualify for, but here’s a few of the most common to ask for.

Types of Home Insurance Discounts Available

When it comes to home insurance rates and potential discounts, your homeowners insurance company wants to see any measures you’ve taken to reduce major risk factors to your property. This can involve making upgrades to your home’s safety and security features or even something as simple as replacing your roof.

Of course, home updates/upgrades aren’t the only ways to score a discount on your insurance premium. Keep these potential options in mind to ask about when speaking with your independent insurance agent to find out if you can take a chunk out of your premium.

Here are a few of the most common home insurance discounts on the market:

  • The new home discount: It may come as a surprise that newer homes are actually cheaper to insure because they come without plumbing or wiring issues found in older homes. As a result, if you purchase a brand new home, you’re likely to qualify for a significant discount on your insurance policy.
  • The companion policy discount: If you purchase your auto insurance through the same provider as you have your home insurance coverage, you’re likely to qualify for another significant discount, on both of your premiums.
  • The burglar alarm discount: Theft is a huge concern for insurance companies. If you install a burglar alarm or any kind of security system on your home, you can greatly reduce your risk of break-ins and theft. As a result, your insurance company will likely consider you qualified for a discount.
  • The gated community discount: This one also relates to the risk of theft. Living in a gated community will obviously reduce that risk, and insurance companies observe that. If you’re fortunate enough to live in a more secure community, you’re more than likely also fortunate enough to qualify for a break on your home insurance premium.
  • The fire extinguisher discount: Insurance companies’ number one concern when it comes to homes is fire damage. Any measures you take to reduce your risk of fire damage are likely to also qualify you for a reduction on your home insurance premium. This includes purchasing a fire extinguisher.
  • The sprinkler discount: Similar to the previous example, only a sprinkler system is a much more effective means of preventing fire damage, and therefore comes with the potential for qualifying you for a much more significant discount.
  • The no-loss history discount: Insurance companies have access to your home’s history of insurance claims. If you purchase a home with no claims history, you might just be eligible to receive a discount on your home insurance premium.
  • The hail-resistant roof discount: This one only applies if you live in an area that’s prone to hailstorms. If you’ve upgraded your roof to hail-resistant shingles, your insurance company is likely to qualify you for a significant discount.
  • The pool discount: This one is very specific. If you live in an area far away from all fire departments and you install a pool in your yard, your insurance company is likely to offer you a discount because the fire company now has a water source to draw from in the event of a fire.
  • The loyalty discount: This one applies if you’ve been with the same insurance company for many years. While it will vary by company, you may be eligible to receive a discount if you stick with the same carrier over time.
  • The non-smoker discount: Considering one of the major causes of house fires is still due to smoking indoors, an insurance company just may offer you a discount on your premium if you won’t be introducing that hazard into your home.

Keep in mind that this is only a list of common home insurance discounts available on the market and is not extensive. These discounts also may not apply to everyone in each situation, and the availability and amount of the discount offered will vary heavily by the insurance company. Your independent insurance agent can provide you with more information.


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Are These Discounts Only Available in Certain Areas?

The availability of certain discounts does depend on the area. Discounts offered in one town/state may be similar to another or may be completely different. So unfortunately, there’s no master list of discounts available everywhere. Really, it depends on what makes sense for the specific area. For example, various weather-related home insurance discounts would apply to Minnesota residents but not to Florida residents since the states’ weather conditions are so different.

Crime rates are another factor that influence discounts available in a certain area. In areas at higher risk for crime, adding security features to your home or moving to a gated neighborhood will have a much more significant impact than if you purchase a home in an area that’s already determined to be fairly safe and low on crime. However, purchasing a home in a safer area is likely to help you more with your premium in the first place.

How Much Will These Discounts Save Me on My Premium?

It’s hard, or even virtually impossible, to offer exact dollar amounts for these discounts without knowing which specific insurance company and policy is in question. For starters, not every insurance company offers the exact same discounts or the exact same discount amounts on their premiums. It’s all highly subjective to your unique situation, but working with an independent insurance agent can seriously increase your chances of finding the best discounts.

That being said, for the more significant discounts such as the new home discount, the companion policy discount, the sprinkler system discount, and the hail-resistant roof discount, you’re likely to see a break of 10% to 15% or possibly even more on your premium. Certain discounts are less significant, such as the gated community discount or burglar alarm discount, and you might only knock 2% to 5% off your premium. Still, every bit helps. So ask away.

Benefits of an Independent Insurance Agent

Independent insurance agents have access to multiple insurance companies, ultimately finding you the best coverage, accessibility, and competitive pricing while working for you. Find an independent insurance agent in your community here.

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