What discounts are available?
Home insurance companies need to get and keep as many customers as possible. They need the premium income coming in but there are only a finite number of customers. So all companies have to offer discounts as incentives. That means they reward you if you keep the risk of a big claim down. Take two common risks:
(a) Fire damage
If you have smoke detectors and your own fire extinguisher, you can call for help earlier and put out small fires quickly. Now look at how the house is built. The greater the percentage using bricks, concrete, etc. that will not burn, the better the discount.
(b) Burglary
If you have deadbolts on the doors and locks on the windows, your premiums are already falling. Add in a central burglar alarm, motion sensors and CCTV cameras, and more discounts are available. If this is your own home and not a weekend cottage, further benefits are available because routine occupation reduces the risk of burglary.You will often find new homes cheaper to insure than old. The reason is that there is a smaller risk of electrical problems causing a fire or plumbing causing a flood. Renovate your home’s heating, plumbing and electrical systems and you get the same discounts.
Some companies offer discounts for older occupants with no children — less accidental damage. Finally, you will usually get loyalty discounts if you renew with the same company for three or more years.