As I’ve mentioned before, it’s hard to watch any sort of television program without seeing an insurance advertisement at some point. I also have already expressed my views on the commercials that attempt to be cute, so we won’t go there.
However, while some of the commercials bring up legitimate points regarding discounts that are available, I’ve yet to see one that really explores the breadth of available discounts that are available on homeowner insurance policies. So, let’s go there instead.
For starters, every insurance company offers a package discount. This means you will receive a certain percentage off of your home and/or auto policies by having the same insurance company write the coverage.
Next, there are discounts that are available for various protective devices. This includes discounts for centrally-monitored burglar and/or fire alarms, automatic water shut-off systems, water leakage detection systems, gas leakage protection systems, lightning protection systems, whole house permanent backup generators and more. In short, if you have any type of system in place to prevent a small issue from becoming a large one, check with your independent insurance agent to see if it is eligible for a discount!
Finally, there are discounts that accumulate over time. These include claims-free discounts along with loyalty discounts (insert vinyl record screeching to a stop sound). Yes, that’s right – loyalty discounts! Despite what some insurance companies make you want to believe, changing insurance companies from year to year isn’t always the best way to save premium. Many insurance companies reward their policyholders by giving them loyalty discounts, or in some cases, diminishing deductibles. Therefore, it can certainly pay to remain with the same insurance company for an extended period of time!
While saving money is always a good thing – and I encourage you to explore all of the discounts for which you are eligible – keep in mind that insurance is there for a reason: protection against loss. The cheapest policy isn’t necessarily going to do what you would like it to do when the unthinkable happens and you face financial disaster. As we recently saw with the tornadoes that devastated the greater Dayton area, those who were affected wanted their insurance policies to respond, as cute commercials and cut-rate policies weren’t going to replace everything that was lost.
Take the time to not only review your available discounts with your trusted insurance agent, but review your available coverage options with him or her as well!