Getting a claims-free discount with homeowners insurance is an effective way to save money on your premiums. Most insurance companies offer discounts after you have been claims-free for either three or five years, though the amount of the discount may vary by insurer.
The best way to qualify for a claims-free discount is to go without filing a claim for the required period of time. However, there are other steps you can take to maximize the discount. For instance, some insurers may offer additional savings if you purchase both your home and auto policies from the same company. Additionally, you may be eligible for a discount if you’ve installed security systems in your home or taken other measures to reduce risk.
It’s also important to understand how discounts are capped. Though discounts can add up to provide substantial savings, most companies limit the total amount you can save on a policy. The cap is usually around 40%, depending on the insurer.
Finally, remember to ask about loyalty discounts. If you remain a customer of the same company for multiple years, they may reward you with a discounted rate. State Farm, for example, offers a discount of up to 24% after nine years of being claim free, provided that the customer was also claim free during the five years prior to becoming a policyholder.
Overall, getting a claims-free discount with homeowners insurance can help you save money on your premiums and ensure that you have adequate coverage should something unexpected happen. Make sure to speak with your insurance agent about which discounts you may qualify for and ask them to review your policy for potential savings.