How to get Insurance Discounts in Chicago
Types of discounts
There is no doubt that home insurance Chicago Illinois can be quite expensive for most of you. However, that shouldn’t affect your decision of buying this incredible necessity.
Lucky for you, there are many ways to gain discounts on your home insurance. From installing safety alarms to increasing your fire safety, in this page we will discuss different ways to benefit from an insurance discount.
But first, why do home insurance charges vary? That’s because your home insurance’s final value depends on many factors that may decrease or increase the overall risk.
So, for instance, if your current lifestyle and home shows that you might file a claim soon, the price of your insurance will be quite high. Similarly, some people have many different features in their homes that reduce the risk of any claim. And for that, home insurance companies in Chicago Illinois reward them with insurance discounts.
Here are some ways in which you can also get one:
1. Raise the deductible
A deductible is a specific amount you will have to pay before the insurance company starts to make payouts for your claim. This amount can vary but the higher deductible you pay, the more premium is saved.
So, for instance, most companies demand a deductible of at least $500. But if you are successful in paying $1000 for your deductibles, you might be eligible to get a 25% discount on your premium.
Have you heard of the concept, “buying in bulk?” While it applies perfectly to groceries and other shopping products, you can also enjoy a bulk discount by purchasing two or more insurance policies together.
For instance, by purchasing a home insurance with auto insurance, you can be eligible for a bundling discount and at the same time, make it easy for you to track all your policies together.
Please note that not all companies offer this facility on every insurance policy. So, before you make up your mind, call our agency and learn more.
3. Safety and security measures
Implementing some security measures in your house, you can reduce the risks of any break-ins and will eventually be eligible for some insurance discounts.
Moreover, other than getting a discount, safety measures alert you regarding any leakages and flare ups and are necessary to keep your family safe.
There are many devices that help make these measures possible. For instance:
- Smoke detectors
- Exterior doors
- Fire extinguishers
- Gas leak detectors
- Fire and burglar alarm system
- Water lead detectors
- Sprinkler system
Interestingly, most insurance companies offer a discount of 15 to 20 percent on the total premium value if you take some of the above measures. Moreover, many companies also offer additional incentives if you plan to buy the devices from their partner brands.
Before installing a system, make sure to evaluate the price that you might have to pay. Some of these devices are quite expensive. So, make sure to analyze the cost of buying a system and then weigh it against the discount you will get on your insurance.
4. Home improvements
With certain improvements and updates, you can make your Chicago home disaster-resistant to some level. And the more disaster resistant your home might be, the greater discounts you will get.
By installing storm shutters or an impact-resistant roof, you can reduce the risk of damage. Besides, you can renovate your home by utilizing stronger and more durable materials than before.
What’s more, if you live in an old home, you can retrofit it so it can bear all degrees of earthquakes in a better way. Besides, by upgrading your plumbing, electrical and heating system, you might also be eligible for some discount on your insurance premium.
5. Avail loyalty discounts
If you have stuck with one single insurance company for many years, you might also get offered with a loyalty discount. Some companies also offer such discounts to people who have referred many people to the company.
The loyalty discounts are not too high, maybe 10% only, but they help to reduce your overall premium value to some extent. Moreover, the percentage of discount might vary according to the number of years you have spent as their policyholder.
Also, note that not all companies encourage their clients with such discounts. So, make sure to double check with a representative before sealing the deal.
Now there are also a few insurance groups that offer discounts on the years you haven’t filed a claim. For instance, if you haven’t filed a claim for three to four years since you bought the insurance, the company might offer a discount that may last till you finally plan to use your home insurance.
7. Early signing
If your existing policy hasn’t expired yet and you have already signed up for your next home insurance, you might get a discount on early signing. Many companies offer renewal discounts for people who sign up for a policy before a certain date.
8. New home buyer
Don’t forget to mention your new-home-buyer status when buying an insurance policy. If this is your first time buying a home insurance for a home that you have recently bought, you might qualify for a discount.
The discount percentage may vary from company to company, so it is always wise to double-check with your possible insurance company.
9. Maintain a solid record
If your credit history is good, you might make some savings regarding your premium. Many insurers evaluate the credit history of homeowners before pricing their insurance.
So, to have a good credit history, ensure to pay all your bills on time. In addition, analyze your credit balances and keep them as low as possible. Additionally, do not lend money more than your current financial value.
10. Seek other discounts
If you are above 55 and are also retired, you might get a discount on your premium. That’s because you are more likely to stay at home than people going out to work and are less likely to get attacked from a burglary or a fire disaster in your home.
So, in that case, communicate with your insurer for any discount you can get on your home insurance. Some companies can give you a discount of up to 10% which can make a good difference to your premium cost.
11. Consider insurance before buying a home
Interestingly, factors such as your new home’s location can also help you get a discount. If your home is in a community with facilities such as a fire hydrant or fire department, you might have to pay a smaller amount for insurance.
Similarly, if you live in a newly built house with perfect wirings, and systems, you might also be eligible for a discount. Again, the value of the discount depends on the company’s policies and their evaluations.
Do discounts on Chicago home insurance really work?
Yes, they do! But not all discounts work equally. A few discounts work right on spot while for others you might have to make some improvements before reaping their benefits.
For instance, an early signing discount will decrease the value of your premium as soon as you avail it. However, for discounts related to security measures, you will have to install a device first before qualifying for that particular discount.
Here are a few other features of a discount on your home insurance that you should know about:
- Most discounts on home insurances are capped. Many companies set a limit, for instance 40% and don’t offer a discount more than this capped percentage. Moreover, every company has their individual capped percentages which may vary for different policies.
- You might have come across the term “up to” when seeking a discount. This term means that the maximum amount of discount is a certain amount but not all are eligible for it. Moreover, if the maximum discount percentage is 10%, you might have to follow a specific criterion to get it.
- Discounts are attractive but they shouldn’t be your only consideration when choosing an insurance. Some companies have high insurance costs, so they offer discounts to compensate for and cover these charges. It is best to shop around and get different quotes before sealing a deal with a certain insurance company.
Other ways to save money on insurance
Other than discounts, you can also save your insurance money, if you
- Don’t smoke
- Live in a gated community
- Are a part of a certain occupation, such as military or police
- Are retired
Get in Touch With Us
We want to hear from you about your Home Insurance concerns. No Home Insurance job in Chicago is too big or too small for our experienced team!
Frequently asked questions
Here are some common questions asked by users like you, seeking a discount for home insurance.
What does insurance to value discount mean?
Insurance to value refers to the amount entirely equal to replacement cost. This means that you have insured your house for an amount that makes 100% of your replacement cost. In that case, some companies offer discounts, but the value may vary with different policies.
Should I include the value of my land while applying for home insurance?
No, you shouldn’t. The land doesn’t get affected by windstorms or theft. So, if you include the amount, you might end up paying a high premium amount.
So, if you want to get a discounted cost, exclude the value of your land from the rebuilding costs.
At Second Home Insurance Solutions, we offer many discounts depending on your case. Please get in touch to see what we have got to offer you.