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What are home insurance credits?

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Home insurance credits are special insurance company discounts given to people who qualify. One of the most common homeowner’s insurance credits is the one you get for installing smoke detectors on each floor of the home, and most credits will serve some risk-mitigating purpose, like a smoke alarm does.

Another insurance credit comes from living in a gated community, or living in a home that only accessible through a secure gate and fence. For example, an electronic gate that opens by remote control or using a passcode is a good way to reduce your home insurance rates.

If your home is an older one, you may be eligible for an insurance credit by updating the wiring in the home. For insurance companies, older wiring in a home is severe fire risk, so giving you a discount on home insurance when you replace those older wires is just their way of giving you credit for reducing the risks.

Roofing materials have advanced in recent years, and your insurance company would like for you to install a new one. By installing a new roof using impact resistant materials, you may qualify for a home insurance credit based on the idea that a tougher roof reduces the potential for damages and repair. Not all insurance companies offer this credit, so check with your insurer before you start replacing your roof solely to get an insurance credit.

Other potential home insurance credits include installing a security system that is monitored off-site, the actual materials your home is built from, and things such as the crime rate in the area where the home is located. If you think of insurance credits as potential discounts, it is easy to see how they compare to, for example, the many discounts available for car insurance.

answered May 16, 2015 by anonymous
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