April 4, 2012
When looking for ways to save on home insurance, many homeowners stop at a smoke detector, a security system and a multiline discount for insuring your home and vehicle with the same company.
But property and casualty companies have a variety of other lesser-known credits available that can shave your homeowners insurance premium by up to 25 percent.”
Here are 10 “hidden” home credits that may be available through your agent to cut down the cost of home insurance. Discount estimates are courtesy of the Big I.
Gated Community: Have Peace of Mind
Do you live in a gated community? Your home insurer shares your peace of mind in knowing there’s a layer of security between you and home invaders, and may be willing to credit you for lessening their risk.
“That definitely falls under loss mitigation,” says Meehan. “If you live in a gated community, it’s a lot less attractive to a thief than a place that doesn’t have that security.”
Gated community credit: 5 percent to 20 percent.
New Wiring: Save Money and Lives
Want to scare your insurance agent? Tell him your teenage son rewired your house over the weekend. Then expect your premium to go through the roof.
The math is simple: house + old wires = fires. According to the U.S. Fire Administration, in a typical year, home electrical problems result in 67,800 home fires, 485 deaths and $868 million in property losses, according to a 2006 report. The USFA estimates that home wiring causes twice as many fires as electrical appliances.
New wiring credit: 10 percent.
Impact-Resistant Roofing: Grab a Hard Hat
Your roof is a major concern to your insurance company. Not only does it take a beating from wind, rain, hail and hurricane-blown debris, but once it’s compromised, the damage costs on a home insurance claim can rise dramatically.
So it comes as no surprise that, as more and more impact-resistant roofing materials have come to the market, insurers have been increasingly willing to offer rate discounts to homeowners as an incentive to invest in a “hard hat” for their abodes.
Your state’s department of insurance can direct you to information about impact-resistant UL 2218 standard roofing material, which is graded as Class 1 through 4, with Class 4 being the sturdiest. Insurers may require that your roofing material be tested by an approved laboratory before issuing a credit. The upgrade may also net you a tax deduction.
“Insurers definitely are giving discounts for Class 4 because, if your roof blows off in a rainstorm or nor’easter, the water damage is going to be substantial, resulting in a much larger claim,” says Flannagan. “They definitely want you to protect yourself against that.”
Impact-resistant roofing credit: 5 percent to 10 percent.
Claims-Free Credit: No Claims is Good News
You know that good-driver discount the auto insurance companies offer? A claims-free credit is the home insurance equivalent.
The reason is pretty simple: Your absence of claims keeps more money in your insurer’s pocket. And increasingly, they’re willing to pass some of that savings on to you by shaving your home insurance premium.
Claims-free credit: 20 percent
Homeowners Association: Keep Risk at Bay
As strange as it seems, some home insurance companies will give you credit for the company you keep — as long as that company is in the form of a neighborhood homeowners association, or HOA.
Homeowners association credit: 5 percent to 10 percent.
New Ratings Models: This Year’s Could Cost Less
Home insurance is a changeable business, in large part because real estate is a dynamic market. Actuarial experts crunch the numbers as neighborhood values rise and fall and construction costs ebb and flow in order to develop models that help insurance companies manage their risk.
Since your homeowners insurance rate naturally flows from these models, it follows that rates can change as well — sometimes in your favor. In some cases, new models are used to establish lower rates to attract new customers.
New ratings credit: Call your agent. Sometimes, you can even save money by applying for a new policy with the same company.
New Home or Renovation: Have Fewer Safety Risks
If you’re considering a renovation, check with your insurance agent first. They may have suggestions on how to tweak your project to maximize your home insurance savings.
New home or renovation credit: up to 25 percent.
Nonsmoker Credit: Kick the Habit for Lower Rates
Where there’s smoke, there’s fire. Unfortunately.
Even though the number of smokers nationwide is in decline, smoking remains the No. 1 cause of home fire fatalities in the United States. According to the U.S. Fire Administration, smoking caused 18,900 residential fires in 2007, killing 595, injuring 1,200 and causing $327 million in residential property loss.
Home insurance companies generally raise their rates if there’s a smoker in the household. Will they conversely offer you a discount if your home is smokeless?
Nonsmoker credit: 5 percent to 15 percent.
Mature Insured: Age Has its Privileges
Home insurers love retired customers because they tend to spend more time at home, where they might be able to detect a home hazard in the making — a gas leak, pipe break or smoldering electrical panel — and avert a disaster.
If you or your spouse are 55 or older and retired, and your home is your permanent residence, you may qualify for a mature insured credit.
Retired or 55+ credit: 10 percent to 25 percent.
High-Tech Sensors: Create a Safer Home
Water sensors come in two varieties. Passive leak detectors are inexpensive stand-alone devices that emit an alarm and/or flashing light when moisture is detected. Active leak detectors signal a leak and shut off the water source. Active systems may be installed on individual appliances or as a whole house solution. Gas detectors are most often passive.
Sensor credit: 5 percent to 10 percent.
This information courtesy of and provided by By Jay MacDonald | Bankrate.com – Thu, Feb 17, 2011 3:00 AM EST
Hollis grew up in Cherryfield, ME and has the fondest childhood memories of playing baseball during the summer and basketball in the winter months. He later attended Narraguagus High School in Harrington, ME where he was part of the Varsity Basketball team, took part in cross country and even ran the NY City Marathon. After high school, Hollis attended The University of Maine and took up long distance running. Dedicated to running, he continued to run numerous marathons throughout his college career. After college he owned and operated a seasonal restaurant in Eastern Maine. In 1983 he decided to become a third generation worker for the family owned business, JC Milliken Agency. For 11 years Hollis took on many positions at JC Milliken until in 1994 he came to land his current role as the president. He enjoys the automation side of running the business and keeping his company in the forefront. He loves to figure out new strategies in marketing especially now considering the countries current economic challenges. On a personal side, Hollis is married with two grown boys and loves spending time with his family, watching movies, and he loves animals.
Tired of brown-bagging your lunch? Sick of staying at home for vacation? One easy way to make the most of your money is to take a look at your 
Whether you’re looking for insurance for your home or business, 
We provide an 
J.C. Milliken Agency
