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What credits are available to lower homeowner’s premiums?

The following credits are available to reduce your client's Homeowners premium: 

  • Central Station Burglar Alarm Credit — a 5% credit is available for homes with burglar detection equipment that is monitored on an ongoing basis by an Underwriting Laboratories approved central station monitoring facility.
  • Central Station Fire Alarm Credit — a 5% credit is available for homes with fire detection equipment monitored on an ongoing basis by a U.L. approved central monitoring facility.
  • New House Credit — a credit is available for dwellings built within the last 10 years as shown below. The age of the dwelling is computed by subtracting the year of construction from the effective year of the policy. Credits vary by state. This credit does NOT apply if the Renovated House Credit applies.
  • Renovated House Credit — for dwellings that have been renovated within the last 10 years as shown below. A "renovated house" has had the plumbing, heating and electrical systems completely upgraded, including wiring, receptacles, circuit boxes and conduits in exposed areas. All renovations must be completed by a licensed contractor and comply with the local building codes. The actual amount of this credit varies by state. This credit does NOT apply if the New House Credit is applicable.
  • Guard/Gated Community Credit — depending on the state, a 5% or 10% credit is available for dwellings located in a guarded/gated community that meets all of the following criteria:
    o Vehicle access is limited to entrances controlled by guards or locked gates at all times
    o Proper identification is required to enter
    o Visitors are announced
  • Residential Sprinkler System Credit — a 5% credit is offered for dwellings that are partially protected by a properly maintained sprinkler system. A 10% credit is available for dwellings if ALL enclosed spaces are protected by a properly maintained sprinkler system. Protected areas must include:
    o All living areas
    o Basements
    o Garages
    o Mechanical areas
  • House Replacement Cost Credit — we offer a $5.00 credit if the Guaranteed Rebuilding Cost coverage on the dwelling is removed and Replacement Cost coverage is selected as the payment basis for the dwelling.
  • Companion Policy Credits — in some states, a credit is available on a Homeowners policy when the client has an Auto, Collections, Excess Liability, or Excess Flood policy. The exact percentage will vary.
  • Superior Protection Credits — credits are available for risks with extra protection. The maximum credit an insured can receive for superior protection is 10%.

What factors can increase a homeowner’s premium?

If applicable, the following surcharges will be applied to your Homeowners premium:

  • 25% Rented to Others Surcharge
  • 25% Minor Renovation Surcharge for homes undergoing minor renovations
  • 10% Seasonal/Secondary House Surcharge (may vary by state); does not apply if a full-time caretaker is present during the owner's absence
  • 25% Vacancy Surcharge for homes that are vacant for more than 30 days
  • Course of Constructions Surcharges vary by state.