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Common Homeowners Insurance Discounts, or Credits

Dan Zlotnick avatar
Written by Dan Zlotnick
Updated this week

Many homeowners are eligible for home insurance discounts (often called “credits”) based on features, devices, and proactive maintenance in their home. These credits reward steps that reduce the likelihood or severity of damage—and can meaningfully lower your annual premium.

Below are some of the most common credits carriers look for and why they matter.


Security & Monitoring Credits

Examples include:

  • Monitored burglar alarms

  • Fire or smoke alarms connected to a central station

  • Professional monitoring services

Why they matter:
Monitored systems reduce the risk of theft, fire damage, and total loss by enabling faster response when something goes wrong.


Water Damage Prevention Credits

Examples include:

  • Water leak detection sensors

  • Automatic water shutoff valves

  • Smart plumbing monitoring systems

Why they matter:
Water damage is one of the most frequent and expensive homeowner claims. Early detection and automatic shutoff can significantly reduce losses.


Fire Safety Credits

Examples include:

  • Smoke detectors and fire extinguishers

  • Residential sprinkler systems

  • Fire-resistant materials or assemblies

Why they matter:
Fire prevention and early suppression lower claim severity and improve overall home safety.


Electrical, Plumbing, and HVAC Update Credits

Examples include:

  • Updated electrical panels or wiring

  • New or upgraded plumbing systems

  • Modern heating and cooling equipment

Why they matter:
Newer systems are less likely to fail or cause secondary damage, making them lower risk from an insurance perspective.


Professional HVAC Maintenance Credits

Examples include:

  • Annual or biannual HVAC maintenance contracts

  • Documented professional servicing and inspections

  • Ongoing system care agreements

Why they matter:
Regular professional maintenance reduces the risk of system failure, overheating, freeze-related damage, and water leaks from HVAC components. Some carriers recognize documented maintenance as a loss-mitigation factor—especially when paired with newer equipment.


Roof & Structural Credits

Examples include:

  • Recently replaced roofs

  • Impact-resistant or fire-rated roofing materials

  • Wind or hail mitigation features

Why they matter:
Stronger, newer roofs reduce storm-related losses and are a major focus for insurers.


Smart Home & Loss Mitigation Credits

Examples include:

  • Smart smoke and CO detectors

  • Freeze sensors

  • Environmental monitoring devices

Why they matter:
Connected devices allow for earlier intervention and faster response, reducing damage severity.


Why Credits Aren’t Always Automatic

Even if you have qualifying features or maintenance in place, credits may not be applied unless:

  • Your carrier is aware of them

  • Documentation is provided

  • The feature meets carrier-specific requirements

That’s why proactively requesting a review matters.


How Rafter Helps

Rafter helps homeowners:

  • Identify which credits may apply

  • Request a broker review

  • Gather documentation (including service contracts and invoices)

  • Explore additional ways to reduce premiums

Credits vary by carrier and policy, but understanding what’s commonly recognized is the first step toward unlocking potential savings.

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