Living in a gated community can have its advantages. Peace of mind, privacy, security, and less traffic are just some of the reasons why people chose to buy homes in an enclosed neighborhood. One advantage that’s usually forgotten is a reduction in your home insurance premium through the gated community home discount.
A gated community is defined as a residential area or neighborhood that is encircled by a gate, wall, or fence. The roads and homes within the gated community are only accessible to those individuals possessing the right credentials, which they are asked to show when arriving at the main gate. There are usually guards at the entrances and CCTV cameras monitoring the neighborhood. The community may have some shared amenities that require a monthly fee to maintain, including a swimming pool, golf course, tennis courts, and/or playground.
If you live in a gated community, talk to your independent homeowners insurance agent about whether or not you qualify for a discount. The discount will vary from one insurance company to another, but it can range between five and twenty percent.
The appeal of a gated community to homebuyers is also the same for insurance companies: security. Having a protective gate surrounding your neighborhood, setting up security cameras throughout the community, and having guards patrol the area are all deterrents to vandals and burglars. Criminals want an easy target with limited barriers between them and the property they are intending to steal. They simply won’t go through the trouble of robbing a home in a gated community if there are other less-protected homes nearby.
According to Sean Meehan of Travelers Insurance, a gated community, “definitely falls under loss mitigation…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.” It is less likely that a homeowner in a gated community will experience a loss due to criminal activity. As a result, there will be fewer claims filed, and fewer insurance payouts. Insurance companies want to reward you for choosing a home with these additional layers of protection with a discount on your home insurance.
If your gated community requires an HOA, you are also in luck. Many homeowners insurance carriers offer a homeowner’s association home discount. This can range between five and ten percent off your premium. To find out more about the HOA discount and to see if you qualify, click here.
No Gates? No Problem.
Keep in mind that your insurance is based on where you live. Even if your home isn’t in a gated community, your agent still might offer you lower rates. The geographic location of your home matters, whether it is in an urban, suburban, or rural area, or simply in a statistically safer side of town.
When you move into a new home, your independent insurance agent will ask you several questions about the property and its location. Your zip code is a factor they will consider when determining your rates. If your home is located in an area that experiences fewer break-ins, fewer incidents of vandalism, and less violent crimes, then you are likely to have a lower home insurance premium.
Talk to an Agent
Call or schedule an in-person meeting with your independent insurance agent. They will have the knowledge and experience needed to recommend the right home insurance for you. They will be able to determine the discounts available to you, including the gated community home discount. Other reductions may be applied to your rate as well, including the protective devices discount, HOA discount, and insured to value discount.
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