The Unexpected Way A Fence Could Lower Your Homeowner's Insurance

You may already know that a fence can increase the value of your home by making it more attractive to buyers. But the barrier may also save you some money by helping you reduce your homeowners' insurance rate. You may not realize it, but some insurance company underwriters will slash your rate because the fence lowers the chances of a burglar or vandal striking your home. After all, they play a key role in defining property lines and property ownership, which deter criminals. Multiple studies show that homes with fences have fewer instances of crime than properties without them, and the U.S. Department of Transportation promotes them as beneficial for crime prevention. The National Institute of Crime Prevention (NICP) even offers courses on the way barriers, landscaping, and lighting can play a role in limiting crime.

So what exactly is homeowners' insurance? It typically includes protection for personal injury claims against you. If someone comes onto your property legally and suffers an injury because of a dangerous condition, you (and your insurance company) could be liable for medical costs and other financial judgments. A fence can reduce the likelihood that you will be found responsible in a premises liability or personal injury lawsuit, so the company may cut your rate if your home has one. A sturdy fence also keeps your dog inside the property, reducing the chances of a dog bite injury lawsuit.

Unfortunately, adding a fence to try to save on insurance rates is probably not a good financial choice. Some companies don't provide discounts if you have a barrier, so you may have to shop around, and you might have to ask directly for a reduced price. The deduction itself varies among insurance carriers, too, so you can't be certain you'll receive a big cut by adding a fence.

Some carriers may require you to install a certain type or size of fence from a professional installer. An insurer may also require you to set up lighting and security system components to receive any discount. If you meet all the company's criteria for security systems — including any requirements for a fence  — Insurify says you could receive up to a 15% discount on your rates.

According to Angi, the average fence will cost about $3,200 for a homeowner to construct. Considering they typically last about 15 years, you'd have to receive a discount on your insurance of about $207 per year for the barrier to pay for itself over its lifetime. You'll have to run the math based on your personal homeowners' insurance cost to determine whether the cost of the fence will pay for itself through lower premiums. Ultimately, you should probably build a barrier because you want one and accept any insurance rate discount as an added bonus, rather than hoping it will pay for itself through an insurance discount.