Home insurance protects one of your most valuable assets—but that doesn’t mean you should overpay for coverage. Most homeowners qualify for multiple discounts that can significantly reduce their annual premium, yet many never take advantage of them. This guide breaks down the most effective ways to get discounts on home insurance and lower your costs without sacrificing protection.
Why Do Home Insurance Companies Offer Discounts?
Insurance carriers reward homeowners who reduce risk. When your home is safer, more secure, and less likely to suffer damage, insurers are willing to pass those savings on to you.
Discounts help insurers encourage:
- Better home maintenance
- Fewer claims
- Reduced risk of theft or fire
- Use of modern building materials
- Long-term customer retention
Understanding these incentives helps you maximize your savings.
1. Bundle Home and Auto Insurance
One of the easiest and largest home insurance discounts is bundling. Most insurers offer 10–25% off when you combine:
- Home + Auto
- Home + Renters
- Home + Life
- Home + Umbrella coverage
Bundling simplifies billing, strengthens loyalty, and can unlock additional perks.
Tip: Always compare bundled pricing across insurers—bundles aren’t always the cheapest overall.
2. Improve Home Security
Adding safety and security features can lower your premium because they reduce the likelihood of theft or damage.
Common discounts apply to:
- Monitored alarm systems
- Smart home security systems
- Video surveillance cameras
- Deadbolt locks
- Motion-activated lighting
- Smart smoke detectors
- Fire alarms
- Water-leak sensors
Homes equipped with monitored fire and security systems often qualify for 5–15% savings.
3. Install Fire Safety Features
Fire-related claims are among the most expensive for insurers. You may earn discounts for:
- Smart smoke and CO detectors
- Fire extinguishers
- Sprinkler systems
- Fire-resistant roofing or siding
- Heat sensors
Even small upgrades can lead to noticeable discounts.
4. Raise Your Deductible
Choosing a higher deductible reduces your monthly premium because you take on more out-of-pocket cost in the event of a claim.
For example:
- Raising your deductible from $500 → $1,000
- Often reduces premiums by 5–10%
This strategy works best if you have savings set aside for emergencies.
5. Improve Your Home’s Structure and Materials
Modern, durable building materials lower risk. Discounts may apply when you update:
- Roofing
- Plumbing systems
- Electrical wiring
- HVAC systems
- Windows (especially storm-resistant)
- Siding and insulation
A new roof alone can reduce premiums by 10–20%, especially in storm-prone regions.
6. Mitigate Weather Risks
Depending on your location, you may qualify for discounts by reinforcing your home against natural disasters.
Examples include:
- Hurricane shutters
- Storm-resistant roofing
- Earthquake retrofitting
- Wind-resistant doors and windows
- Flood mitigation upgrades
States prone to hurricanes, tornadoes, or earthquakes often offer the largest weather-related discounts.
7. Maintain a Good Credit Score (Where Allowed)
In many states, insurers use credit-based insurance scoring to assess risk. A higher credit score often leads to lower premiums.
States that prohibit credit scoring for home insurance:
California, Maryland, Massachusetts, and Hawaii.
In all other states, improving your credit can have a direct impact on your home insurance cost.
8. Stay Claims-Free
Homeowners who go several years without filing claims often receive claims-free discounts. Filing fewer claims also helps prevent rate increases at renewal.
Tip: Avoid filing small claims whenever possible—paying minor repairs out of pocket is often cheaper long term.
9. Ask About Loyalty Discounts
Insurers often reward long-term customers with savings, typically after:
- 3 years
- 5 years
- 10 years
Loyalty discounts vary but can range from 5–10%.
10. Upgrade to Smart Home Technology
Smart tech reduces risk and helps insurers prevent future claims.
Qualifying devices include:
- Smart thermostats
- Water leak detectors with auto-shutoff
- Wi-Fi connected smoke/CO detectors
- Smart doorbells
- Smart locks
Some companies offer instant discounts just for installing these devices.
11. Remove High-Risk Features
Certain features make homes riskier and more expensive to insure. You may lower your premium by removing or securing:
- Trampolines
- Diving boards
- Outdated wood-burning stoves
- Unfenced pools
Even upgrading fencing or pool covers can reduce your costs.
12. Shop Around Regularly
Insurance premiums change year to year, and shopping around can reveal better rates—or new insurers offering bigger discounts.
Experts recommend comparing quotes:
- Every 1–2 years
- After major upgrades
- After roof replacements
- After major changes in home value
A different insurer may view your home’s risk profile more favorably.
13. Pay Your Premium in Full
Paying your annual premium upfront instead of monthly can qualify you for:
- Pay-in-full discounts
- Lower installment fees
- Reduced administrative charges
This usually saves 3–8% depending on the insurer.
14. Ask About Lesser-Known Discounts
You may qualify for additional savings if you are:
- A teacher
- Military personnel or veteran
- A first-time homeowner
- A retiree
- Part of certain professional groups
Affinity discounts vary widely, but many homeowners qualify without realizing it.
Final Thoughts
Lowering your home insurance costs doesn’t mean lowering your protection. By combining multiple discounts—bundling, safety upgrades, smart home devices, maintenance improvements, and more—you can significantly reduce your premiums while improving the safety and resilience of your home.
Use this guide to maximize your savings and ensure you’re only paying for the coverage you truly need.