Home insurance is essential for protecting your property, belongings, and financial future—but that doesn’t mean you need to overpay for it. With the right strategies, homeowners can significantly reduce their premiums without sacrificing important coverage. This guide explains the most effective ways to lower your home insurance costs while keeping your home well protected.
Shop Around and Compare Quotes Annually
One of the easiest and most effective ways to lower your home insurance cost is to compare quotes from multiple insurers. Rates can vary due to:
- Updated risk models
- Recent claims in your area
- Company-specific pricing changes
- New discount programs
Get at least three quotes and compare identical coverage levels, deductibles, and endorsements.
Increase Your Deductible
Your deductible has a major impact on your premium.
- Higher deductible → lower premium
- Lower deductible → higher premium
Raising your deductible from $500 to $1,000 can drop your premium significantly.
Just make sure you have enough savings to cover the deductible in case of a claim.
Bundle Home and Auto Insurance
Bundling home and auto (or renters) insurance can save 10–25% depending on your insurer.
Additional policies that may also qualify for bundling discounts:
- Motorcycle
- Life
- RV
- Boat
Bundling simplifies billing and can unlock significant savings.
Improve Home Safety and Security
Insurers reward homeowners who reduce risk. You can lower premiums by adding:
- Monitored security system
- Smoke and carbon monoxide detectors
- Smart home sensors
- Deadbolt locks
- Fire extinguishers
- Water leak detectors
- Sprinkler systems
Many insurers offer discounts for professionally monitored security systems.
Make Home Upgrades That Lower Risk
Certain improvements reduce the likelihood of claims, and insurers may offer discounts for:
- New roofing (especially impact-resistant materials)
- Updated electrical wiring
- Updated plumbing systems
- Windstorm mitigation features
- Storm shutters
- Reinforced garage doors
Modernizing older home systems is one of the best long-term savings strategies.
Maintain a Good Credit Score (Where Applicable)
In most states, insurers use credit-based insurance scores to determine premiums.
Ways to improve your score:
- Pay bills on time
- Reduce credit card balances
- Avoid applying for unnecessary credit
- Review credit reports for errors
A stronger credit score almost always results in lower home insurance costs.
Review and Remove Unnecessary Optional Coverages
While you should never reduce essential protections, some homeowners pay for add-ons they don’t actually need.
You may be able to adjust or remove:
- Extended personal property riders
- Extra jewelry or collectible endorsements
- Identity theft coverage (if redundant)
- Certain water protection riders
Always review with your insurer before removing coverage.
Avoid Filing Small Claims
Frequent claims—even small ones—can raise your premium for years.
If a loss only slightly exceeds your deductible, it may be cheaper long-term to pay out-of-pocket and maintain a claims-free history.
Ask About Additional Discounts
Many homeowners miss out on discounts because they don’t ask.
Common discounts include:
- Claims-free
- New home purchase
- Gated community
- Senior discount
- Loyalty discount
- Paperless billing
- Autopay
- Smart home device discount
Review your insurer’s full discount list yearly.
Update Your Coverage After Major Changes
Your home insurance should evolve with your life. Review your policy after:
- Renovations
- New valuables
- Major purchases
- A home office setup
- Energy-efficient upgrades
- Household changes (marriage, kids, etc.)
Updating coverage helps avoid overpaying or being underinsured.
Reassess Your Personal Property Inventory
Many policies include default personal property coverage limits that may exceed what you actually need—especially if you’ve decluttered, downsized, or moved.
Reevaluating your belongings can help you adjust limits and reduce costs.