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15 Ways to Lower Your Homeowners Insurance Premium

Author Icon By Stephanie Koncewicz Updated 03/18/2024

Homeowners insurance policies can protect your wallet when the unexpected occurs, allowing you to rebuild after natural disasters, theft, and other catastrophic events. The point of a policy is to save you money in the long run—but it does mean paying a premium upfront.

Different homeowners insurance companies charge different amounts for their coverage, and you could be missing out on deals and discounts if you don’t do your research and periodically review your policy. We’ve identified the top 15 ways to lower your homeowners insurance premium.


What Are 15 Ways to Lower My Homeowners Insurance Premium?

Below, our team will walk you through 15 strategies that can help you find and maintain the lowest rates on a homeowners insurance policy.

1. Shop Around

Choosing a reputable company with many discounts and a high degree of financial stability can save you a lot of money. Research insurers’ details and complaints history through the National Association of Insurance Commissioners and look into their financial ratings from Moody’s and AM Best. Shop around every few years to make sure you’re consistently getting the best deal.

We always recommend reaching out to at least three homeowners insurance companies for quotes before you make your final decision. We’ve reviewed many of the most popular providers to help you find the best homeowners insurance companies to work with.

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2. Research All Available Discounts

Different companies offer different discounts, and sometimes these vary by state. Here are some common things that may qualify you for a discount:

  • Being over age 55 and/or being retired
  • Signing up to autopay your premium
  • Owning a home that’s less than 5 years old
  • Signing up for paperless billing
  • Upgrading roof or windows
  • Installing energy-efficient features

Before you sign up for a policy, always research to see how many you qualify for. Ask your insurance agent for a full list.

3. Talk to an Insurance Agent

As you’re getting started, speak with a local insurance agent to learn what the coverage includes—and what it doesn’t. Make a list of questions to ask and ensure that you get a satisfactory answer to each one. Some companies have more expensive basic policies that are more comprehensive, but you don’t want to pay for any coverage you might not need. Even after you buy, you might want to check in with your agent every year to discuss any changes to your policy renewal.

4. Raise Your Deductible

Your homeowners insurance deductible is the amount you must pay toward a loss before your insurance provider starts to pay a claim. Higher deductibles translate to lower premiums because you pay more out of pocket when you file a claim. Most homeowners opt for a deductible of $1,000, but $500 and other amounts are available from many companies.

Keep in mind that you should be practical when choosing your deductible. Going too high could backfire—you need to be able to afford the deductible out of pocket. In addition, your policy could have separate deductibles for different kinds of damage, like hail storms, earthquakes, or wind storms.

5. File Claims Wisely

Homeowners insurance companies can penalize you over time for being a high-risk customer or making excess claims. They can raise your premium and, in some cases, even cancel your policy if too many small claims rack up—which can make purchasing another policy from a different company challenging. On the flip side, many insurers offer additional discounts for going a certain number of years without filing a claim. So if repairing small amounts of damage is affordable, you may be better off paying for it out of pocket rather than filing a claim.

6. Purchase Your Home and Auto Policies From the Same Insurer

Bundling your home and auto insurance policies can save you an average of 18%. In general, this is more cost-effective than buying coverage from multiple companies, but don’t assume this is always the case. That’s why shopping around is so important. Some companies allow bundling of home and life insurance, as well.

7. Be a Loyal Customer

Many home insurance companies reward loyal customers. Staying with the same insurance company for a number of years—usually at least 3–5 years—can lead to financial rewards. Being a long-term policyholder has this perk, but it’s still worth comparing your current rate with competitors every few years.

8. Invest in Security Features

Improving your home security by installing protective devices like deadbolt locks, burglar alarms, or smoke detectors can earn you significant discounts. Some companies give greater and greater discounts depending on the degree of sophistication of these devices. For example, a company might cut comparatively more from your premium if you install alarms that automatically call the police. Note that not all security systems will qualify you for discounts, so check with your insurer for recommendations.

9. Prep Your Home for Disasters

Making your home more disaster-resistant can save you money. Check with your insurance agent to see if installing features like storm shutters or modernizing plumbing, heating, and electrical systems will result in a lower premium. This can also apply to retrofitting older homes or reinforcing your roof. These undertakings are expensive upfront, but they can ultimately pay off.

10. Maintain a Strong Credit Score

You can reduce your homeowners insurance costs by establishing a solid credit history, as homeowners insurance companies often use credit information to determine quotes. Having bad credit makes you seem like a high-risk customer, which will drive your premium up.

Maintain a solid credit score by keeping your credit balances low, paying your bills on time, and being careful not to obtain more credit than you need. Keep an eye on your credit score and report any errors as soon as you spot them.

11. Review Your Policy Limits and Take Inventory Annually

You never want to pay for coverage that you don’t need. Expensive items like electronics and appliances typically decrease in value over time, so you may need to lower your floater for “valuable” items. The same is true if you’ve sold expensive items. There are a variety of home inventory apps online to help you catalogue your items and their value.

12. Pay Annually

Many homeowners insurance companies charge fees to customers who make monthly insurance payments. Often, you can save money by paying in full when the billing cycle begins.

13. Lower Flooding Risk

Flood damage is not covered by most home insurance companies, but it is the number one insurance claim in the country. You can take steps to decrease your insurance premium if you reside in a high-risk flood zone by elevating your home and utilities and installing the right flood openings.

14. Consider Key Factors When Buying a Home

If your goal is lowering your insurance premium on a new home, there are a variety of factors to take into account when home shopping. Close proximity to fire stations, fire hydrants, and emergency stations can lower the amount you pay. You can also look into homes with newer heating, plumbing, and electrical systems. Pay attention to construction materials, as homes classified as “superior” have exteriors made of noncombustible materials and cost less to insure.

15. Eliminate Safety Hazards

Some home insurance companies charge extra for “attractive nuisances” like a pool, playground set, or trampoline. Getting rid of them can lower your premium. In some cases, building a gate or fence around the pool will solve the issue.


FAQ About Lowering Your Homeowners Insurance Premium

Is homeowners insurance negotiable?

You cannot negotiate your homeowners insurance quote, but you can lower the amount you pay by taking a variety of steps like maintaining a good credit score, paying in full, installing a security system, and researching discounts.

Why is my homeowners insurance quote so high?

Your homeowners insurance quote could be high because some companies charge more than others in general—and there are other factors, like the crime rate in your area, whether you’re in a flood zone, your credit score, and more.

How much should my homeowners insurance be?

In 2020, the average annual cost of homeowners insurance nationwide was $1,311, according to the Insurance Information Institute. Regarding the amount of coverage, the majority of homeowners insurance policies provide $100,000 worth of liability at minimum.

What home insurance is the cheapest?

This will depend on the amount of coverage you are getting for your money—the lowest dollar amount isn’t necessarily the best deal. According to our research, Lemonade has the lowest monthly rates of companies we’ve reviewed, starting at $25 per month.

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