Home insurance is a critical safety net for protecting your property against risks like fire, theft, and natural disasters. But while it provides peace of mind, home insurance premiums can sometimes feel like a burden—especially with rising costs across the U.S. in recent years.
The good news? You don’t have to sacrifice coverage to save money. In this guide, we’ll explore smart, actionable ways to lower your home insurance premiums—without leaving your home vulnerable.
One of the easiest and most effective ways to lower your premium is to compare quotes from multiple insurance companies. Prices for the same level of coverage can vary dramatically between providers.
Use online comparison tools or contact agents directly. Make sure you’re comparing apples to apples—identical coverage amounts, deductibles, and endorsements.
Tip: Get quotes from at least 3–5 insurers, including national companies like:
Also, consider newer digital insurers like Lemonade or Hippo for competitive pricing and fast service.
Most insurance providers offer a multi-policy discount—often up to 25%—when you bundle your home and auto insurance together.
Bundling not only saves money but also simplifies billing and claims processes. Some companies also allow bundling with life, RV, or umbrella insurance.
Before switching, be sure to compare the bundled price with separate policies to ensure it’s truly a better deal.
Your deductible is the amount you pay out of pocket before your insurance kicks in. By choosing a higher deductible, you’ll pay lower premiums.
For example:
Just make sure you have enough savings to cover the deductible in case you need to file a claim.
Insurance companies reward homeowners who take steps to reduce the risk of damage or theft.
You can often qualify for discounts by installing:
Be sure to notify your insurer if you make these upgrades so they can apply the appropriate discounts.
In many states, insurers use your credit-based insurance score as a factor in determining your premium. A higher credit score often leads to lower home insurance rates.
To improve your score:
If your score has improved significantly since you first purchased your policy, ask your insurer to re-evaluate your premium.
Filing frequent or small claims can raise your premiums over time. Insurers may see you as a high-risk customer—even if the claims were legitimate.
Whenever possible, consider paying for minor damages out-of-pocket rather than filing a claim.
Also, avoid filing claims for issues that aren’t covered, as denied claims can still affect your record.
Many homeowners buy a policy once and forget to review it. But your home’s value, contents, and risks can change over time.
Each year, reassess your insurance needs, and look for ways to:
Make sure you’re not over-insured—but don’t under-insure just to save money.
Many insurance companies offer a wide range of discounts—but you might not get them unless you ask.
Common home insurance discounts include:
Contact your insurer and ask what discounts you qualify for—it could lower your premium significantly.
Older homes with outdated infrastructure are seen as higher risks by insurers. Modernizing your home’s systems can result in major savings.
You might get discounts for:
While these improvements have upfront costs, they boost your home’s safety, energy efficiency, resale value—and may lower insurance premiums.
Insurers often give steep discounts—sometimes up to 20%—for homes with professionally monitored security systems that automatically alert authorities in case of break-ins or fire.
Companies like ADT, SimpliSafe, and Ring offer affordable, DIY-friendly systems that qualify for discounts with most insurers.
Check with your insurer to ensure the system you choose meets their requirements for the discount.
Sometimes, you may be paying twice for the same type of protection.
Example:
If you already have valuable electronics covered under a manufacturer’s warranty or a credit card’s protection plan, you may not need additional riders on your home insurance.
Take inventory of your overlapping coverage and remove unnecessary extras to reduce your premiums.
If your current insurer won’t lower your rate—even after security upgrades, loyalty, or better credit—it may be time to switch companies.
There’s no penalty for switching before your policy renews, although it’s ideal to time the switch close to the renewal date.
Make sure your new policy starts the same day the old one ends to avoid any coverage gaps.
While home insurance is essential for financial protection, you shouldn’t have to overpay for it. From bundling policies and raising your deductible to making home upgrades and improving your credit, there are dozens of ways to reduce your premiums without sacrificing peace of mind.
Remember to review your policy each year, ask about all available discounts, and compare quotes regularly. With a proactive approach, you can ensure you’re getting the best possible protection at the lowest possible price.