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10 Homeowners Insurance Discounts to Lower Your Bill
If you own a home, insurance is a necessity and required if you have a mortgage. But your coverage might be costing you more than it should. You may qualify for a homeowners insurance discount or two.
Thankfully, there are ways to lower your monthly homeowners insurance premiums without sacrificing essential coverage.
Many insurance companies provide incentives and discounts that can help you save money and lower your homeowners insurance costs.
Tired of overpaying for homeowners insurance? We don’t blame you.
Small changes — like bundling your coverage and installing security features — can lead to a homeowners insurance discount that helps you save money.
Here are 10 ways to score a homeowners insurance discount and lower your monthly premium.
Adding certain security features and smart devices around the house can help save you 2% to 15% on your homeowners insurance. The exact discount will depend on the company, the devices you have and where you live.
Security and safety measures can include things like:
Some insurance companies even give a homeowners insurance discount for installing less high-tech safety features like deadbolts on exterior doors, fire extinguishers or even an automatic sprinkler system.
Insurance companies offer discounts if you install these gadgets or devices because they make your home safer. A safer home means less risk for the insurer.
You’ve probably heard the TV commercials from insurance companies like Progressive and Liberty Mutual.
You could save big by bundling your home and auto insurance!
They’re not wrong. Buying more than one policy from the same carrier tends to be one of the best and most widely available discounts you can get.
You can usually save anywhere from 5% to 15% on your homeowners premium by taking out two or more insurance policies with the same company, according to data from the Insurance Information Institute.
Bundling your auto and home insurance with a single carrier also makes it easy to keep track of all your coverage in one place.
Similarly, you can usually save money by insuring more than one home through a single insurance company.
While most people get a bundling discount with home and auto insurance policies, you can usually bundle home insurance with other types of coverage, like life insurance or RV insurance.
Have you completed any home renovations recently? You might have made yourself eligible for a homeowners insurance discount without even realizing it.
Many insurance companies will lower your homeowners insurance premiums if you upgrade your home with things like impact-resistant roofing, hurricane-resistant windows or storm shutters.
Contact your insurance company and request a new inspection of your home to evaluate the improvements and maximize your savings opportunities.
If you’ve been with the same insurance company for three years or more, you may qualify for a loyalty discount.
However, homeowners insurance loyalty discounts vary and not all companies offer them.
Something else to keep in mind: You might be able to save a lot more money by switching to a different insurance company than you would sticking with your long-standing insurer — even if they offer a loyalty discount.
Just like automobile insurance, homeowners insurance companies often give you a discount if you haven’t filed a claim for a certain amount of time.
Most insurance companies award this discount if you’ve been claim-free for either three or five years.
Raising your home insurance deductible is an easy way to save money on your monthly premiums.
Homeowners can shave an average of $260 off their insurance rate by raising their deductible from $500 to $2,500, according to a rate analysis by Insurance.com.
That’s because insurers realize you’ll probably file fewer claims if you have a higher deductible.
Keeping an extra $1,000 to $3,000 in your emergency fund can ensure you have the extra cash on hand to cover out-of-pocket expenses if you need to make a claim.
Most companies will give you a small homeowners insurance discount if you pay a year’s worth of insurance premiums up front. It’s similar to the discount you might receive by paying auto insurance premiums annually or every six months instead of paying month to month.
In this digital age, most insurers also offer modest discounts if you opt for paperless billing or pay your premium via automatic bank payments.
If your home was built in the last three to five years, you might be eligible for a discount.
That’s because features like new wiring and a new roof are less likely to fail and result in a costly insurance claim.
You may also be able to snag a discount by upgrading outdated plumbing and electrical systems on your existing home.
Some insurers reward you with a homeowners insurance discount for simply being you.
Here are a few examples:
Some lesser-known homeowners insurance discounts can also net you savings on your insurance policy.
Other discounts and ways to save include:
Many home insurance discounts take place automatically, so you don’t have to apply for them per se.
For example, if you bundle multiple policies with one carrier or pay your premiums in full for the year, these discounts will be factored into your policy without any extra leg work on your part.
However, it never hurts to give your home insurance company a call and ask if they can conduct a discount review to see if you qualify for additional savings.
This is especially helpful if you’ve recently made upgrades or improvements to your home, such as installing a security system or smoke alarms. Your home insurance agent may not be aware of the changes otherwise — and you could miss out on a lower rate.
It’s also important to note that insurance companies will cap how much you can save, even if you’re eligible for multiple home insurance discounts. For example, an insurance company may limit your savings to 20% to 35% total.
How many discounts you can receive varies. Check with your insurance company to see what discount amounts and limitations apply.
It pays to shop around.
While qualifying for a homeowners insurance discount can make your current policy more affordable, you might be able to save much more money by simply switching to a new company.
It’s generally recommended to comparison shop for home insurance once a year or so to ensure you’re getting the best deal.
It’s also important to understand how much home insurance coverage you actually need so you don’t overpay for your policy.
Many companies provide easy-to-use home insurance quote tools on their websites. You can ask an independent insurance agent or broker to shop around for you. Or, you can use comparison tools like EverQuote.
Rachel Christian is a Certified Educator in Personal Finance and a senior writer for The Penny Hoarder.
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