Where the savings are
- Shopping around is the biggest single saver: prices for the same home vary widely between insurers.
- Bundling home and auto insurance with one company is one of the most common discounts.
- A higher deductible, a newer roof and protective devices can all lower your rate.
- Do not cut liability or dwelling coverage to save money; those are the parts that protect you most.
In this article
Savings checklist
- Compare at least three insurers every year or two
- Ask about bundling home and auto insurance
- Raise your deductible only to an amount you could pay from savings
- Report upgrades: new roof, wiring, plumbing, alarms
Tips adapted from the Insurance Information Institute's guidance on lowering homeowners insurance costs.
Cheap homeowners insurance usually comes from smart choices, not thin coverage. Insurers reward lower risk, loyalty and fewer small claims, and they rarely volunteer the discounts you qualify for.
Work through this list with your current policy in hand. Most people find at least two or three things to change.
11 ways to get cheaper homeowners insurance
- Compare quotes. Get at least three quotes for identical coverage. The gap can be hundreds of dollars a year.
- Bundle. Buying home and auto insurance from the same company often earns a multi-policy discount.
- Raise your deductible. Going from $1,000 to $2,500 can lower your premium noticeably. See our deductible guide.
- Install protective devices. Monitored alarms, smoke detectors, deadbolts and water leak sensors can qualify for discounts.
- Update the roof. A new or impact-resistant roof can lower rates, especially in hail-prone states.
- Upgrade old systems. Modern wiring, plumbing and heating reduce fire and water risk.
- Improve your credit. In most states, a better credit-based insurance score means a lower premium.
- Avoid small claims. Pay minor repairs yourself. Claims can raise your rate for years.
- Ask about loyalty and claim-free discounts. Some insurers reward long-time, claim-free customers.
- Insure the rebuild cost, not the land. Land value should never be part of your dwelling coverage.
- Review your policy every year. Remove coverage you no longer need and add discounts you now qualify for.
Where not to cut corners
MythA lower dwelling limit is a harmless way to save.
FactIf your house burns down, you pay the shortfall yourself. Some policies also shrink partial claims when you are underinsured.
MythLiability coverage is optional.
FactA single injury lawsuit can exceed $100,000. Liability is one of the cheapest coverages to increase.
MythActual cash value is basically the same as replacement cost.
FactAfter depreciation, actual cash value can pay far less, especially on roofs and older belongings.
Shop several insurers at once
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How much can you really save?
The Okafors review their policy
The Okafors pay $2,600 a year. They raise their deductible from $1,000 to $2,500, add their auto policy for a bundle discount, and report a new roof installed last spring.
A comparison quote with another insurer for the same coverage comes in lower still. They switch and keep the same coverage limits.
Illustrative example. Names and numbers are made up to show how it works.
Every home and insurer is different, so your savings may be bigger or smaller. The only way to know is to compare.
Frequently asked questions
Who has the cheapest homeowners insurance?
It depends on your state, home and history. The insurer that is cheapest for your neighbor may not be cheapest for you, so compare several.
Does bundling always save money?
Often, but not always. Compare the bundle price with separate policies from different insurers.
Will filing a claim raise my homeowners insurance?
It can. Claims are recorded in an industry database for up to seven years, and insurers may raise rates or decline to renew after several claims.
Is it worth switching insurers every year?
Not necessarily, but checking prices every year or two keeps your insurer honest. Make sure the new policy has the same coverage.
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