How To Get Homeowners Insurance Discounts

With 15 years of immersion in the world of personal finance, Ashley Kilroy simplifies financial concepts for individuals striving toward financial security. Her expertise has been showcased in reputable publications including Rolling Stone, SmartAsse.

With 15 years of immersion in the world of personal finance, Ashley Kilroy simplifies financial concepts for individuals striving toward financial security. Her expertise has been showcased in reputable publications including Rolling Stone, SmartAsse.

With 15 years of immersion in the world of personal finance, Ashley Kilroy simplifies financial concepts for individuals striving toward financial security. Her expertise has been showcased in reputable publications including Rolling Stone, SmartAsse.

With 15 years of immersion in the world of personal finance, Ashley Kilroy simplifies financial concepts for individuals striving toward financial security. Her expertise has been showcased in reputable publications including Rolling Stone, SmartAsse.

Michelle is a lead editor at Forbes Advisor. She has been a journalist for over 35 years, writing about insurance for consumers for the last decade. Prior to covering insurance, Michelle was a lifestyle reporter at the New York Daily News, a magazine.

Michelle is a lead editor at Forbes Advisor. She has been a journalist for over 35 years, writing about insurance for consumers for the last decade. Prior to covering insurance, Michelle was a lifestyle reporter at the New York Daily News, a magazine.

Michelle is a lead editor at Forbes Advisor. She has been a journalist for over 35 years, writing about insurance for consumers for the last decade. Prior to covering insurance, Michelle was a lifestyle reporter at the New York Daily News, a magazine.

Michelle is a lead editor at Forbes Advisor. She has been a journalist for over 35 years, writing about insurance for consumers for the last decade. Prior to covering insurance, Michelle was a lifestyle reporter at the New York Daily News, a magazine.

| Lead Editor, Insurance

Updated: Sep 28, 2023, 5:03am

Editorial Note: We earn a commission from partner links on Forbes Advisor. Commissions do not affect our editors' opinions or evaluations.

Getty

Homeownership expenses like mortgage payments, property taxes, utility bills and home insurance can chew up a significant chunk of your budget. And that’s before you factor in lawn care, maintenance or your multiple streaming services. (Don’t worry, we’re not here to tell you to get rid of Netflix.)

If you’re looking to save some money on home-related expenses, a homeowners insurance policy is one place to start. The average cost of homeowners insurance for $300,000 worth of dwelling coverage is $1,854 a year, according to a Forbes Advisor analysis.

There are multiple ways to find avenues to cheaper homeowners insurance. One avenue to savings is home insurance discounts.

How Do Home Insurance Discounts Work?

Homeowners insurance discounts can reduce the cost you pay for coverage. You may get a discount when you first buy a homeowners policy or you may get them added on later when you become eligible for those discounts.

For instance, you may get a discount right off the bat if you have the best home insurance and car insurance from the same company. Or that discount could be added to your policy later if you don’t initially bundle policies but later have both with the same company.

It’s wise to check with your homeowners insurance company to make sure you’re maximizing your discounts. For example, your insurer may not realize that you have a new security system that could result in a home insurance discount.

Something else to know is that insurance companies typically cap discounts. That means you might not benefit from every discount for which you’re eligible. An insurer may instead say that you can get up to 20% or 25%, total. Discounts and caps vary by company.

How Can I Get Home Insurance Discounts?

One of the easiest ways to get a home insurance discount is to simply ask your insurance agent to do a discount review. Your home insurance company might not be aware of recent changes that could qualify you for savings. For example, if you recently took steps to safeguard your home, such as installing fire alarms or a security system, you might qualify for a safety discount.

Another good way to find new home insurance discounts is to compare quotes from other home insurance companies. Insurance companies differ in their discounts and rate structures. Comparison shopping is a great way to find cheap home insurance (and also cheaper car insurance).

Looking for Homeowners Insurance?

Compare rates from participating carriers in your area via EverQuote's website

Discounts related to your home and area

Your house itself might have features that can save you money, such as:

• New or renovated home discount. Newly built or renovated homes are often eligible for discounts because upgraded systems like wiring and plumbing are less likely to fail and result in an insurance claim.
• Disaster preparedness discount. If you live in an area that’s prone to severe weather, your insurer may give a discount if you take steps to prevent damage. For example, storm shutters, reinforcing a door and shatterproof glass can reduce damage from high winds.
• Safety and security discounts. This typically applies to devices, such as smoke detectors, fire extinguishers, fire alarms, burglar alarms, sprinklers, water shut-off devices and deadbolts on exterior doors.
• Proximity to a fire hydrant or fire department. If you live close to fire-damage control resources, your insurer may offer a discount.
• Roof age discount. Roof repair costs give insurers big headaches. Some, like USAA, offer discounts based on the age of your roof.

Homeowner profile discounts

Other home insurance discounts are based on your homeowner profile. Here are some examples:

• Military discounts. If you are a current military member, a veteran or the spouse or child of a military member, you may be eligible for a discount. Be sure to explore the best homeowners insurance for veterans to maximize your savings and benefits.
• Employment, organization and association discounts. Your insurer may offer a discount for certain occupations, such as educators. You might also qualify if you are a member of a union, organization or professional association.
• Seniors or retirees. Some home insurance companies offer a price break if you’re retired or a senior working part-time. Typically to qualify, the house must be your primary residence, you must be over 55 and work outside of your house less than 24 hours a week.

Policy-related discounts

There are also policy-related price breaks you may qualify for, such as:

• Advance quote discount. Some insurers, such as Progressive subsidiary American Strategic Insurance, will give a discount if you get your price quote in advance, such as four days or more.
• Claim-free discount. An insurance company may offer a discount if you make no claims for a certain period of time.
• Insurance payment discounts. You can typically get a small discount for paying the bill in full or going paperless.
• Loyalty discount. Some insurers reward customers who have stuck with them for several years.
• Multi-home discount. If you insure more than one home through the same insurance company, you can typically get a discount.
• Multi-policy discount. Also known as “bundling,” buying more than one type of insurance from the same company is typically one of the best discounts you can get. Bundling auto and home insurance is a common multi-policy discount, but you can also bundle home insurance with life insurance, RV insurance, motorcycle insurance and other types of insurance.
• Umbrella package discount. There may be a special discount if you also buy umbrella insurance.

Other Ways to Save on Home Insurance

In addition to home insurance discounts, try these strategies for lowering costs.

Increase your home insurance deductible

A deductible is the amount of money deducted from your claim pay out by your insurance company.

Here’s an example. Let’s say you have a $1,000 deductible and your house gets damaged in a fire. The home suffers $20,000 worth of damage. The insurer provides a $19,000 check to pay for the damage and you either have to pick up the remaining $1,000 or find a way to only fork over $19,000 for the repairs.

The higher the deductible, the less you’ll pay in premiums. Just be sure you can afford to pay a high deductible amount if you need to file a home insurance claim.

Maintain good credit

Home insurance companies often use a person’s credit when they set rates.

About 85% of home insurance companies will look at your credit-based insurance score as part of setting rates, according to FICO. You can improve your insurance score the same way you would improve your regular credit score.

Shop around

Homeowners insurance companies are competitive and you should use that competition to your advantage. That includes shopping around to compare homeowners insurance quotes from multiple home insurers annually or every couple of years.

Insurance companies set rates and discounts at differing levels. One may be more forgiving if you have multiple claims on your insurance record while another insurer may charge much higher rates.