Key takeaways
- Comparing quotes from several insurers every year or two is often the single biggest lever on price.
- A higher deductible lowers your premium, but only choose one you could pay from savings tomorrow.
- Bundling, protective devices, a newer roof and a claims-free history commonly earn discounts.
- Never cut dwelling coverage below the cost to rebuild just to save on the premium.
In this guide
The most effective ways to lower home insurance are to compare quotes from several insurers, raise your deductible to an amount you can afford, bundle with auto insurance, ask for every discount, and make risk-reducing upgrades like a new roof or monitored alarm. Avoid cutting dwelling coverage below your home's rebuild cost to save money.
Some of these steps take ten minutes; others involve spending money on your home. Below we rank the options by effort and explain the trade-offs so you can save without discovering a coverage gap after a loss. If you are still figuring out what a normal price looks like, start with our guide to how much homeowners insurance costs.
Why home insurance keeps getting more expensive
It helps to know what you are up against. Home insurance premiums are driven largely by how much it would cost to rebuild your house and how likely it is that you will file a claim. Construction labor and materials have become more expensive, and severe weather losses have pushed rates higher in many regions. Some policies also include an inflation guard that raises your dwelling limit each year, which raises the premium with it.
Where you live matters too. Homes in areas exposed to hurricanes, hail, wildfire or severe convective storms often see larger increases than homes in calmer regions. You cannot control those forces, but you can control how your policy is structured, which company you buy from and how risky your home looks to an underwriter.
Quick wins: savings that take little effort
Shop around and compare quotes
Insurers weigh risk factors differently, so the same home can get very different prices from different companies. Getting three to five quotes with identical coverage limits and deductibles is often the biggest single saving available. Our guide to comparing home insurance quotes explains how to line quotes up fairly.
Raise your deductible
Your deductible is what you pay before insurance kicks in. Choosing a higher deductible usually lowers your premium. The trade-off is simple: you are self-insuring small losses in exchange for a lower bill every year.
See our guide to home insurance deductibles for how percentage deductibles for wind and hail work, since they can change this math.
Ask about every discount
Insurers do not always apply discounts automatically. Call and ask specifically about each of these:
- Multi-policy (bundling home and auto)
- Protective devices: smoke detectors, deadbolts, monitored burglar or fire alarms
- Smart water leak detectors or automatic water shutoff valves
- Claims-free or loyalty discounts
- New or recently renovated home
- New roof or impact-resistant roofing
- Paying the annual premium in full or enrolling in autopay and paperless billing
- Affiliation discounts through employers, alumni groups or professional associations
- Retiree or age-based discounts, where offered
Bundle home and auto
Buying home and auto from the same company is one of the most common discounts. It is not always the cheapest overall, though, so compare the bundled price with the best separate prices. Our guide to bundling home and auto insurance walks through the math.
Bigger levers: home improvements that can cut premiums
| Upgrade | Why insurers care | Typical effort |
|---|---|---|
| Roof replacement or impact-resistant shingles | Roof damage is a leading cause of claims | High cost, but may also restore replacement-cost roof coverage |
| Updated electrical, plumbing and heating | Older systems raise fire and water-damage risk | Moderate to high |
| Monitored security and fire alarms | Faster response reduces losses | Low to moderate |
| Water leak sensors and shutoff valves | Water damage claims are common and costly | Low |
| Wind mitigation features (roof straps, shutters) | Reduce hurricane and windstorm damage | Moderate; some coastal states require discounts for them |
| Removing high-liability items | Trampolines, some pools and certain dogs raise liability risk | Varies |
The roof matters more than most homeowners realize. An older roof can mean higher premiums, a roof-only actual cash value settlement or even nonrenewal. Our guide to roof age and home insurance covers how insurers treat roofs by age and material.
Things that lower your premium over time
- Avoid small claims. Filing claims for losses just above your deductible can lead to surcharges or loss of a claims-free discount. Consider handling minor repairs yourself.
- Improve your credit. In most states insurers can use a credit-based insurance score in pricing. A few states limit or prohibit this.
- Maintain your home. Keeping gutters clear, trees trimmed and plumbing in good repair reduces the chance of a claim and of inspection problems.
- Review your coverage at every renewal. Check that your dwelling limit still matches rebuild cost, remove coverage for items you no longer own, such as a sold boat or jewelry you no longer have scheduled, and confirm that any home improvements or new safety devices are on file with your insurer.
- Stay with a clean record, then re-shop. Loyalty is not always rewarded. After three to five claims-free years, your profile may look better to other insurers than it did when you first bought the policy, so a fresh round of quotes can pay off.
What not to cut
Some savings are false economies. Avoid these:
- Lowering dwelling coverage below rebuild cost. Your dwelling limit should reflect what it would cost to rebuild, not your home's market value. Being underinsured can leave you with a large shortfall after a major loss.
- Switching from replacement cost to actual cash value on belongings without understanding that depreciation will reduce your payout.
- Dropping liability coverage to the minimum when you have significant savings or home equity to protect.
- Letting coverage lapse while switching insurers. A gap can raise future prices and violate your mortgage terms.
The bottom line
Start with the easy moves: compare quotes, raise your deductible to an amount you can truly afford and ask about every discount. Then look at upgrades like a newer roof or water shutoff system, which can lower both your premium and your risk. The goal is a lower bill with the same protection, not a cheaper policy that fails you when you need it.
Frequently asked questions
What is the fastest way to lower home insurance?
Getting quotes from several insurers is usually the fastest way, because prices for the same home and coverage can differ a lot between companies. Raising your deductible and asking your current insurer to review every discount you qualify for can also cut your premium quickly, often without any change to your home.
Does raising my deductible really save money?
Usually, yes. Moving from a low deductible such as $500 to a higher one such as $1,000 or $2,500 commonly reduces the premium, because you are taking on more of the small losses yourself. The savings vary by insurer and state. Only raise it to an amount you could comfortably pay out of savings after a loss.
Why did my home insurance go up if I did not file a claim?
Premiums can rise even without a claim because rebuilding costs, such as labor and materials, have increased, and because insurers adjust rates for weather and catastrophe losses in your area. Your policy may also have an automatic inflation adjustment that raises your dwelling limit each year. Shopping around and reviewing discounts can help offset these increases.
Will a claim raise my home insurance rates?
It can. Many insurers apply a surcharge or remove a claims-free discount after a claim, and multiple claims in a few years can lead to nonrenewal. Claims are also recorded in industry databases other insurers check. For small losses only slightly above your deductible, paying out of pocket may cost less over time than filing.
Does improving my credit lower home insurance?
In most states, insurers can use a credit-based insurance score when setting home insurance prices, and a stronger score often leads to a lower premium. A few states restrict or ban this practice. Paying bills on time and keeping credit card balances low can help your score over time, which may improve future quotes.
Official Resources & Further Reading
Use these resources to check current guidance. Requirements and availability may vary by state and provider.
This guide is for general educational purposes and is not individualized financial, legal, tax or insurance advice. Product terms, rates and availability vary by provider and location. How we make money.
