What can I do to lower my homeowners insurance premium?


Editorial team Published on

To lower your homeowners insurance premium, you can adjust your policy structure, upgrade your property, and shop around for better rates:

Adjust Your Policy and Deductible

  • Raise your deductible: Increasing your deductible from $500 to $1,000 (or higher) can lower your premium by up to 25%. Make sure you have enough in an emergency fund to cover the higher out-of-pocket cost if you file a claim.
  • Bundle your policies: Buy your homeowners and auto insurance from the same company to save anywhere from 5% to 30%.
  • Shop around and compare rates: Get quotes from multiple insurance companies or work with an independent local agent every few years to find a better rate.
  • Avoid filing small claims: Refrain from filing claims for minor damage that is close to or below your deductible, as frequent claims or even asking about them can raise your rates.
  • Pay annually: Pay your premium all at once in a single annual payment rather than smaller monthly installments to skip installment fees.

Upgrade and Fortify Your Home

  • Improve your roof: Replace an aging roof or install impact-resistant/damage-resistant roofing materials to avoid a 10% to 20% roof surcharge or earn up to a 35% discount.
  • Add security and safety features: Install smoke detectors, burglar alarms, deadbolt locks, fire sprinklers, or a 24/7 monitored security/smart home system.
  • Install leak detectors: Add automatic water shut-off or leak detection devices to prevent major water damage claims.
  • Retrofit for severe weather: Add storm shutters, reinforce roof-to-wall ties, or make your home disaster-resistant if you live in a high-risk area.

Improve Your Financial Profile

  • Improve your credit score: Insurers in many states use credit-based insurance scores to set rates; maintaining a strong credit score can significantly lower your costs.
  • Ask about hidden discounts: Proactively ask your insurer about group affiliations, employer/STEM discounts, senior or retiree discounts (often starting at age 55), or claim-free discounts.