Updated: Nov 21, 2024

Home insurance is essential for protecting your most valuable asset, but it doesn’t have to drain your budget. Learn smart ways to lower your premium while keeping strong coverage that safeguards your home and belongings.

1. Shop Around for the Best Rates

Insurance rates vary widely among providers, so comparing rates can help you find better coverage at a lower price. Many insurers offer quotes online, making it easy to compare prices without committing.

• How to Do It: Request quotes from multiple insurance companies, and compare premiums, deductibles, and coverage levels. Online comparison tools like Policygenius and Insure.com can make the process even simpler.
• Pro Tip: Look beyond the price; review each policy’s coverage details to ensure you’re comparing similar coverage.

2. Bundle Policies with One Provider

Many insurance companies offer discounts if you bundle home insurance with other policies, such as auto, life, or even boat insurance. Bundling can significantly reduce your premium and streamline billing.

• How to Do It: Ask your current provider if they offer a multi-policy discount, or search for insurers that specialize in bundles.
• Pro Tip: While bundling often saves money, make sure the bundled premium is still competitive compared to purchasing policies separately.

3. Increase Your Deductible

Raising your deductible—the amount you pay out of pocket before your insurance kicks in—can reduce your premium. If you’re willing to pay a bit more in the event of a claim, you could see a significant reduction in monthly costs.

• How to Do It: Speak with your insurer to find out how much you could save by increasing your deductible. Common deductible amounts range from $500 to $2,000.
• Pro Tip: Make sure you have enough in savings to cover the deductible if you need to make a claim. Avoid choosing a deductible that would be a financial burden.

4. Improve Your Home’s Security

Installing security systems, smoke alarms, deadbolt locks, or water leak detectors can reduce your insurance premium by making your home safer. Insurers often offer discounts on homes with security measures in place because they reduce the likelihood of claims.

• How to Do It: Add basic security upgrades like burglar alarms, fire alarms, and deadbolt locks. If you install a professionally monitored security system, notify your insurance company to see if it qualifies for a discount.
• Pro Tip: Some insurers also offer discounts for smart home devices, like smoke and carbon monoxide detectors that notify emergency contacts.

5. Review and Adjust Coverage Annually

Your insurance needs may change over time as you renovate, buy new valuables, or let go of old possessions. Reviewing your policy annually ensures you’re not overpaying for coverage you no longer need or underinsured for new risks.

• How to Do It: Each year, review your home insurance policy, and evaluate whether your coverage still fits your needs. Adjust your policy to account for any major changes, such as home improvements or increased property value.
• Pro Tip: Don’t automatically renew your policy without checking the coverage and premium. This gives you a chance to negotiate or switch to a more cost-effective option.

6. Maintain a Good Credit Score

Many insurance companies consider your credit score when calculating premiums, as a strong score suggests lower financial risk. A higher credit score can help you qualify for a lower rate, especially if your insurer uses credit-based pricing.

• How to Do It: Pay bills on time, reduce debt, and avoid opening too many new accounts. Regularly check your credit report for errors that could impact your score.
• Pro Tip: If your credit score improves, ask your insurer to reassess your premium. Even a modest score increase may result in savings.

7. Eliminate Unnecessary Coverage

Some insurance policies come with coverage for items you may not need, such as high-value jewelry, art, or other valuables. Reducing or eliminating these extras can lower your premium, provided it aligns with your actual needs.

• How to Do It: Review the additional coverage on your policy, and decide if it’s necessary. For example, you may not need coverage for expensive jewelry if you don’t own any.
• Pro Tip: Keep in mind that reducing or eliminating certain coverage may reduce your protection, so assess this option carefully.

8. Upgrade Your Home for Disaster Preparedness

Insurance companies often reward proactive measures to make your home more disaster-resistant. If you live in an area prone to natural disasters like hurricanes or earthquakes, upgrading your home’s resilience can lead to substantial discounts.

• How to Do It: Consider adding storm shutters, reinforcing your roof, or retrofitting your home to withstand earthquakes if applicable in your area.
• Pro Tip: Some states offer incentives or discounts for disaster-resistant improvements. Check with your insurer to see if these upgrades could lower your premium.

9. Ask About Discounts and Special Offers

Many insurers provide various discounts, so it’s worth asking if you qualify for any of them. Discounts can be based on factors like being a senior citizen, having a new home, or being a long-time policyholder.

• How to Do It: Call your insurer and ask if there are any discounts that apply to your profile. You may be eligible for multiple discounts that can add up to significant savings.
• Pro Tip: Keep an eye out for seasonal discounts or introductory offers for new customers, as these can provide additional savings.

10. Avoid Filing Small Claims

Filing frequent claims can increase your insurance premium, as it signals to insurers that you’re at higher risk for future claims. Choosing to pay for minor repairs yourself can prevent these hikes in your rate and help you avoid deductible costs.

• How to Do It: Reserve your insurance claims for significant or costly damages and pay out of pocket for smaller issues.
• Pro Tip: Many experts recommend only filing a claim if the cost of repair is more than twice your deductible. This strategy can help keep your premium low over the long term.

Final Thoughts on Saving Money Without Losing Coverage

Reducing your home insurance premium doesn’t mean sacrificing quality coverage. By shopping around, adjusting your deductible, and taking advantage of discounts, you can save money while still protecting your home. A few strategic changes and routine check-ins can help you find a balance that works for your budget, keeping your home protected and your finances healthy.