Tips for Getting Lower Home Insurance Premiums

Home insurance is essential for protecting your most valuable asset—your home. However, the cost of home insurance premiums can be a burden for many homeowners. Fortunately, there are many strategies you can use to lower your premiums without sacrificing the quality of your coverage. In this guide, we’ll explore proven tips to help you get lower home insurance premiums, along with practical insights into how the insurance industry works.

1. Shop Around and Compare Quotes

One of the most effective ways to reduce your home insurance premium is by shopping around. Insurance rates vary significantly between providers, even for similar coverage levels.

How to do it:

Use online comparison tools to get quotes from multiple insurers.
Check both national companies and local providers.
Read reviews and evaluate customer service ratings, not just the price.

Tip: Consider working with an independent insurance agent who can help you find the best deals across different insurers.

2. Bundle Your Policies

Many insurance companies offer discounts if you bundle your home insurance with other types of coverage, such as auto insurance.

Why it works: Bundling gives insurers more business, so they offer incentives to keep your loyalty.

Potential savings: Bundling can lower your premium by up to 25% depending on the insurer and your location.

3. Increase Your Deductible

Your deductible is the amount you pay out of pocket before your insurance kicks in. By opting for a higher deductible, you can significantly reduce your premium.

Example:

A $500 deductible might come with a higher premium.
Increasing it to $1,000 or $2,500 can save you hundreds annually.

Caution: Make sure you have enough emergency savings to cover the higher deductible if needed.

4. Improve Home Security

Insurers reward homeowners who take steps to reduce risk. Adding security features to your home can qualify you for discounts.

Common upgrades that earn discounts:

Burglar alarm systems
Deadbolt locks
Security cameras
Fire alarms and sprinkler systems
Smart home security systems

Bonus tip: Some insurers offer partnerships with security companies for discounted installations.

5. Maintain a Good Credit Score

In many states, your credit score can impact your insurance premium. A higher credit score usually results in lower premiums.

Why it matters: Insurers consider credit a measure of financial responsibility.

How to improve it:

Pay bills on time
Keep credit card balances low
Check your credit report for errors and fix them

6. Avoid Making Small Claims

Every claim you make goes on your insurance record. Multiple claims can lead to higher premiums or even non-renewal of your policy.

Better approach: If you can afford to pay for minor repairs yourself, avoid filing a claim. Reserve your policy for major incidents.

Tip: Understand your insurer's claim history threshold and how it affects your premiums.

7. Maintain Your Home

Preventative maintenance can help you avoid issues that lead to insurance claims. Insurers appreciate homeowners who care for their property.

What to do:

Regularly inspect roofs, gutters, and plumbing
Repair leaks and damaged structures promptly
Replace old wiring and update outdated HVAC systems

Insurance benefit: A well-maintained home poses less risk, which can reduce your premiums over time.

8. Ask About Discounts

Many insurers offer a variety of discounts, but they’re not always advertised. Ask your agent or insurer if you qualify for any of the following:

New home discount
Claims-free discount
Loyalty discount
Senior or retiree discount
Paperless billing or auto-pay discount
Affiliation or group discounts (e.g., alumni associations, employer partnerships)

Pro tip: Review available discounts annually when you renew your policy.

9. Insure Only What You Need

Don’t over-insure your home. Make sure your policy reflects the actual rebuild cost, not the market value.

Break it down:

Market value includes the land and location.
Rebuild cost is the cost to rebuild the structure, which is typically less.

What to review:

Remove coverage for land value
Adjust personal property limits
Update home value after renovations

10. Consider a Home Insurance Review

A periodic review with your insurance provider ensures your policy still fits your needs. Life changes, home upgrades, or new risk factors can impact your rates.

What to update:

Recent renovations
New valuables (jewelry, electronics, art)
Changes in occupancy (e.g., renting part of the home)

Benefit: Regular reviews help you avoid overpaying or being underinsured.

11. Choose Your Location Wisely

Location plays a big role in determining your insurance rates. Homes in areas prone to natural disasters or high crime typically have higher premiums.

If you’re house hunting:

Check local crime rates
Assess flood and earthquake risk
Ask neighbors about insurance costs

Long-term strategy: If relocating is an option, consider moving to a lower-risk area to save on insurance.

12. Stay Loyal (But Not Blindly)

While switching providers may offer short-term savings, long-term loyalty can come with its own rewards.

What to look for:

Longevity discounts
Waived deductibles after years without claims
Better treatment during claims processing

However: Always compare quotes every few years to make sure your loyalty isn’t costing you too much.

13. Avoid High-Risk Additions

Certain home features can increase your premiums. Be cautious when adding the following:

Swimming pools
Trampolines
Wood-burning stoves
Aggressive dog breeds (according to insurer's list)

Consider alternatives: If you want a pool, consider a safer model with a secure fence and cover.

14. Install Weather-Resistant Features

Homes in storm-prone areas can benefit from weatherproofing improvements.

Examples:

Storm shutters
Impact-resistant windows
Reinforced roofing
Flood barriers

Insurance benefit: These upgrades can reduce the chance of damage, resulting in lower premiums.

15. Opt for Annual Payments

Paying your premium annually instead of monthly can save you money. Many insurers charge administrative fees for monthly plans.

Savings tip: Set aside money monthly in a high-yield savings account and pay your premium in full when due.

Final Thoughts

Lowering your home insurance premium doesn’t mean cutting corners on protection. It’s about being a smart homeowner—maintaining your property, managing your finances, and exploring all available discounts. A little research and effort can lead to significant long-term savings.