Home insurance is essential, but that doesn't mean you have to overpay. Here are 10 proven ways to lower your premium without sacrificing the coverage you need.
1. Review Your Home's Insured Value
Over time, your home's replacement cost may be overestimated, leading to higher premiums. Experts recommend reviewing your policy every five to seven years to ensure your coverage aligns with your home's actual value. If the estimated cost exceeds what's necessary, adjusting it could lead to savings.
2. Customize Coverage for Other Structures
Your policy includes coverage for detached structures like sheds, fences, and garages. If you don't have additional structures or they have minimal value, reducing this coverage can lower your premium. Some insurers allow you to adjust the limit, so check with your provider.
3. Ask About Discounts
Many insurers offer discounts, but they're not always advertised. Common discounts include:
- Bundling home and auto insurance
- Being a retiree or new homeowner
- Paying annually instead of monthly
- Enrolling in autopay
- Having a claims-free history
Ask your insurance provider about all available discounts—you might be surprised at what you qualify for!
4. Invest in Home Safety Features
The safest home is the one that never needs to file a claim. Insurance companies often provide discounts for safety improvements, such as:
- Hail-resistant roofing
- Fire alarms and sprinkler systems
- Burglar alarms and security cameras
- Automatic water shut-off devices
These not only lower your premium but also help prevent costly damage.
5. Be Mindful of Your Claims History
Insurance companies track how often you file claims, not just how much they pay out. Frequent claims can lead to higher premiums or even policy cancellations. If you can afford small repairs out of pocket, doing so may save you money in the long run.
6. Raise Your Deductible
Your deductible is the amount you pay before insurance kicks in. Increasing it from $500 to $1,000 (or even $2,500) can significantly lower your premium. However, make sure you choose an amount you can afford in case of an emergency.
7. Bundle Your Policies
Most people know that bundling home and auto insurance can save money, but some insurers also offer discounts for adding:
- Valuable articles policies (for jewelry, collectibles, etc.)
- Umbrella liability insurance
- Boat or motorcycle insurance
Ask your agent if bundling multiple policies can reduce your overall costs.
8. Work with an Independent Insurance Agent
Independent agents can compare rates from multiple carriers to find the best coverage at the lowest price. Some insurers only offer policies through independent agents, so working with one may unlock savings you wouldn't find on your own.
9. Improve Your Credit Score
Your credit score plays a big role in determining your home insurance premium. Insurers use your Insurance Bureau Score (IBS), which is influenced by your credit rating. To improve your score:
- Pay bills on time
- Reduce credit card balances
- Check your credit report for errors
Better credit often translates to lower insurance costs.
10. Reduce Liability Risks
Remove potential hazards from your property that could lead to liability claims:
- Repair uneven walkways
- Secure pools and trampolines
- Address aggressive pet concerns
Fewer risks mean lower premiums.
The Bottom Line
Lowering your home insurance premium doesn't mean cutting corners on coverage. By being strategic about your policy, taking advantage of discounts, and reducing risks, you can protect your home while keeping more money in your pocket.
Need help finding the right insurance broker? Use our AI match engine to connect with verified professionals.