In this guide

You may be able to lower your home insurance premium by comparing quotes, choosing a higher deductible you can afford, asking about discounts, making your home more resistant to damage, and making sure you are not insuring more than you need to. Results vary by insurer, location and home, and cutting coverage to cut the price can backfire if you have a loss.

Key takeaways

  • Insurers price homes differently, so comparing several quotes for the same coverage is often the most effective step.
  • A higher deductible may reduce your premium, but you must be able to pay it after a loss.
  • Discounts, home upgrades, and claim-free history can matter, but eligibility and amounts vary by insurer and state.
  • Insure the cost to rebuild the structure, not the market price, which includes land.
  • Do not trade away important coverage just to lower the price.

Start by knowing what drives your price

A home insurance price is built from many factors. The National Association of Insurance Commissioners (NAIC) lists several that are specific to the home: location, claims history, the cost to rebuild the home and its contents, the home's age and construction materials, your insurance score, your deductible, and fire protection in your area. Some of these you can influence; some you cannot.

It also helps to know that insurers are facing higher rebuilding and reinsurance costs in many markets, which is covered in our article on why home insurance is going up. In that environment, small adjustments may help, but they will not always reverse a rate increase.

1. Compare quotes from several insurers

The Insurance Information Institute (Triple-I) recommends narrowing the field to about three insurers and requesting quotes, noting that prices can vary by hundreds of dollars between companies. It also cautions against deciding on price alone, since service and claims handling matter. Triple-I suggests checking complaint data through the NAIC and financial strength ratings from rating agencies.

When you compare, request the same coverage limits, the same deductible, and the same type of payout (replacement cost or actual cash value) so you are comparing like with like. A cheaper quote with a different deductible or lower limits is not really cheaper.

Tip: Save each quote as a document. Look at the "declarations page," which lists limits, deductibles, and endorsements, and compare them line by line.

2. Consider a higher deductible

Your deductible is the amount you pay out of pocket on a covered claim before the insurer pays the rest. Triple-I says most insurers recommend at least $500 and that raising it to $1,000 may reduce premiums by as much as 25%, though the savings depend on the insurer. See our guide to home insurance deductibles for how they work.

A higher deductible is only a good idea if you could comfortably pay it. Also check whether your policy has a separate wind, hail, or hurricane deductible, which may be a percentage of your home's insured value rather than a flat amount. Those can be far higher than a standard deductible.

3. Insure the home, not the land

Your coverage amount for the dwelling should reflect what it would cost to rebuild, not what you paid or what the house would sell for. Triple-I points out that land is not exposed to perils like fire or theft, so including it can mean paying for coverage you will not use. At the same time, underinsuring the structure can leave you short after a big loss. Our article on how much homeowners insurance you need explains how to think about rebuilding cost.

4. Ask about discounts

Discounts differ by company and state, so it pays to ask. Triple-I and the NAIC mention several common ones:

  • Safety and security devices. Smoke detectors, burglar alarms, and deadbolts may earn at least a 5% discount, according to Triple-I. A sprinkler system plus monitored fire and burglar alarms may earn more, but those systems cost money to install.
  • Bundling. Some insurers discount 5% to 15% for insuring home and auto together. Confirm that the bundled total is actually lower than buying separately. Our bundling pros and cons article covers this.
  • Loyalty or claim-free discounts. Some insurers reduce premiums after several years with the company.
  • Age or group discounts. Some offer them to older homeowners or members of certain employer or professional groups.

Triple-I adds that you should compare, because staying with one insurer for loyalty savings does not always beat a competitor's price.

5. Make your home harder to damage

Insurers often charge less for homes that are less likely to produce claims. Triple-I and the NAIC point to improvements such as:

  • Storm shutters, reinforced roofs, or stronger roofing materials.
  • Fire-resistant siding or roofing in wildfire-prone areas.
  • Updated heating, plumbing, and electrical systems to reduce fire and water damage risk.
  • Earthquake retrofits, where relevant.

Discount amounts are not standard, and some upgrades may not earn any discount. Ask the insurer which improvements it recognizes before spending money. The NAIC also suggests asking your state insurance department about mitigation grants or incentive programs for roof and home upgrades, which exist in some states.

Good to know: Good maintenance matters too. Older roofs, aging plumbing, and old wiring can raise the chance of a claim, and some insurers apply roof-age limits or surcharges. See our article on roof damage coverage.

6. Protect your credit and claims history

Many insurers use credit-based insurance scores in pricing in most states. Triple-I suggests paying bills on time, keeping balances low, avoiding unnecessary new credit, and checking reports for errors. In most states, insurers must tell you when your rate rose because of credit information. Some states limit or ban the use of credit in home insurance pricing, so rules vary.

Claims history also counts. Insurers may share claim data through industry databases, so a pattern of claims can affect pricing even with a new company. This is one reason to think carefully before filing a small claim, as discussed in our guide to filing a home insurance claim.

7. Review limits and extras once a year

Coverage that made sense five years ago may not fit today. Triple-I recommends reviewing your limits and personal possessions annually. If you added a room or bought expensive items, you may need more coverage. If you sold jewelry or art that is covered by a floater, you may be able to drop it. A home inventory helps you see what you own; see how to create a home inventory.

What not to cut

Some ways to reduce premiums can create bigger risks. Be cautious about:

  • Lowering dwelling coverage below rebuild cost. A partial loss may be paid at a reduced amount if you are underinsured.
  • Dropping liability coverage. A lawsuit can cost far more than the premium difference.
  • Switching to actual cash value without understanding it. This often lowers the price but can mean much lower payouts. See replacement cost vs. actual cash value.
  • Skipping needed separate coverage. Standard policies do not cover floods or earthquakes. Triple-I says flood insurance averages about $400 a year in its guidance, but costs vary a lot by risk.

A simple action plan

  1. Pull your current declarations page and note your limits, deductibles, and endorsements.
  2. Check the dwelling limit against an up-to-date estimate of rebuild cost.
  3. Ask your insurer about every discount it offers and which home upgrades it recognizes.
  4. Compare quotes from several insurers using the same coverage details.
  5. Decide on a deductible you could pay tomorrow without borrowing.
  6. Revisit annually and after major changes like renovations, new security systems, or a new roof.

If you are in a high-risk area and have a policy through a state-backed plan, Triple-I suggests asking an agent or your state insurance department whether a private insurer might cover you. Availability depends on the market and your property.

Frequently asked questions

What is the fastest way to lower a home insurance premium?

For many people it is comparing quotes for identical coverage. Next come deductible changes and discounts. Results vary, and there is no guarantee any change will reduce your price.

Will a higher deductible always lower my premium?

Usually it lowers the premium, but the amount differs by insurer and may be small. Make sure you can pay the deductible out of pocket, and check for separate wind or hail deductibles.

Does a new roof lower my insurance?

It can, especially if the roof is impact-resistant or rated for your area's hazards. Many insurers also consider roof age. Ask the insurer what it recognizes and what documentation it needs.

Should I raise my coverage limit to be safe or cut it to save money?

Neither extreme. The goal is a dwelling limit that matches the cost to rebuild. A licensed agent or your state insurance department can help you understand how limits are set.

Why did my premium go up even though I made no claims?

Rates reflect costs across a whole region, such as rebuilding costs, severe weather, and reinsurance. The NAIC lists these as drivers. See our article on why home insurance is going up.

Sources

General information only. This guide explains general concepts and is not insurance, legal or financial advice. Rules and prices vary by state and insurer. Check your policy documents and speak to a licensed insurance professional or your state insurance department about your situation.