How to Save Money on Your Homeowners Insurance

Most lenders require you to have homeowners’ insurance. But just because it is required does not mean that all policies cost the same amount. There are several ways you can save money on your homeowners insurance. Wouldn’t you rather put the money you’ve saved into your home? Here are some tips to save money on your homeowners insurance.

Tip #1: Raise Your Deductible

Deductibles are the amount you may have to pay for a specific service needed before your insurance policy begins to pay. As of 2022, most insurance plans recommend at least a $500 deductible. Each $500 you raise your deductible will most likely increase your savings. Most deductibles start at $250; so, if you raise your deductible from that to $1,000, you may be able to save close to 25%. But remember, your deductible is the amount that comes out of your pocket when a loss occurs before your insurance company starts to pay, so make sure you can afford your deductible in case you ever have to report a loss.

Tip #2: Only Buy the Coverage You Need

If you don’t live in a flood-prone area, you may not need costly flood insurance. Similarly, if your house is close to a fire station, you may be charged less on your policy. Also, you may have valuables, appliances, electronics, etc. that lose their value over time.

Saving money on your homeowners insurance policy

That’s why it’s important to compare the limits in your policy to the value of your possessions at least once a year. You want your policy to cover any major purchases or additions to your home, but you don’t want to spend money for coverage you don’t need.

Tip #3: Multi-Policy Insurance

Most insurance companies that sell insurance products other than homeowners’ insurance may give consumers discounts for buying more than one product from them. For example, if your auto insurance company also sells homeowners insurance, you might get a discount of up to 15% off your premium for buying both products.

Tip #4: Always Seek Out Homeowners’ Insurance Discounts

Seniors often enjoy discounts on their homeowner’s insurance if they are over 55 and retired. Strong home security in the form of security systems, alarms, gated communities, double locks on both doors, etc. often afford you lower rates. A new home’s electrical, heating, and plumbing systems and overall structure are likely to be in better shape than those of an older home, therefore new homes are usually charged lower rates than older homes in the same price range.

Ways to save on your homeowners insurance policies

Non-smokers usually get reduced rates on their homeowners insurance policy. If you were a smoker when you bought your house, but have subsequently quit, many insurers may lower your rates. Smoking accounts for over 20,000 residential fires in the U.S. a year, so insurers often charge lower premiums to smoke-free households.

Tip #5: Shop Around for Better Homeowners Insurance Policies

If you’ve just purchased or are about to purchase a new home, get several quotes before choosing the company you want to give your business to. Rates can vary by hundreds of dollars from company to company. This also applies to longer term homeowners. Your current company could be overcharging you, and it makes sense to compare rates and think about switching companies if you can save a significant amount of money. But don’t consider price alone. The insurer you select should offer both a fair price and excellent service. Quality service may cost a bit more, but you buy insurance in case you need to make a claim, so it’s important to get a company with a good reputation.


  1. 12 Ways to Lower Your Homeowners Insurance Cost, Insurance Information Institute.
  2. How to Save Money on Your Homeowners Insurance, Insurance Information Institute.