Home Insurance Discounts

Key Takeaways

Common home insurance discounts to easily qualify for include bundling with another insurance type, installing protective devices at home and going paperless.

Home insurance discounts can be categorized into three: policy-based discounts, home-based discounts and policyholder-based discounts.

Many discounts won't apply unless you ask, so check your declarations page and contact your insurer at least once a year.

Home Insurance Discounts To Ask For

Most insurers offer a range of ways to lower your premium. This list of home insurance discounts breaks them into three categories so you can see which ones you already qualify for and where you can save to get cheap home insurance.

- Multi-Policy (Bundling) Discount: Combine your homeowners policy with auto or another insurance policy through the same insurer. Insurers like State Farm and Progressive may cut 5% to 25% off your premium when you hold two or more policies with them.
- Pay-in-Full Discount: Pay your annual premium in one lump sum instead of monthly installments. Insurers like State Farm and Allstate often reduce your rate by 5% to 10% when you skip monthly billing.
- Consistent Payments: If you maintain a strong payment history over a certain period of time, some insurers, like Allstate, offer you a discount.
- Early Renewal Discount: Renew your policy before the expiration date rather than waiting until the last minute. Some insurers, like Auto-Owners Insurance, reward early renewals with a 5% to 10% discount on your next term.
- Loyalty Discount: Qualify if you stay with the same insurer, like Universal Property, for a set number of years, usually three to five. Long-term policyholders often save 3% to 10% on annual premiums.
- Claims-Free Discount: Go a set period, usually three to five years, without filing a homeowners claim. Insurers like Universal Property reward claims-free policyholders with discounts of 5% to 20%.
- Automatic Payment Discount: Insurers like Liberty Mutual and Allstate offer savings if you set up autopay from a bank account or credit card, so your premium payments are processed on time each month.
- New Construction Discount: Buy or build a home that's less than five years old. New homes have updated wiring, plumbing and roofing, which lowers claim risk and can reduce premiums with providers like Progressive and Amica by 5% to 15%.
- Monitored Alarm Discount: Install a burglar alarm connected to a 24/7 professional monitoring service. Insurers like Travelers and State Farm offer 5% to 20% off when the monitoring company verifies your system is active.
- Smoke and Fire Alarm Discount: Place working smoke detectors and fire alarms on every floor of your home. Most carriers reduce rates by 2% to 5% once you confirm the devices are installed and functional.
- Roof Replacement Discount: Replace an aging roof with impact-resistant shingles, metal panels or tile rated Class 4 or higher. Companies like Liberty Mutual lower premiums by 5% to 25% for roofs built to resist hail and wind damage.
- Water Leak Detection Discount: Install smart water sensors or an automatic shutoff valve that detects leaks before they cause major damage. Carriers like State Farm and Chubb offer 2% to 10% off for verified leak detection systems.
- Wind Mitigation Discount: Add hurricane straps, storm shutters, reinforced garage doors or a secondary water barrier to your roof. Coastal-state insurers, like Allstate, State Farm and Progressive, especially in Florida and Texas, offer 5% to 45% off for verified wind-resistant features.
- Gated Community Discount: Live in a neighborhood with controlled entry gates and security patrols. Reduced theft and vandalism risk earns homeowners 5% to 15% off with many carriers.
- Senior or Retiree Discount: Be 55 or older and retired or working from home full-time. Insurers like Universal Property offer 5% to 15% off because retirees are home more often to spot problems early.
- Nonsmoker Discount: Confirm that no one in your household smokes. Insurers reduce premiums by 5% to 15% because nonsmoking homes have a lower fire risk.
- Military and Veteran Discount: Provide proof of active-duty, reserve or veteran military status. GEICO offer 5% to 15% off for eligible service members and their families.
- Affinity or Group Discount: Belong to a qualifying professional association, alumni group or employer partnership. Group members often save 5% to 10% through negotiated rates with participating insurers.

How to Qualify for Home Insurance Discounts

You qualify for most home insurance discounts by proving eligibility to your insurer and asking for the savings directly. Insurers may not apply every available discount without a request from the policyholder. Use these steps to make sure you’re maximizing your savings.

1
Check Your Current Policy
Pull up your declarations page to see which discounts are already active on your premium. If your insurer has an online portal, you can usually view this document under your policy details.
2
Compare Against Your Insurer's Full Discount List
Visit your carrier's website or call your agent to get a complete list of available discounts. Match it against your declarations page to identify discounts you qualify for but aren't getting.
3
Collect Your Documentation
Insurers verify discounts through receipts, certificates and official records. Have your home improvement receipts, alarm monitoring contracts, military ID or group membership proof ready before you call.
4
Request Missing Discounts From Your Agent
Tell your agent about any eligible discounts not on your policy and provide your documentation. Some discounts apply immediately, while others take effect at your next renewal or billing cycle.
5
Repeat at Every Renewal
Review your discounts once a year when your policy renews, especially after home upgrades, a claims-free year or a life event like retirement. Insurers update their discount programs regularly, so new savings may be available each term.

Home Insurance Discounts and Savings: Bottom Line

Home insurance discounts fall into three categories: policy-based, home-based and policyholder-based. You can qualify for most of them by upgrading your home, adjusting how you pay your premium or providing proof of personal eligibility like military status or good credit. Review your declarations page at every renewal and call your agent to ask about any discounts you're missing.

Discounts on Home Insurance: FAQ

Below are answers to frequently asked questions about home insurance discounts.

How do I know which discounts are on my policy?

Your declarations page lists every active discount applied to your premium. You can usually find this document in your insurer's online portal or by calling your agent.

Can I get discounts if I rent out my home?

Standard homeowners discounts apply to owner-occupied properties. If you rent out your home, you'll need a landlord policy, which has a different set of available discounts.

Will filing a claim remove my claims-free discount?

In most cases, yes. Filing a claim resets the clock on your claims-free period, which is usually three to five years before the discount applies again.

Are home insurance discounts the same in every state?

No. Discount availability varies by state regulations and insurer. Wind mitigation discounts, for example, are most common in coastal states like Florida and Texas, while other discounts like bundling are available nearly everywhere.

Home Insurance Discounts: Related Articles

About Mark Fitzpatrick

Mark Fitzpatrick, a Licensed Property and Casualty Insurance Producer, is MoneyGeek's resident Personal Finance Expert. He has analyzed the insurance market for over five years, conducting original research for insurance shoppers. His insights have been featured in CNBC, NBC News and Mashable.

Fitzpatrick holds a master’s degree in economics and international relations from Johns Hopkins University and a bachelor’s degree from Boston College. He's also a five-time Jeopardy champion!

He writes about economics and insurance, breaking down complex topics so people know what they're buying.

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Common Home Insurance Discounts To Qualify For