How to Save on Homeowners Insurance

Most homeowners insurance providers offer discounts, but you won't always get them automatically. Some discounts apply at the time of quoting, while others require you to ask your agent or submit proof of eligibility. Discount availability varies by provider and state, so check with your insurer to confirm what you qualify for.

Common home insurance discounts you can qualify for include:

Your deductible is the amount you pay out of pocket before your insurer covers the rest of a claim. Raising your deductible lowers your monthly premium because you're taking on more financial responsibility per claim, which reduces the insurer's risk. 

The average deductible for home insurance is usually $1,000. For a policy with $250,000 in dwelling coverage, increasing your deductible from $1,000 to $2,000 saves $336 per year, dropping your annual premium from $3,417 to $3,081.

The average cost of home insurance changes by deductible, as shown in the table:

Your homeowners insurance premium rises in direct proportion to your coverage limits. Higher limits mean the insurer pays more if you file a claim, so the premium reflects that added risk. With a $1,000 deductible, a $250,000 dwelling coverage policy costs $3,417 per year, while jumping to $500,000 in dwelling coverage nearly doubles the annual premium to $5,787. 

Choose limits that match your home's actual replacement cost to avoid overpaying and keep home insurance affordable.

No two homeowners insurance companies price a policy the same way. Each insurer weighs factors like your credit score, claims history, home age and proximity to a fire station differently, which is why quotes for the same property can vary by thousands of dollars. 

The table below shows the best home insurance providers and their rates for $250,000 in dwelling coverage with a $1,000 deductible: AIG charges $1,089 per year, while Progressive charges $5,505 for the same coverage level.

Your credit score directly affects your homeowners insurance premium in most states. Insurers use credit-based insurance scores to predict the likelihood of a claim, and policyholders with lower scores pay more as a result. Not all states allow this practice: California, Massachusetts and Maryland prohibit insurers from using credit scores in pricing. 

For a $250,000 dwelling coverage policy with a $1,000 deductible, a homeowner with poor credit pays $6,993 per year, while someone with excellent credit pays $2,124, a difference of $4,869. If you have poor credit, you may need to opt for a high-risk home insurance company, as some providers may refuse to offer coverage.

Every homeowners insurance claim you file stays on your record for five years and pushes your premium higher. Insurers reward claim-free policyholders with lower rates, so filing a small claim can cost more in premium increases than the payout is worth. 

For example, if a $1,500 repair exceeds your $1,000 deductible by only $500, the resulting rate increase could far exceed that $500 benefit. On a $250,000 dwelling coverage policy with a $1,000 deductible, one claim adds $544 per year and two claims add $1,001 annually compared to a claim-free record.

Homeowners insurance policies don't adjust automatically when your circumstances change. Review your coverage limits once a year to make sure your dwelling coverage matches current rebuilding costs and your personal property limit covers what you own. Annual reviews also help you catch unnecessary add-ons or identify gaps, like a new home office or expensive jewelry, that may need extra coverage.

Lowering your homeowners insurance premium starts with understanding what you're paying for and where the biggest savings are. Credit score, claims history and coverage limits have the largest impact on your rate, and comparing providers can save thousands per year on the same policy. 

Apply for every discount you qualify for, raise your deductible if you can absorb the out-of-pocket cost and avoid filing small claims that could increase your premium at renewal. An annual policy review ties it all together by catching overpayments and coverage gaps before they cost you.

We've answered common questions about lowering your homeowners insurance premium.

Homeowners insurance quotes for the same property can vary by thousands of dollars, making it hard to know whether a rate is competitive. Premium data was collected through Quadrant Information Services from major national and regional insurers across all 50 states, more providers than most homeowners compare on their own.

The baseline profile is a homeowner aged 41 to 60 with a credit score of 769 to 792 and no recent claims, which is a low-risk profile most insurers use as a pricing benchmark. The home is a wood-frame house built in 2000 with a composite shingle roof and standard safety features including smoke detectors and deadbolts.

We used standard coverage of $250,000 dwelling, $125,000 personal property, $200,000 personal liability and a $1,000 deductible. Your actual premium shifts with your home's age, construction, claims history and coverage limits, but this baseline reflects what standard pricing looks like across the market.