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How to lower your home insurance premium (without underinsuring)

By Editorial team · 2026-06-06

In short: The biggest savings come from raising your deductible, bundling home and auto, and shopping quotes every renewal. Mitigation (impact-resistant roof, water shut-off), claims-free and new-roof discounts, and better insurance credit add more. Never cut dwelling coverage below replacement cost to save premium - that risks a coinsurance penalty.

Homeowners premiums have climbed everywhere, but you have more control than you think. Here are seven legitimate ways to cut your premium without leaving yourself underinsured. (The detailed version lives in our how to lower your premium guide.)

The high-impact moves

TacticHow it helpsTypical impact
Raise your deductibleYou absorb small losses; insurer charges less10–25% off
Bundle home + autoMulti-policy discount5–25% off
Shop & compare yearlyRates vary a lot between insurersOften large
Impact-resistant roofLower wind/hail risk; often discountedVaries by state
Water/security devicesLeak sensors, monitored alarms, smart shut-offsSmall, stackable
Claims-free / new-roof discountsReward low riskSmall, stackable
Improve insurance creditA rating factor in most statesModerate over time

1–3: deductible, bundling, shopping

These three do the heavy lifting. Raising your deductible is the single fastest lever — just make sure you can pay it at claim time. Bundling home and auto with one insurer typically earns a discount. And re-shopping every renewal matters because loyalty rarely pays: the same home can get very different quotes from different insurers.

4–7: mitigation, discounts, credit

Strengthening your home reduces claim risk and often earns discounts — an impact-resistant roof, a monitored alarm, and automatic water shut-off devices. Ask your insurer to list every discount (claims-free, new roof, age, profession, paperless). In most states, your insurance credit score is a rating factor, so keeping credit healthy helps over time.

What not to do

Don’t underinsure the dwelling, don’t file tiny claims (a small claim can cost you a claims-free discount worth more than the payout), and don’t drop wind/hail or water coverage in exposed areas. See what drives your premium for the full picture, and check your state’s average for context.

General information, not advice. Discount availability and savings vary by insurer and state. Verify with licensed insurers and your state insurance department.

Frequently asked questions

What's the fastest way to lower my home insurance?

Raise your deductible if you can afford the higher out-of-pocket at claim time, and re-shop quotes from several insurers - loyalty rarely pays. Bundling home and auto often adds a meaningful discount too.

Does a higher deductible really save money?

Yes - moving from a $500 to a $1,000 or $2,500 deductible can cut the premium 10-25% because you absorb more small losses. Only do it if you can comfortably pay that deductible.

Can I lower my premium by reducing coverage?

Not the dwelling coverage. Insuring below your home's replacement cost risks a coinsurance penalty and could leave you unable to rebuild. Save through deductible, discounts and shopping instead.

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Last updated: 2026-06-06