How to lower your home insurance premium
The most effective ways to cut a homeowners premium without leaving yourself exposed are: raise your deductible, bundle home and auto, shop and compare quotes every renewal, add risk mitigation (impact-resistant roof, water shut-off, wind retrofits), and claim every discount you qualify for. The one thing not to do is cut your dwelling coverage below your home's rebuilding cost — that risks a coinsurance penalty.
Data as of June 2026.
Ways to save, and roughly how much
| Tactic | How it helps | Typical impact |
|---|---|---|
| Raise your deductible | You absorb more small losses; insurer charges less | Often 10–25% off |
| Bundle home + auto | Multi-policy discount with one insurer | Often 5–25% off |
| Shop & compare yearly | Loyalty rarely pays; rates differ a lot by insurer | Varies, often large |
| Impact-resistant roof | Lower wind/hail claim risk; many insurers discount it | Varies by state |
| Water/security devices | Leak sensors, monitored alarms, smart shut-offs | Small but stackable |
| Claims-free & new-roof discounts | Reward low risk and recent roof replacement | Small but stackable |
| Improve insurance credit | Allowed as a rating factor in most states | Moderate over time |
What not to do
- Don't underinsure the dwelling. Set Coverage A to full replacement cost; a low limit can trigger a coinsurance penalty on a partial loss.
- Don't file tiny claims. A small claim can cost you a claims-free discount and raise future premiums by more than the payout.
- Don't drop wind/hail or water coverage in exposed areas just to save premium.
- Don't assume your old quote is still competitive — re-shop at every renewal.
Frequently asked questions
How can I lower my homeowners insurance premium?
Raise your deductible, bundle home and auto, shop and compare quotes annually, add wind/hail or water mitigation, improve your roof, ask about every discount (claims-free, new roof, security, age), and keep a clean claims record. Avoid lowering dwelling coverage below replacement cost just to save premium.
Does raising my deductible save money?
Usually yes - moving from a $500 to a $1,000 or $2,500 deductible can cut the premium meaningfully because you absorb more small losses. Only do it if you can comfortably pay the higher deductible out of pocket at claim time.
Should I cut coverage to save money?
No - not dwelling coverage. Insuring below your home's replacement cost risks a coinsurance penalty and leaves you unable to fully rebuild. Save on premium through deductible, discounts and shopping, not by underinsuring the structure.
Related
General information only — not advice. Savings ranges are indicative, not guaranteed, and depend on your insurer and state. Verify discounts and coverage with licensed insurers and your state insurance department.
Last updated: 2026-06-20