While homeowners insurance isn’t legally required, it can protect you from potentially costly losses involving your home, belongings, and personal liability. If you’re looking to lower your premium, home insurance discounts may help. You could save by purchasing multiple policies from the same insurer, installing safety or security devices, or remaining claims-free.
Not every homeowner will qualify for every discount, and available savings vary by insurer. Some home insurance discounts may be applied automatically, while others require you to ask your insurer or provide proof that you qualify. Knowing which discounts are available can help you identify opportunities to lower your home insurance costs.
What homeowners insurance discounts are available?
Many homeowners insurance discounts are available across insurers, though specific discounts can vary significantly by insurer and state. Here are some common options to discuss with your insurance agent:
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Bundling discount
Bundling your home and auto, or other qualifying policy, is one of the most common ways to lower your overall insurance costs. You can qualify for these savings, also called a multi-policy discount, simply by keeping your homeowners and another qualifying insurance policy with the same insurance company. Discounts vary by insurer and policy bundle, with some offering savings of up to 20% or more.
Claims-free discount
Keeping your claims history free often indicates a lower risk of making a claim in the future and some insurers reward that with a discount. To be eligible, you must typically remain claims-free for at least three to five years. Discounts vary between insurers, with some offering savings of around 15%.
Home security and safety system discount
Homes with security systems and safety devices may qualify for discounts, as these can reduce the risk of claims due to theft, fire, and other potential hazards. This discount may only be available for specific home security and safety features, such as:
- Burglar alarms
- Barred or reinforced windows
- Deadbolt locks on doors
- Smoke detectors
- Fire extinguishers
- Sprinkler systems
Smart-home device discount
Smart home technology can qualify homeowners for additional discounts, as certain technology can help reduce claims risk. Some potential smart-home devices that could qualify for this discount include:
- Water leak sensors and automatic shut-off valves
- Security cameras or motion sensors
- Fire alarms
- Smart thermostats
- Electrical network monitoring devices
Roof discount
If you’ve recently installed a new roof, or have one made of impact-resistant material, that could help you save as well . Because roof damage is a common claim reason, fortifying your roof against potential damage and resulting claims can often lower overall homeowners insurance costs. Qualifying for this insurance may require proof that your roof uses specific shingles designed for increased protection.
Homebuyer discount
New homeowners can often benefit from lower insurance costs with a discount. However, this discount may be available only if you purchased your home within the previous year of enrolling in your policy.
New home discount
Newly constructed homes can often qualify for lower rates, as they may be more resilient than older homes, built with modern materials, or have higher compliance with recent construction codes. While the age of a new home can differ by insurer, the home typically must be built within the last 10 years to qualify for savings.
Green home discount
Green home discounts are available for certified energy-efficient and eco-friendly homes. Some insurers may offer this for installing eco-friendly devices, such as solar panels, building with sustainable materials, or utilizing high-performance insulation. Other insurers may require a certification, such as one from the Leadership Energy and Environmental Design (LEED) organization, to qualify.
Wind mitigation discount
Homeowners in storm-prone regions can benefit from discounts for adding wind mitigation improvements, such as installing an impact-resistant roof, window shutters, or hurricane-resistant doors. However, qualifying for wind mitigation credits may require having an inspector visit your home to verify the qualifying features.
Window protection discount
Installing impact-resistant windows is another potential discount, since broken window glass is a common home insurance claim. Insurers may need proof that the installed windows meet quality standards, such as certifications and contractor verification.
Gated community discount
Living in a gated or secured community can help lower the risk of theft, resulting in discounts on your insurance premiums. Even if you don’t live in a gated community, you may qualify for a similar discount if you subscribe to a security service.
Loyalty discount
Many insurers offer discounts for remaining with the same company for a number of years. The exact percentage and number of years required to qualify can vary, but you’ll typically save more the longer you stay with the same company.
Payment discounts
You can often qualify for several different discounts merely by changing the way you pay for your home insurance:
- Automatic payments: Setting your insurance to take payments automatically could earn a discount.
- Paid-in-full: Paying your annual premium upfront might knock off a few bucks.
- Paperless billing: Opting for electronic communication for billing helps lower an insurer’s administrative costs and could result in premium savings.
- Quote in advance: Asking for a quote well before your policy ends could qualify you for a discount.
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Military and affiliation discounts
Home insurance companies sometimes offer discounts to members of specific groups or organizations or occupations, including:
- Active duty military members or veterans
- Teachers
- First responders, such as firefighters and EMTs
- Healthcare professionals
Retiree and senior homeowner discounts
Depending on your age and employment status, you could qualify for home insurance discounts. Many insurers offer savings for retirees aged 55 or older, as they tend to spend more time at home and can spot home dangers more easily, reducing the risk of break-ins and damage. Additionally, insurers may offer senior discounts, though you may only qualify at age 65 or older.
How much can a home insurance discount save you?
How much you can save with a home insurance discount varies significantly by insurer, discount, and location. Here’s what typical savings ranges look like:
Can you combine multiple home insurance discounts?
One of the benefits of home insurance discounts is that you’re generally able to stack multiple savings on top of each other. For example, if you bundle home and auto insurance while also paying your premium for the year up front, you can often take advantage of both bundling and paid-in-full discounts. However, the exact amount can vary between insurers, so check with your insurance agent to determine exactly how much you’ll be able to save.
Which homeowners insurance discounts offer the biggest savings?
Which discounts result in the biggest savings can vary depending on your insurance company and where you live, as not all discounts are offered across insurers and locations. Some significant discounts may also be available only in specific circumstances, such as a new home discount, which could reduce your home insurance costs by up to 40%.
Home improvements that could qualify you for an insurance discount
Several home improvements could help you qualify for an insurance discount by reducing the risk of a claim due to theft, fire, severe weather, or other hazards. Some of these improvements could include:
- Upgrading to an impact-resistant roof
- Installing impact-resistant windows
- Adding storm shutters
- Installing hurricane-resistant doors
- Installing security systems, such as burglar alarms
- Adding security cameras and motion detectors
- Installing smoke, fire, and carbon monoxide detectors
- Adding smart-home devices, such as water leak sensors and thermostats
Home insurance discounts at a glance
Below is the essential information you should know about home insurance discounts:
- Eligibility: You may qualify for homeowners insurance discounts based on factors such as your claims history, home age, military or professional affiliation, and eligible safety features.
- Enrollment: Some discounts may require you to opt in, such as those for automatic payments or paperless billing.
- Home improvements: Security devices, impact-resistant roofing, storm protection, and other qualifying improvements may help lower your premium.
- Policy relationship: Bundling multiple policies or remaining with the same insurer for several years may qualify you for additional savings.
- Potential savings: Discounts vary by insurer, location, and eligibility, with some individual home insurance discounts potentially ranging from 5% to 40%.
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How to find every homeowners insurance discount you qualify for
To identify homeowners insurance discounts you may already qualify for or could become eligible for, follow these steps:
- Take stock of your home’s safety features and recent renovations or upgrades.
- Review your claims history to determine how long you’ve been claims-free.
- Consider whether you have other policies you could bundle with your homeowners insurance.
- Review payment options that may offer discounts, such as paperless billing, automatic payments, or paying your annual premium in full.
- Ask your insurance agent which discounts you qualify for and whether you need to provide documentation or opt in.
- Compare quotes and available discounts from multiple insurers to see whether another company offers similar coverage at a lower overall cost.
Frequently asked questions
What is the most common home insurance discount?
The most common home insurance discount is a bundled or multi-policy discount, where you purchase more than one policy with the same insurer.
Do smart-home devices lower home insurance premiums?
Yes, many insurance companies offer discounts for installing smart-home devices that can reduce claim risk, such as security cameras, smoke alarms, and water leak sensors.
Can I combine home insurance discounts?
Yes, you can often stack home insurance discounts for additional savings. However, insurers may limit how discounts can be combined or cap your total savings.
Does homeowners insurance get cheaper if you don’t file claims?
Yes, some insurers offer claims-free discounts if you go a certain number of years without filing a homeowners insurance claim.