Inflation seems to be affecting the cost of everything, and homeowners’ insurance premiums are no exception. U.S. home insurance rates rose a cumulative 45.6% from 2021 to 2025, and they’re expected to rise another 4% to an average of $3,057 by the end of 2026. Homeowners are exploring every opportunity to reduce the cost of insuring their homes, but the most effective strategy is also the easiest — utilizing homeowners’ insurance discounts. Learn why homeowners’ insurance premiums keep rising, why you’re missing out on discounts, and the 10 most common ways to save money on insuring your home.
Why Your Insurance Premium Keeps Going Up
According to a Pew Research Center survey, about 71% of homeowners say the cost of their homeowners’ insurance has increased over the past few years, with 42% saying costs have gone up “a lot.”
In the eight years that we’ve owned our Nashville home, our homeowners’ insurance rates have more than doubled. And insurance rates on my rentals have increased from around $600 to more than $2,400 over the last decade.
While our property values have increased and rents have gone up, the sting of paying higher insurance premiums is impacting our monthly budget.
With higher costs on everything from lumber to labor, the bad news is that rates aren’t going down anytime soon. But there are still ways to reduce the cost of insuring one of your most valuable assets. By taking advantage of homeowners’ insurance discounts, you can counter the cost of insuring your home.
Why Most Homeowners Are Missing Out on Discounts
Insurance discounts are easily overlooked, yet they’re one of the simplest ways to reduce your premiums. While some insurance agents are good at pointing out the available discounts, if you’re buying your insurance online, direct from the insurer, or with a lazy agent, you may be leaving money on the table.
When searching for discounts, it’s important to understand that opportunities to save vary by state, insurer, and your individual circumstances. With so many variables to confuse you, it’s no wonder that so many homeowners never bother asking.
Remember that most insurance companies won’t automatically apply every discount that you’re eligible for. So, you need to proactively ask for discounts and push your agent to dig deeper into your policy to seek out ways to save on your premiums.
10 Most Common Homeowners Insurance Discounts
The discounts you may be eligible for can vary based on location, type of home, insurer, and other factors. While this list covers the ten most common discounts on homeowners’ insurance, there may be others you can qualify for.
1. Bundle Your Policies
Bundling home and auto insurance with the same company is the most common type of insurance savings strategy. It is the biggest and most universally available discount, with typical savings of around 25%. But you can save even more when shopping around. For example, American Family advertises savings of up to 40% when bundling home and auto together.
Remember to shop and price out your policies individually. While I was able to get a discount from the insurer that covers my home, it was actually cheaper for me to buy separate home and auto policies from different companies.
2. Install a Home Security System
Whether you’re at home or away, your home is constantly at risk for situations covered by your homeowners’ insurance. For this reason, insurers offer a discount if you have a monitored security systems that alert police or fire departments.
Companies like ADT and SimpliSafe offer professional monitoring services that can provide rapid emergency response and round-the-clock monitoring. To qualify for this discount, you may need to provide your insurer with documentation of a monitored system periodically (such as a current monitoring agreement or the latest monthly bill).
3. Add Smoke Detectors and Fire Safety Features
Installing and maintaining working smoke alarms on every level is one of the simplest ways to qualify for a discount. If you’ve bought a home recently, your lender may have required that you install smoke alarms anyway. So, you’re already sitting on a discount that you haven’t claimed yet. Monitored fire alarms may qualify for higher credits.
Other safety features, like deadbolts and reinforced doors, can reduce the likelihood of your home being burglarized and provide additional discounts.
4. Raise Your Deductible
A lower deductible reduces the amount you’ll pay out of pocket when there’s a claim. But if you’re not filing claims regularly, you’re paying higher premiums than you need to.
The Insurance Information Institute estimates that raising your deductible from $500 to $1,000 can slash your premiums by up to 25%.
We raised our deductibles to $2,500 to get the biggest discount we could qualify for. Then we put that money aside in an emergency fund so it’s ready if we need to file a claim.
5. Go Claim-Free
The longer you go without filing a claim, the more you’ll save on your premiums. For example, Mercury Insurance customers who have stayed claim-free for at least three years can receive discounts of up to 16.4%.
Avoid filing small claims you could pay out of pocket, as even one claim can reset your discount eligibility. Having a larger deductible not only saves money on your premium, but it also reinforces the strategy of not filing claims for minor expenses.
6. Upgrade Your Roof
A new roof can lower your insurance rates because roofs are where the majority of losses due to snow, wind, hail, and rain occur. A stronger roof reduces your likelihood of damage during bad weather.
Premium roofing materials also save money on insurance. State Farm, for example, offers discounts for certain impact-resistant roofing products like hail-resistant or Class 4 shingles. Since roofs can last for many years, don’t prematurely replace your roof to save a little money. Check with your agent to find out how much you can save, then do the math to determine if replacing your roof is worth it.
7. Install Smart Home Water Leak Sensors
Installing a leak sensor is an underrated discount that can deliver a massive return on investment (ROI) given its low cost. Smart leak sensors and auto-shutoff valves, such as those made by Flo by Moen or Phyn, reduce non-weather water losses, and some carriers reward homeowners for installing them.
We have water leak sensors through our SimplySafe alarm system, but we don’t have auto-shutoff valves. This is a discount I need to look into to determine if it’s worth it for my home.
8. Improve Your Credit Score
Having good credit impacts more than the cost of borrowing money. Your credit score may also affect your home insurance premium in most states. A 2025 report by the Consumer Federation of America found that the typical homeowner was charged nearly $2,000 more per year just for having a low credit score.
Taking steps to improve your credit score can yield significant savings on insurance rates, borrowing costs, and other expenses. With a higher credit score, you may qualify for policies from other insurers that shut you out previously due to a low score.
Track your credit score through free tools from most banks. As your credit improves, consider shopping your policy again.
9. Pay in Full or Set Up Autopay
Paying your premiums monthly allows you to spread out the cost of insurance into smaller chunks. However, most insurance companies charge extra fees for this convenience, which drives up the total cost of your homeowners’ insurance.
Some insurance companies offer discounts when you pay your premium in full or when you set up automatic payments. While this discount tends to be small, it’s a low-hanging fruit that’s easy to grab.
Instead of paying for your insurance monthly, I recommend that clients set aside money in a high-yield savings account each month. Then, when the annual premium is due, you have the cash available to pay in full and lock in all available discounts.
10. Ask About Affinity, Senior, or Loyalty Discounts
Insurance companies often provide affinity discounts that reward homeowners for their profession, degree, or membership in a qualifying organization. Discounts may also be available to active military members and veterans, seniors over a certain age, or retirees.
When comparing insurance rates, don’t forget to factor in the loyalty discount you may qualify for. Switching policies may not be worth it if you lose the loyalty discount and perks that come with staying with the same policy for multiple years.
Shop Around and Compare Rates
Even if you’ve had a policy with one company for a long time and are happy with your coverage, you should routinely shop around to see if you can get a cheaper policy elsewhere. It’s a good idea to compare quotes from at least three providers before renewing each year. An independent agent or an online marketplace makes it easy to shop around without having to repeat the same information.
Keep in mind that a carrier with fewer discounts may still offer a lower base rate. Make discounts part of your shopping checklist, not a reason to stay put.
I recently shopped my home and auto policies. While I could save money on my homeowner’s insurance premium, the deductible would have increased from $2,500 to 1% to 2% of my property value. For that reason, I chose to keep my existing insurance, even though I could have saved a few hundred dollars a year.
The Bottom Line
Most of us buy homeowners’ insurance when we close on a house, then forget about it. But your home, your credit, and the insurance market itself have all changed since then. Updating your policy coverages and exploring discounts ensures you’re covered appropriately and aren’t paying more than you need to. When you stack homeowners’ insurance discounts, you can substantially reduce the cost of insuring your home. And the beauty of it all is that you only need to do it once to lock in savings that can last for a year or longer.
When you receive your annual insurance renewal, make these calls — ask your current insurer about which discounts you qualify for, at least two competitors to compare quotes, and an independent agent to uncover policies you may not know about. You can also compare quotes online to speed up the process and avoid long calls.
The information provided on this website is for general informational and educational purposes only and should not be considered legal, financial, or insurance advice. While we strive to keep content accurate and up to date, insurance laws, policies, and regulations can vary by state and may change over time.
Nothing on this site constitutes professional advice or a recommendation of any specific insurance product, provider, or strategy. You should consult with a licensed insurance agent, financial advisor, or legal professional regarding your individual situation before making any decisions.
Sources
- PR Newswire, Insurify Projects Average Home Insurance Price Will Climb 4% in 2026, After Jumping 12% in 2025. Published March 18, 2026.
- Pew Research Center, 71% of U.S. homeowners say their home insurance costs have gone up. Published May 6, 2026.
- American Family Insurance, Homeowners insurance discounts. Accessed June 25, 2026.
- Smart Financial, 17 Best Ways To Save on Home Insurance in 2025. Published February 18, 2025.
- Insurance Information Institute, 12 Ways to Lower Your Homeowners Insurance Costs. Accessed June 25, 2026.
- Mercury Insurance, How to Get Homeowners Insurance Discounts. Published November 24, 2025.
- State Farm, Homeowners insurance discounts from State Farm. Accessed June 25, 2026.
- Consumer Federation of America, Penalized: The Hidden Cost of Credit Score in Homeowners Insurance Premiums. Published August 12, 2025.
