9 Ways to Lower Your Home Insurance Cost - NerdWallet (2024)

Homeowners insurance rarely gets much attention, but it could be quietly costing you more money than it should. The good news is insurers provide a variety of discounts and incentives that can help you lower your homeowners insurance premium.

Here are nine ways to save.

A quick way to reduce your premium is to raise your homeowners insurance deductible, the amount you pay if you have to make a claim. If you have a $1,000 deductible, you could save an average of 11% a year by increasing it to $2,500, according to NerdWallet's rate analysis.

Increasing your deductible puts money in your wallet every month that otherwise would have gone to your insurer. Do the math to see whether the discount is worth it to you, and be sure you have enough saved to cover a bigger out-of-pocket expense if you need to make a claim.

Even the basics can save you money when it comes to home security.

Having a smoke detector, burglar alarm or deadbolt locks on your home can earn you a 5% discount, says Mark Friedlander, spokesperson for the Insurance Information Institute. Adding a comprehensive sprinkler system along with an actively monitored fire and burglar alarm could save you as much as 15% to 20%, he says.

It may be tempting to file a claim with your insurer even when something relatively minor happens. However, you may be better off in the long run if you pay out of pocket for these smaller expenses — some insurers offer discounts if you remain claim-free for a certain period of time, usually a few years.

How much can filing a claim affect your rates? Submitting a claim for wind damage raises your annual cost of insurance by about 9%, on average, according to a recent NerdWallet analysis. If the damage is relatively minor, you could end up paying more in rate increases than the insurer pays for your claim.

Unless you check, you may never know what other savings you might be eligible for. Some insurers offer additional homeowners insurance discounts if you:

If you've improved your home, you may have made yourself eligible for homeowners insurance discounts without even realizing it. Adding features such as storm shutters and impact-resistant roofing — which make your house tougher to damage — could result in insurance savings. You might also earn a discount by upgrading outdated plumbing and electrical systems.

“You can often request a new inspection of your home to evaluate these improvements to maximize your potential discounts,” says Jessica Hanna, spokesperson for the American Property Casualty Insurance Association.

Bundling auto and home insurance with the same company typically saves you 5% to 15% on your homeowners premium, according to data from the Insurance Information Institute. Although it could vary depending on your company, many insurers provide discounts if you buy more than one type of policy from them. See the best home and auto insurance bundles.

It may surprise you to learn that your credit score can have a substantial impact on your home insurance premium. In most states, companies can use a credit-based insurance score to determine your rates. If your insurer thinks your credit score is too low — such as a FICO score under 630 — you may pay higher rates.

Someone with poor credit would pay 94% more for homeowners insurance than someone with good credit, on average, according to NerdWallet’s rate analysis.

If you find that your credit score is low, read your credit report closely to identify any errors. You can elevate your score by taking steps like making loan payments on time and reducing credit card balances. Learn more about how to build credit.

Though it may be fun, having something your insurer deems an “attractive nuisance” — think trampolines, swimming pools or playground equipment — can add to your homeowners insurance premium.

An attractive nuisance is a feature on your property that children could be tempted to play on. If they get injured while doing so, you could be held legally responsible. Because insurers consider this a liability risk, getting rid of those items could save you money on homeowners insurance.

Rates for identical homeowners insurance coverage can vary widely from one company to the next. Some homeowners could save $1,000 or more a year by finding the cheapest rate, NerdWallet research shows.

Many companies have tools on their websites that allow you to plug in some basic information and get quick home insurance quotes. Comparing different companies’ rates will let you see whether you might be able to save by switching insurers. You can also ask an independent insurance agent or broker to shop around on your behalf.

The one thing we don’t recommend is cutting coverage you might need. If you do that and disaster strikes, you’ll be left footing the bill when it’s time to rebuild your home and replace lost belongings. Learn more about what to do if you can't afford your homeowners insurance.

If possible, you should also avoid dropping other necessary policies, such as a flood insurance policy from the National Flood Insurance Program. Instead, try getting quotes from private flood insurance companies. You may find a cheaper option.