21 Things To Do About Homeowners Insurance Rate Increases in 2025

In 2024, Homeowners insurance rates went up 27%, on average, even more in certain states that were affected by severe storms and fires. In 2025, however, home insurance rate increases are expected to continue to increase, but less significantly and at a slower pace, unless you live in an area affected by a natural disaster. ^[1]  

A home insurance increase is triggered by claims, whether you’re filing one or if the entire area is filling claims. Wildfires, inflation, wars, a labor shortage and severe storms also play a role, but there are a few things you can do to ensure that you’re paying the lowest home insurance rate possible without compromising on coverage. Here are 21 things you can do about home insurance rate increases for lower monthly premiums in 2025.

Key Takeaways On average, homeowners insurance rates are still rising in 2025 but less dramatically than they did in 2024. You will see a higher home insurance rate if you have a lapse in coverage so stay insured. Comparing rates is the fastest and most effective way to offset homeowners insurance rate increases. Certain upgrades and additions may reduce your homeowners insurance costs tremendously.

1. Talk To Your Insurer

Most insurers won’t drastically reduce your home insurance insurance rate for being a loyal customer, but some do offer a small discount, maybe 5 to 10% ^[2]. It’s a good idea to speak with your agent to see how many other discounts apply and also figure out how you can reduce your rate in the future. 

2. Shop Around To Get the Best Rate

Compare home insurance rates to see who offers you the lowest homeowners insurance rate. Just make sure that when you compare pricing, you’re comparing apples to apples, not policies with different coverages and limits. Some agents rope you in with a low price only for you to find out that you’re only covered for a house fire, so ask questions about the coverage they are quoting you for, and only compare prices after applying as many discounts as you can. 

3. Increase the Deductible for Lower Monthly Payments

Homeowners insurance deductibles typically range from $100 to $5,000. ^[3] When you increase the deductible, you’re agreeing to have that amount deducted from a claim payout if your home is damaged or destroyed. 

A higher deductible will lower your monthly payments substantially, and if you’re not the type of person who likes to file claims, this is the best option for you to save money. Do keep in mind that with the higher deductible, you may need to reach into your wallet to complete a project, if the claim amount is not enough.

Speak with the insurance agent, when comparing quotes, to see how many discounts apply, and ask how you can reduce your rate in the future.

4. Upgrade Home Security System

A cheap security camera may not lower your home insurance rate, but a deadbolt, a fire alarm and smoke detectors should. 

A more comprehensive home security system or home monitoring solution will also help lower homeowners insurance increases, because certain features, like motion detection, window sensors and doorbell cameras, lower the chances that you will be burglarized or robbed in the future. ^[4]  

Ask your insurance agent which home security systems they discount before purchasing one because discounts vary among insurers.

5. Look for Additional Insurance Discounts

Each insurer has their own roster of discounts but every insurer has at least a few. It’s always a good idea to go over the offered discounts with your current insurer and when comparing quotes for a lower home insurance rate. 

If you reap enough discounts, you may be looking at premiums that are 25% cheaper by simply bundling home and auto. You can easily add on another 10% discount if you’re retired, even possibly if you work from home, depending on the insurer. ^[5] 

6. Improve Your Credit Score

Unless you live in California, Hawaii, Oregon, Utah, Nevada, Michigan, Maryland or Massachusetts, your credit score will be used to derive an insurance score. [6] Your rate will depend heavily on your FICO score so spend the next few months working on improving that score so your home insurance rate can go down. 

You’ll have to make timely payments and pay down credit card debt and stop applying for new credit cards! ^[7] After a few months, your credit score should be higher, and you’ll be ready to compare home insurance rates again.

7. Bundle Home and Auto

In many cases bundling home and auto policies is an easy way to get a big discount, up to 25% with some insurers. ^[5] However, you may be able to snag a better price if you buy separately too, for instance, if you find a really low car insurance rate but they don’t offer home insurance. It’s a good idea to get several quotes, with and without a bundle, to see which combination comes out cheapest.

8. Eliminate Coverage You Don’t Need

If you lock up your expensive jewelry in a safety deposit at the bank, it may be cheaper than buying a home insurance endorsement. Or, if you look closely at the limits of your contents coverage, also called personal property coverage, you may realize that you do not need an endorsement because you’re covered. It’s a good idea to create an inventory of everything you own to see if you can lower limits or get rid of unnecessary coverages.

In most states, your credit rating will be used to determine your premium so pay your bills on time and reduce credit card debt. 

9. Make Home Improvements

If you have a roof that’s on its last leg, you will be rated higher than if you have a relatively new roof or a newly reinforced roof. ^[5] The same goes for building a fence around a pool or trampoline to avoid accidents. Modernizing old plumbing and electrical systems will also earn you a lower rate. Ask your agent what they will discount in home improvements before you start a new project.

10. Re-evaluate Your Rebuilding Cost

Before slashing your coverage limits, take into consideration how much prices have gone up in materials and labor, along with shortages due to severe weather events. However, do not mistake your homeowners insurance dwelling coverage limits to include the value of the land; It should only cover the cost to rebuild the home and other structures. [8] If you are confusing the market value of a home with the rebuilding cost, you may be paying much more in home insurance than necessary.

11. Switch to a Private Insurer

If you have a government-program home insurance plan or have flood insurance from the National Flood Insurance Program (NFIP), you may be paying more than you need to pay. Having home and flood insurance is important, especially if you live in a flood zone, but you will likely find cheaper rates for a more comprehensive policy when buying from a private insurer because policies are more flexible and priced more competitively. ^[5][9]

12. Insure at Actual Cash Value, Not Replacement Cost Value

You will receive less money when filing a claim if you buy an actual cash value policy (ACV(, which factors in depreciation or wear and tear. A replacement cost value policy (RCV) is more expensive but covers more of the reported losses. ^[10]

13. Avoid Filing Small Claims

Every claim you file will increase your home insurance rate. It’s a good idea to avoid small claims unless the repair or rebuilding is quite expensive and not less than the deductible. Another reason to avoid filing small claims is your insurer may drop you for filing too many claims. Your deductible will be subtracted from the payout so keep that in mind when trying to decide if it is worth the rate increase to file a claim or not.

14. Avoid Buying a High-Risk Dog Breed

Aggressive dog breeds or certain animals may be excluded on your home insurance policy. If your dog’s breed is excluded, you won’t have the usual liability coverage you’d have if the dog were to bite someone who visits the home. Some insurers don’t exclude certain breeds but will raise your rate because of the high-risk pet. Commonly restricted dog breeds include ^[11]:

• Pit Bulls

• Rottweilers

• German Shepherds

• Doberman Pinschers

• Akitas

• Siberian Huskies

• Staffordshire Terriers

• Great Danes

• Chow Chows

Swimming pools and trampolines may raise your rate or even disqualify you from coverage unless you have secure fencing.

15. Stay Insured Without Lapses

Just as it is with car insurance, you will see a higher home insurance rate if you have a lapse in coverage, even by a day. Staying insured will ensure that your rate stays as low as possible so prioritize your insurance premium payments and pay on time.  

Other reasons to avoid lapses in home insurance coverage: It’ll hurt your credit score and it’s a huge risk to take to be uninsured. If you ever need to rebuild your home, doing it without insurance will surely break the bank.

If you get a notice of non-renewal from your insurer, shop around for a new insurer. As a last resort, you can buy coverage through your state’s FAIR plan (Fair Access to Insurance Requirements). ^[12]

16. Move to a Safer Neighborhood 

One of the most important factors in how you’re rated by a home insurer is where you live. If it’s a high-crime neighborhood, your chances of experiencing a burglary are much higher, so you pay higher premiums. Also, where you live determines the risk of natural disasters. 

You’ll see that in states, like Florida, which experiences many hurricanes, and California, which is at risk for earthquakes and wildfires, home insurance rates are higher and it’s sometimes difficult to find coverage. 

You can also pay a lower rate in a high-risk area by buying a more secure home. In California, for instance, a home with a wooden frame will cost less to insure because it can better withstand earthquake tremors. ^[5]

17. Spend More Time at Home

If you work from home, tell the insurance company. The reasons why retirees get a home insurance discount is that they are home more often and can prevent small disasters from becoming big ones. Your insurer may give you a small break if you’re a remote worker because homes are less prone to break-ins when the homeowner is present more often. 

However, if you run a home business, you may not be covered by home insurance if you file a claim for damages related to your business. Therefore, it’s important to consider a home-business endorsement if you’re an independent contractor and not a salaried employee. ^[13]

18. Install a Fence Around a Swimming Pool and Trampoline

To offset the home insurance increase of having a swimming pool or trampoline, build a secure fence around these recreational features that insurers called “attractive nuisances,” even if it’s not required by the insurer. In many cases, a claim may be denied if you didn’t have fencing. The reason swimming pools and trampolines increase rates significantly is that you are liable for injuries, even if trespassers are hurt using them. If you install one, be sure to tell your insurance agent. ^[14]

19. Create a Defensible Space Around Your Home

If you live in an area that is prone to wildfires, build a defensible space around your home. For instance, mulch and bark are flammable, so use gravel or concrete for the driveway. Get rid of dead or dying plants and weeds from the roof and surrounding your home, making sure that everything within 30 feet of the home is green and can’t ignite. Plant vegetation and trees at least 10 feet from the home and remove tree branches lower than six feet from the ground.. Flying embers can ignite all these things as well as combustible furniture or fencing. There are many other things you can do to make sure that if a fire starts, your home is safe. Showing photos of the defensive space to your insurer may help you lower premiums. ^[15]

20. Make Your Home Smarter

Being able to remotely lock your home, in the event that you forgot before leaving, makes your home much safer from burglars. Being able to monitor your home’s systems and to receive alerts if there’s ever anything amiss are the benefits of creating a smart home. Home automation, smart thermostats and smart heating and cooling systems may help you save on energy bills too while keeping your home safe from mishaps. The best part is the discounts on home insurance.

21. Install Indoor Fire Sprinklers

You may get as much as 35% off your homeowners insurance rate if you install indoor fire sprinklers, which may reduce fire damage tremendously. They may also increase the value of the home. ^[16] You may also protect your precious belongings in the event of a house fire. Now, that’s a win-win!