17 Best Ways To Save on Home Insurance in 2025

Everything is more expensive these days, including insurance. If you're wondering how to save on home insurance, you can do so easily, by making small changes, like shopping around for the best home insurance rate and taking advantage of various discounts. You can also save money with a lower homeowners insurance rate by raising your credit score, if it is used in your state. Certain home upgrades, such as new plumbing or new electric and heating systems, will help lower home insurance costs as well. See what else you can do to save on homeowners insurance in 2025.

Key Takeaways Save money by shopping around to see which insurance providers will offer you the best rate. Take advantage of the discounts insurance companies offer to lower your monthly premiums. Installing smart-home and anti-theft devices reduces risk, the likelihood of filing a claim and your home insurance rate.. Take into account the cost of homeowners insurance when deciding where to buy a home. Location impacts the cost of coverage.

1. Shop and Compare Rates for Home Insurance Annually

The best way to save money on homeowners insurance is to shop around. Insurance providers will offer different rates, so it is important to compare rates at least once a year or every six months, especially if you’re working on improving your risk profile. An independent insurance agent can compare several companies for you.

Don't look at the cost alone though. Your insurer should also have good reviews about how they handle claims. You don’t want to find out they have terrible customer service when filing a claim. Do an online search for insurers, ask your friends about their home insurance carriers or contact your state insurance department.

When researching online, visit the National Association of Insurance Commissioners (NAIC) website. You’ll find state-specific information that will help you find an insurer in your area, including reviews and complaint histories. ^[1] Also, be sure to look up the financial stability of the insurance providers you’re looking at with rating companies such as Standard & Poor’s.

2. Look for Additional Insurance Discounts

After tacking on a few insurance discounts you can pay considerably less in home insurance premiums. Bundling alone will decrease your rate as much as 25% so consider bundling or buying all your insurance products from the same carrier. ^[2]

Even little changes, like signing up for auto payments, may be discounted. Each carrier has a unique list of discounts so speak with the agent and go over all the ones they offer. They may include:

• Claims-free discount

• Green home discount

• HOA discount

• New home construction discount

• No-mortgage discount

• Military discounts

• Retiree or senior citizen discount

• Pay-in-full discount

• Bundle discount for home and auto

• New customer discount

• Loyalty discount

• Credit union membership discount

• Smart home discount

• Military discount

• Close proximity to a fire station discount

• Teachers and educators discount

• Firefighter discount

• Automatic payments discount

• Paperless statements discount

• Payment history of timely payments

• Claims free history

• Security systems discount

• Safety features discount

• Nonsmoker discount

• Multi-policy discount

3. Bundle Your Insurance

Bundling is when you buy more than one type of insurance policy from the same provider, such as buying homeowners insurance and auto insurance from the same company. It's the most common type of insurance savings strategy.

Bundling not only simplifies the management of your policies, it increases the ease of filing claims and can also result in substantial discounts, usually around 25%. ^[2]

Most major insurance providers allow you to bundle home insurance and car insurance. Ask about bundling discounts when you compare quotes.

4. Improve Your Credit Score

Improving your FICO score can help get you a better rate on your home insurance. Providers consider several factors when calculating your rates, including your credit history and score, because there is a correlation between having a poor credit score and filing claims.

Equifax, one of the nation's leading credit bureaus, states that a score between 670 to 739 is good. Anything lower than this, and your carrier may charge more for home insurance premiums. The lower the score, the higher the rates.

If your score is low, you can raise it by doing a few things. Bring your credit utilization below 30% so that you only owe 30% or less of your total credit or less. If it’s over 30%, pay down any debt you can to improve your credit score fast. ^[3]

Pay your bills on time and in full when you can. Also, look at your credit history and see if there are any mistakes or discrepancies on it. The three major credit bureaus have ways for consumers to file for corrections. Fixing these problems will also help raise your score.

5. Increase Your Deductible

Increasing your deductible will help lower your homeowners insurance premiums. Your deductible is the amount of money you pay out-of-pocket in the event a covered loss occurs. Only after you’ve paid the deductible will your insurance kick in and cover the rest. The higher your deductible, the lower your monthly payment.

A deductible is usually anywhere between $100 and $5,000. ^[4] However, your provider may have a separate deductible if you live in an area that is prone to disasters, such as a windstorm deductible or hail deductible. If you have an earthquake policy, it will have a separate deductible.

6. Evaluate How Much Insurance You Really Need

Every person’s coverage needs are different so it’s important to review your situation. Your coverage limits will impact how much you pay for insurance. There are several things to keep in mind when deciding how much insurance to get. Do you have enough coverage to:

• Cover losses or injuries to a visitor at your home (liability coverage)

• Rebuild your home (dwelling coverage)

• Reimburse your living expenses if you can’t live in your home due to a covered peril (additional living expenses coverage)

• Replace your belongings (personal property coverage)

You then have three different options for how you’d get paid if you were to file a claim. The following is from cheapest to most expensive ^[5]:

1. Actual Cash Value

This has a deduction for depreciation.

2. Replacement Cost

This policy does not have a deduction for depreciation.

3. Guaranteed or Extended Replacement Cost

This policy pays whatever it costs to rebuild the home to its original condition, even if it exceeds the policy limit.

7. Make Your Home More Disaster Resistant

Making your home more disaster resistant will lower your home insurance premiums if you report the changes to your carrier. ^[6] because you will be less likely to file a claim with your provider. Contact your carrier and ask what you can do to help make your home more resistant to the elements. Possible upgrades include:

• Storm shutters

• Reinforcing your roof

• Modernizing your heating

• Modernizing your plumbing

• Modernizing your electrical systems

• Ensure your home is properly bolted to the foundation

• Retrofitting for earthquakes

8. Install Smart Home Technology

Smart home technology can help bring down your home insurance rates between 5 and 13%. ^[7] These devices are designed to notify you and/or shut down elements of your home in the event there is a breakage of some kind. They are also meant to provide the user with quick access so they can manage the setting of their home.

Smart technology includes:

• Household monitors - Senses power surges and water failure and shuts off the corresponding system, mitigating potential damage to your home.

• Smart locks - Allows you to control the locks on your house remotely.

• Smart thermostats - Settings can automatically adjust according to your needs. They can also report when filters need to be replaced.

• Smart lighting - Can detect when occupants are present and can be set to make it seem like you’re home, even when you’re not.

• Fire and smoke detectors - Sense fire and smoke and can save lives and enable you to call for help right away.

• Ceiling sprinklers - Indoor sprinklers are activated by a fire and can salvage a home and some belongings.

• CO2 emission - This scentless odor is deadly, and there are smart devices that can detect it easily.

• Motion sensors - You can prevent a burglary by having smart sensors that detect movement outside your home.

• Water sensors - A water sensor can detect an indoor flood before it becomes a huge hazard. Flood insurance is separate from home insurance, if the flood was caused by an external factor, like heavy rains or a tornado. You'd need flood insurance for coverage.

9. Install Antitheft Devices

You can lower your monthly home insurance payments by installing anti-theft devices to secure your home and belongings so you won’t have to file a claim later.

You have options from buying a Blink doorbell camera to professional monitoring services. Insurance providers will offer discounts for video surveillance cameras and home security systems that come with an alarm, door and window sensors, and motion detection sensors. ^[8]

10. Get Rid of the Swimming Pool or Trampoline

There’s a reason insurers call swimming pools and trampolines an “attractive nuisance.” If you have recreational equipment on your property that can potentially hurt someone, consider getting rid of them or building fencing so that passersby – specifically children – can’t access them and get hurt.

Liability coverage is standard with homeowners insurance, and it protects you in the event that someone is hurt or their property is damaged while at your home. You will still be liable for injuries and drownings, even if the children were trespassing. ^[9]

11. Consider the Cost of Homeowners Insurance When You Buy a Home

Part of being able to save money on your homeowners insurance is making the right choices before you purchase a home. You could pay lower rates if your home is near a fire station and in a low-crime neighborhood. Additionally, you could save if your home is situated near a fire hydrant.

Look at the electrical, heating and plumbing systems in the homes you’re considering. You’re better off if they have been updated. In fact, you’ll get a discount if it’s a new home because all the systems will be in good shape.

If you live in an area with lots of windstorms, a home made of brick will be cheaper to insure. Similarly, those who live in earthquake-prone locations may save on earthquake insurance by buying a home with a wooden frame. ^[10]

Contact the Comprehensive Loss Underwriting Exchange (CLUE) to get the report for the home you're interested in.

12. Avoid Smoking

Smoking is a big fire hazard. Insurance companies will take into account the smoking habits of occupants when calculating insurance costs. Smoking is a fire damage risk insurance companies would rather avoid. Therefore, smokers pay up to 20% more on coverage than non-smokers. ^[11]

13. Check for Loyalty Discounts

Shopping around and switching insurers usually saves homeowners more money, but in some situations, you may benefit from staying put. Many insurance companies offer a loyalty discount for customers who have stayed with that provider for a predetermined amount of time. The loyalty discount may save you anywhere between 5 and 20% on their rates. ^[12] Comparing rates can save you as much as 45%.;

14. Avoid Filing Claims

Your insurance is designed to protect you in case you do have to file a claim, but you should only do so if you can’t shoulder the cost of repairs. Each claim you file will increase your home insurance rate, so keep that in mind if you’re hoping for a payout for a small fix. Too many claims can cause your home insurer to drop you, too. ^[13]

15. Upgrade Your Roof

A new or upgraded roof will lower home insurance rates because there’s less of a chance of leaks and other damages caused by a faulty roof. Insurers are very specific, too, about how much of a claim they will pay for an aging roof. For instance, if your roof is ten years old, you will most likely only get partial coverage for roof repairs if you file a claim. ^[14]

16. Move to a Neighborhood With a Low Crime Rate

You can get crime statistics about the neighborhoods you’re considering buying a home in. Insurers also have access to this information, which significantly impacts home insurance rates. If the chances of your home being broken into are high, so are the chances of you filing an insurance claim. ^[15]

17. Review Your Policy Annually

Things change over the course of a year, and so do insurance rates. It’s always best to go over all the coverages you have and to update your home inventory to make sure your personal property coverage is accurate. While you’re looking at your existing policy, it makes sense to compare rates elsewhere too, to see if a change in your profile may bring you a much lower rate with another insurance company.

Whether you’re buying your first home, buying a new one or just trying to find a better deal, SmartFinancial has you covered. Enter your zip code below or call 855.214.2291 to receive free home insurance quotes from agents in your area offering the lowest rates.