How to Lower Your Home Insurance Premium Without Sacrificing Coverage: 16 Smart Strategies
The average homeowner’s insurance premium in 2025 is around $2,100 per year. Whether you’re a first-time buyer, reviewing your current policy, or shopping for better coverage, learning how to lower your home insurance premium without sacrificing coverage is a smart financial move.
From increasing deductibles to bundling policies and uncovering discounts, these 16 strategies will help you save money while keeping your home protected.
1. Shop Around with an Independent Agent
Before renewing your current policy, compare quotes from multiple providers. Online tools can help, but an independent insurance agent offers unbiased guidance and access to a wider range of options. They’ll also ensure you’re getting every discount you qualify for.
2. Increase Your Deductible
Raising your deductible from $500 to $1,000 could save you up to 25%. Just be prepared to pay more out-of-pocket if you file a claim. Also note: some policies have separate deductibles for wind, hail, or earthquake damage.
3. Insure the Structure, Not the Land
You only need coverage for the structure of your home—not the land. Also, compare Actual Cash Value (ACV) vs. Replacement Cost coverage. ACV is cheaper but only covers depreciated value. Replacement cost offers broader protection but comes at a higher price.
4. Bundle Home and Auto Insurance
Bundling both policies with the same provider can save you 5%–15%. But double-check if bundling is cheaper than separate policies, especially if you’re eligible for loyalty discounts.
5. Make Your Home Disaster-Resistant
You may earn discounts by taking preventive steps, such as:
- Installing storm shutters or reinforced roofing
- Retrofitting for earthquakes
- Upgrading plumbing, electric, and HVAC systems
- Installing indoor sprinklers
- Cutting down risk-prone trees
- Improving drainage systems
Check with your agent to learn which improvements offer savings.
6. Enhance Home Security
Basic systems like smoke detectors or deadbolts can cut premiums by up to 5%. More advanced alarms that notify police or fire departments could save you up to 20%. Always check with your insurer before investing in upgrades.
7. Look Into Age-Related Discounts
Homeowners aged 55+ often receive discounts (up to 10%) due to increased home occupancy and maintenance. Ask your agent if you qualify.
8. Maintain Good Credit
In most states, your credit score can impact your insurance premium. Keep your credit healthy by paying bills on time and limiting new lines of credit.
9. Stay Loyal to One Insurer
Many providers reward loyalty. Staying with one company for 3–5 years could reduce your premium by 5%, and over 6 years might earn you up to 10%. That said, it’s still wise to compare rates periodically.
10. Review Coverage Limits Annually
Reassess your policy each year to avoid over- or underinsuring. For example, a floater for a high-value item may no longer be needed if that item has depreciated. Review your home’s replacement cost every 5–7 years.
11. Consider Government-Backed Flood Insurance
Standard homeowners insurance doesn’t cover flooding. If you’re in a high-risk area, check out the National Flood Insurance Program (NFIP) at floodsmart.gov for affordable coverage.
12. Factor in Insurance Costs When House Hunting
Buying a new home? Look for features that lower your premium:
- Proximity to fire hydrants or stations
- Newer electrical, heating, and plumbing systems
- Brick construction or fire-resistant materials
- Compliance with modern building codes
- Older homes may cost more to insure, while newer homes with high-end features can also drive up costs.
13. Explore Group Insurance Discounts
Check with your employer, alumni association, or union to see if they offer group insurance plans. These often come with lower premiums.
14. Avoid Filing Small Claims
Frequent claims can raise your rates or risk non-renewal. Only file for significant losses—especially if a minor claim is below or near your deductible.
15. Adjust “Other Structures” Coverage
If you have a small lot or no detached structures (like sheds or fences), consider lowering your “other structures” coverage limit.
16. Ask About Additional Discounts
Many carriers offer savings for:
- New homebuyers
- No recent claims
- Paperless billing
- Full payment upfront
- Automatic payments
- Military or professional affiliations
- Non-smokers
Your insurance agent can walk you through available discounts based on your situation.
Need Help Reviewing Your Policy?
C&S Insurance is here to help you find the best value on your homeowners policy—without sacrificing peace of mind. Contact us today to get started.