October 1, 2023


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Best Home Insurance Discounts | Bankrate

If you are curious about how to get home insurance discounts, the good news is you do not have to look very far. Almost every insurance provider offers numerous ways for homeowners to save and minimize the costs of annual premiums. Homeowners insurance provides invaluable financial protection if the absolute worst happens to your home or there is costly damage from a covered peril. The average cost of homeowners insurance is $1,312 per year for $250,000 in dwelling coverage, which makes discounts a helpful tool for managing the costs of a robust homeowners insurance policy.

For homeowners wondering, “how can I get discounts on homeowners insurance,” most insurance experts recommend comparing discount offerings from multiple providers when getting quotes. Home insurance discounts are as varied as the premiums themselves, so comparing provider discounts is essential to savings. Insurance providers usually offer a range of discounts, including bundling, new home construction and safety equipment discounts, to name a select few.

Best home insurance discounts

The best home insurance discounts depend on your unique circumstances, but the good news is, they are often relatively easy to obtain if you are eligible. Since discounts can make a huge difference in the amount you pay for your homeowners insurance premium, it could be worth quite a bit of money to inquire about eligibility. Bankrate put together a list of some of the more common and popular discounts for homeowners.

Claims-free discounts

A claims-free discount is earned when a homeowner does not file a home-related claim with any insurer, usually within a specified period, such as three or five years. Even if a homeowner moves their policy to another insurance provider, it is still possible to earn the discount. Still, a first-time homebuyer would not be immediately eligible for this discount.

Safety discounts

Numerous potential discounts fall under the safety discount umbrella. A safety discount could apply if a homeowner has an anti-theft or security alarm system installed or takes fire protection measures, such as installing smoke alarms or a fire extinguisher.

Multi-policy or bundling discounts

Purchasing a homeowners policy and another type of insurance policy with the same insurance provider could mean significant savings on homeowners premiums. Typically, bundling your car and home insurance policies will net you the biggest savings, but the discount percentage available will vary by provider.

New home or new buyer discounts

Several insurance carriers offer a discount if a homeowner purchases a new construction home or is a first-time homeowner. The number of years a home may qualify as a new home varies from one provider to another, so even if a home is not brand new, it may still qualify, so be sure to ask your insurance agent. And if this is your first time buying a home, be sure to mention that to your insurance agent when getting quotes for your policy as well.

Employee or military discounts

There are often special home insurance savings opportunities available for current or former military members. Other professions can sometimes save too, such as with home insurance discounts for teachers. Each insurance provider that offers this type of discount will have its own list of professions that qualify for added savings, so it’s important to verify whether these discounts are available and who qualifies with each carrier when you get quotes.

Restoration discounts

Another home insurance discount that is often available is one for those who take part in restoring a home. Homeowners who purchase an older home but then restore it to meet current local construction standards can often benefit from this type of discount. However, keep in mind that a restoration discount is generally only applied when almost all the systems have been replaced in a home, such as electrical and plumbing.

New roof discount

Roof replacement can cost a substantial amount of money, and a damaged or aging roof can pose a costly risk to homeowners insurance providers. But if you choose to replace your roof out of pocket, a new roof discount may apply. And if you have recently purchased a home where the roof was replaced prior to you moving in, be sure to inquire about the discount and whether the roof’s age makes it eligible for this discount.

Automatic payment and paperless statement discounts

Opting to have your home insurance premium automatically drafted from your bank account can often result in additional savings. There may be even more savings if you elect to receive paperless statements, too.

Discounts for retired people or seniors

One perk to getting older is earning home insurance discounts for seniors. Some insurance providers may refer to it as a mature or retired discount. One reason older homeowners might be able to earn these types of savings could be because they tend to stay closer to home or inside the house regularly, which may help deter crime and allow them to spot other potential problems sooner.

Smart home discounts

Smart home insurance discounts reward you for installing the latest technology to keep your home safer from possible fire or theft. Discounts for smart home technology might include savings for installing upgrades such as a smart thermostat, gas and water shutoff sensors or even the Amazon Echo Dot. Check with your preferred insurance provider to see what, if any, smart home discounts it offers to homeowners. Some insurance companies even partner with smart home technology companies and you might be able to score a free or discounted smart home device.

Frequently asked questions

How much does homeowners insurance cost?

The average cost of homeowners insurance in the United States is $1,312 per year for a policy with $250,000 in dwelling coverage, according to 2021 rate data obtained from Quadrant Information Services. Homeowners insurance costs depend on a wide range of factors, including the home’s age and condition, replacement costs and your claims history, which means your exact rates could be more or less expensive than the national average.

Are there other ways to lower homeowners insurance costs?

In addition to home insurance discounts, there are other impactful methods that can help you find further savings on your homeowners insurance policy. One option recommended by most insurance experts is to shop around and compare quotes for the same coverage from multiple home insurance providers, which can help you find the best rate available for your circumstances.

Which company has the cheapest homeowners insurance rates?

No home insurance company will be the cheapest for everyone because there are too many unique factors that go into calculating a premium. As a starting point for your search, though, Bankrate has reviewed 2021 data obtained from Quadrant Information Services and found Erie insurance and USAA offer some of the cheapest average annual rates in the U.S. for $250,000 in dwelling coverage. But keep in mind that these may not be the best or cheapest providers for you. Talk to your insurance agent and get quotes from multiple companies to see which insurance company can offer you the best rates based on your needs.