Homeowners insurance premiums have been rising over the past few years. According to the Insurance Information Institute the average premium in 2008 was $791, it jumped up to $1200 by 2022 and hit $1700 in 2024.
If your homeowners insurance has been climbing you may be looking for ways to cut your premium. The good news is that there are ways to dent that bill.
Everyone knows that there are numerous discounts available when it comes to car insurance, but many people are unaware that there are also a number of discounts and even credits available for homeowner’s policies.
Here are the top five homeowners insurance discounts that may have escaped your attention:
Homeowners Insurance Discounts (Top 5)
| Discount Term(s) | Details | Savings Range |
|---|---|---|
| Multiline | A multiline discount means that you bundle your insurance products together so insurance companies can provide more insurance services to one individual or family. The most common home insurance discount for multiline options is combining your home and auto insurance together with one carrier or insurance provider. | From 20% to 25% |
| New Home | A new home is always a bonus for a home insurance company because everything in the home is new which greatly reduces the risk. Your home does not have to be brand new, it can be 5 to 10 years old and you can still receive this discount. Speak with your home insurance agent about your new home because this type of discount may vary per state. | From 15% to 20% |
| No Smoking | Smoking has declined over the last decade but the number one cause of home fire deaths is still smoking. In fact, smoking was responsible for almost 19,000 residential fires in 2007, causing 595 deaths and $327 million in damage. If you have a smoker in the house, your insurance company is going to raise your rates due to the increased risk. If your home is smoke free, you could be eligible for a discount. While this credit is not going to be a huge money saver, it could shave 5 to 15 percent off of your premium. | From 15% to 20% |
| Security Alarms | Reduce the risk of theft and a burglary and purchase an alarm system to protect your home. | From 10% to 15% |
| Smoke Alarms | Greatly reduce the risk of fire in your home and purchase smoke detectors and fire extinguishers. It is advised by your local fire department to have a smoke alarm in every room in the house. | From 2% to 5% |
Homeowners Insurance Credits (Top 3)
Installing smoke detectors, a security system and covering your vehicle with the same insurer is a good start but to really kick-start your savings you have to dig a bit deeper. Here are the top 3 home insurance credits available to homeowners.
1. New Wiring – The U.S Fire Administration reports that in a typical year there are 67,800 home fires as a result of electrical problems. These fires caused 485 deaths and over $868 million dollars in damage.
There is nothing insurance companies hate more than a house burning down due to old or faulty wiring. If your house is of a certain age, you may want to consider having it rewired. A professional wiring job will help improve the safety of your home and will result in a new writing credit from many home insurers.
Call your agent or insurer to see if a credit is available and any standards that must be adhered to in order to get the credit. Look for a discount in the 10 percent range.
2. No Claims Discount - A study done by The Insurance Research Council (IRC) found that the average claim payment for homeowners insurance rose almost 173 percent between 1997 and 2011 from $229 to $626.
Every claim an insurer pays out is money out of their pocket so homeowners with no claims on their record are some of their favorite customers. While this is a fairly new discount, many insurers are jumping on board.
If you have been with the same insurer for a number of years, and have not filed a claim, call your agent and see if you qualify for a no claim discount. In many cases the discount can range up to 20 percent if you have been with the same insurer for over 10 years.
3. Just Get Older - This one is easy, all you have to do is continue aging. Retired customers are home more often which lowers the risk of fires or break-ins. They can quickly identify a broken pipe, which will limit the amount of damage the house suffers. They also tend to take better care of their homes because they have time.
If you are retired check with your agent to ensure that you are getting this credit. It should shave 10 to 25 percent off of your yearly premium.
Homeowners insurance can be expensive but hopefully the discounts and credits mentioned above has helped you learn more about your savings options as a homeowner. Make sure you speak with your home insurance agent about applying these discount and credit options. It's important to know that discounts may vary between states and cities.