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How to Save on Homeowners Insurance

Updated April 24, 2024 . AmFam Team

Homeowners insurance is designed to help protect you from unexpected losses. However, that sense of security comes with a price — your premium. For the best value, balancing cost and quality is essential.

Use the following tips to reassess your homeowners policy. They may be able to help you save on your premium without losing needed coverage.

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9 Tips to Save on Homeowners Insurance

Reevaluate your home insurance premium using the following tips.

Shop Around

Quoting different insurers lets you compare prices from multiple companies. It may even help you identify unnecessary coverages and discover protection gaps in your existing policy.

While shopping, remember that a premium reduction shouldn't come at the cost of your essential coverages. When querying different insurers, have your current homeowners policy available. Doing so helps you adequately compare your existing coverages and premiums to quoted prices and coverages.

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Bundle Insurance Policies

You may want to consider bundling if your insurance policies are from different providers. Bundling insurance means buying multiple policies from one provider, such as home and auto insurance.

Purchasing your policies from one insurer could simplify your policy management and may even help you score a multi-product discount. Our customers can save up to 23% by bundling their auto and homeowners insurance coverages.*

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Raise Your Deductible

Your deductible is the amount you agree to pay your insurance company before it can help cover an approved claim. Typically, selecting a lower deductible results in a higher premium. As follows, a higher deductible usually results in a decreased premium.

If you have a low deductible, consider increasing it to lower your premium. However, be mindful that raising your deductible will incur a higher cost when filing a claim. When selecting your new deductible, ensure you're still comfortable with your claim responsibilities.

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Ask About Homeowners Insurance Discounts

From switching to paperless billing to making smart home technology updates, insurers offer various opportunities for customers to save on homeowners insurance. Many times, all you need to do is ask your insurance agent which home insurance discounts you may qualify for.

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Improve Your Home Security

Safety and security systems may help prevent insurance claims, such as theft and fire damages. As a result, many insurance companies use discounts to encourage customers to install home security systems and tools.

Therefore, proactively protecting your home may earn you a smart home discount on your insurance policy. That may be true whether you buy an entire home security system or add more smoke detectors.

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Update Your Home

Updating your home's systems, such as plumbing or heating, may help prevent expensive damages and insurance claims. As a result, some insurers offer customers home renovation discounts.

If you’ve updated your home's system(s) within the past 15 years, ask an insurance agent if you qualify for our home renovation discount.

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Improve Your Credit Score

Insurers use your credit history to help calculate your credit-based insurance score. This score helps insurers forecast your performance as a customer and your likelihood of filing a claim. As a result, credit-based insurance scores typically influence insurance premiums.

Therefore, increasing your credit score may help you lower your home insurance premiums.

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Reassess Your Home Inventory

Part of your homeowners insurance includes coverage for your personal property. Creating a home inventory by listing valuables in and around your home may help you identify unnecessary coverages. By removing unneeded coverages, you may be able to lower your insurance premium.

For example, your standard home insurance policy's personal property limits may already cover items listed in your scheduled property coverage. You could also find that some items may need replacement cost coverage versus actual cash value coverage.

After completing your home inventory, contact your insurance agent to determine your coverage needs.

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Discover More Homeowners Insurance Savings

Contact your American Family Insurance agent to determine your eligibility for each homeowners insurance discount. Your agent may also help you find and remove unneeded coverages to help ensure you're only paying for the protection you need.

This information represents only a brief description of coverages, is not part of your policy, and is not a promise or guarantee of coverage. If there is any conflict between this information and your policy, the provisions of the policy will prevail. Insurance policy terms and conditions may apply. Exclusions may apply to policies, endorsements, or riders. Coverage may vary by state and may be subject to change. Some products are not available in every state. Please read your policy and contact your agent for assistance.

*Customers who bundle home and auto insurance policies may save up to 23% on both policies together (as of December 2023). Discounts may vary by state, property, policy form and company underwriting the home and/or auto policy. Discounts may not apply to all coverages on a home or auto policy.

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