What are homeowners insurance discounts?
Homeowners insurance discounts are percentage reductions in your premiums that are applied for risk-reducing factors like security systems, home age, and upgraded roofs, as well as for non-risk-based factors like bundling your home and auto with the same company.
Most insurance companies allow you to stack multiple discounts to save more, but generally, there is a cap on the total amount you can save of between 30% and 40%.
What are the biggest homeowners insurance discounts?
The biggest home insurance discounts are for new construction or homes less than 10 years old, followed by bundling. Home construction rated fire resistive or superior earns the third-largest discount.
These are the top home insurance discounts:
- New home construction
- Age of home (10 years or fewer)
- Home and auto bundle
- Construction type (fire resistant, superior)
- Series of upgrades (electrical, heating, plumbing)
- Roof upgrade
- Advance purchase (before closing or expiration of previous coverage, number of days varies)
- Loyalty (10 years or more)
Below is a list of home insurance discounts and the average annual savings for each. Discount amounts and availability vary by state.
| Discount category | Discount type | Average percent discount |
|---|---|---|
| New home | New construction | 36% |
| Age of home | 5 years old | 32% |
| Age of home | 10 years old | 17% |
| Bundle | Home and auto | 16% |
| Construction type | Fire resistive | 8% |
| Construction type | Superior | 8% |
| Advance purchase | 7 days advance purchase | 7% |
| Advance purchase | 10+ days advance purchase | 7% |
| Upgrades | Roof upgrade | 7% |
| Upgrades | Heating, electrical and plumbing | 7% |
| Construction type | Masonry | 6% |
| Age of home | 15 years old | 6% |
| Loyalty | 10+ years renewal | 5% |
| Construction type | Frame up to 66% masonry veneer | 5% |
| Construction type | Frame - Over 66% Masonry Veneer | 5% |
| Loyalty | 5 Years Renewal | 4% |
| Sprinklers | Sprinklers | 4% |
| Fire Alarm | Central Station | 4% |
| Paid in Full | Paid in Full | 4% |
| Loyalty | 3 Years Renewal | 3% |
| Bundle | Home and Umbrella | 3% |
| Burglar Alarm | Central Station | 3% |
| Fire Alarm | Fire Department | 3% |
| Bundle | Home and Life | 3% |
| Age of home | 20 Years Old | 3% |
| Gated Community | With Patrol | 2% |
| Burglar Alarm | Local | 2% |
| Water Safety System | Water Leak Detection - Shut Off | 2% |
| Water Safety System | Water Leak Detection - Shut Off And Alarm | 2% |
| Automatic payments | Electronic Fund Transfer | 2% |
| Burglar Alarm | Police Department | 2% |
| Fire Extinguisher | Fire Extinguisher | 1% |
| Deadbolt | Deadbolt | 1% |
| Upgrades | Heating Upgrade | 1% |
| Claims Free | 5 Year Claims Free | 1% |
| Claims Free | 10+ Year Claims Free | 1% |
| Storm Shutter | Storm Shutters | 1% |
| Upgrades | Electrical Upgrade | 1% |
| Upgrades | Plumbing Upgrade | 1% |
| Gated Community | Without Patrol | 1% |
| Retirees | Retirees | 1% |
| Smoke Detector | Smoke Detector | 1% |
| Hail Resitant Roof | Hail Resistant Roof | 1% |
| Fire Alarm | Local | 1% |
| Water Safety System | Water Leak Detection - Alarm | 1% |
| Construction type | Masonry-Venner | <1% |
| Construction type | Frame - To 33% Masonry Veneer | <1% |
| Construction type | Asbestos/Stucco | <1% |
*Homes are classified by insurers as frame, masonry or superior. You get a bigger discount for a superior classification because the floors, roof and exterior walls are made of metal, concrete or other noncombustible material.
**Burglar and fire alarms are also classified. A system with central monitoring in place is called a central station system. These systems are equipped with central monitoring staff who will take action by alerting the police and fire departments and by calling the homeowner to verify the incident. Fire department/police department systems directly alert police and fire departments. Local alarms are systems with audible alarms and other features that only alert the homeowner –there is no auto-response, so someone would have to call the police or the fire department.
Common discounts and how much you'll save by company
Below, we’ll describe some of the most common discounts on homeowners insurance and how much you can expect to save if you qualify by company. Understanding the different factors that contribute to overall insurance costs is important to maximizing your savings.
Allstate $1,709 $1,282 -25% Farmers $2,323 $1,812 -22% Nationwide $2,013 $1,228 -39% Progressive $2,426 $1,262 -48% State Farm $1,658 $1,227 -26% Travelers $3,404 $2,213 -35% USAA $1,921 $1,191 -38%
Discounts for new homeowners
If you buy a newly constructed home (built within the past year), you'll get one of the biggest discounts when you buy homeowners insurance. If you are buying a new house, learn more about insurance for new homeowners. The average new home discount is 36%, but it varies widely by carrier and location. Among national carriers, Progressive has the biggest discount at 58%. but regional carriers may offer bigger discounts.
The table below provides the average new home discount from carriers both large and small; note that not all of these carriers are available in all states.
| Company | Average percent discount |
|---|---|
| Georgia Farm Bureau | 82% |
| Farm Bureau Insurance of Arkansas | 61% |
| Progressive | 58% |
| Mercury Insurance | 55% |
| Armed Forces Insurance | 52% |
| Grange Insurance | 51% |
| Erie Insurance | 50% |
| Nationwide | 46% |
| USAA | 45% |
| Travelers | 44% |
| Universal Insurance Holding | 44% |
| PEMCO | 43% |
| Cincinnati Insurance | 43% |
| Alfa Insurance | 41% |
| Acuity Insurance | 40% |
| HCI Group Inc | 40% |
| The Hanover | 40% |
| Louisiana Farm Bureau | 38% |
| Southern Farm Bureau | 38% |
| Ocean Harbor | 36% |
| Westfield Insurance | 36% |
| NJM | 35% |
| Amica | 35% |
| Allstate | 34% |
| American Family | 34% |
| Idaho Farm Bureau | 33% |
| NYCM Insurance | 33% |
| Mapfre Insurance | 32% |
| West Bend Insurance Company | 31% |
| Western National Insurance | 30% |
| CSAA Insurance (AAA) | 30% |
| State Farm | 29% |
| Iowa Farm Bureau | 29% |
| Michigan Farm Bureau | 29% |
| Kentucky Farm Bureau | 29% |
| Nodak Insurance | 29% |
| Farmers | 27% |
| Island Insurance | 27% |
| Indiana Farmers Insurance | 27% |
| South Carolina Farm Bureau Mutual | 27% |
| Frankenmuth Insurance | 26% |
| Virginia Farm Bureau | 26% |
| Auto-Owners | 25% |
| Country Financial | 25% |
| Tokio Marine Holdings | 25% |
| Farmers Mutual of Nebraska | 24% |
| Shelter Insurance | 23% |
| Farm Bureau Insurance of Tennessee | 22% |
| IMT Insurance | 21% |
| Oklahoma Farm Bureau | 20% |
| Heritage Insurance Holdings | 19% |
| Safety Insurance | 19% |
| Franklin Mutual | 18% |
| North Star Mutual | 18% |
| Agraria Mutual | 18% |
| Vermont Mutual | 17% |
| MMG Insurance | 17% |
| AIG | 16% |
| Co-operative Insurance Companies | 16% |
| Plymouth Rock Assurance | 15% |
| North Carolina Farm Bureau | 15% |
| Universal Insurance Co | 15% |
| Andover Insurance | 14% |
| Auto Club Group - ACG (AAA) | 14% |
| Chubb | 13% |
| Auto Club Enterprises (AAA) | 13% |
| Dongbu Insurance | 12% |
| Arbella Insurance | 12% |
| Cumberland Insurance | 12% |
| RLI Insurance | 3% |
Home and auto bundle discount
Based on Insurance.com data, auto and home bundling is one of the biggest discounts you can get, at an average of 16%; State Farm has the biggest discount among national carriers at 29%, although regional carriers may offer larger discounts. Bundling isn’t always the best deal; you can sometimes save more by keeping them separate, so shop around and compare your options.
Here are the top insurance companies for home and auto bundle discounts, offering above-average savings.
| Company | Average percent discount |
|---|---|
| NYCM Insurance | 32% |
| State Farm | 29% |
| Virginia Farm Bureau | 28% |
| Iowa Farm Bureau | 28% |
| Acuity Insurance | 28% |
| Shelter Insurance | 28% |
| Mapfre Insurance | 27% |
| Safety Insurance | 25% |
| The Hanover | 24% |
| Oklahoma Farm Bureau | 24% |
| PEMCO | 24% |
| Country Financial | 24% |
| Grange Insurance | 22% |
| Arbella Insurance | 21% |
| Auto Club Enterprises (AAA) | 21% |
| NJM | 20% |
| Nationwide | 20% |
| Kentucky Farm Bureau | 19% |
| Farmers Mutual of Nebraska | 19% |
| Mercury Insurance | 19% |
| American Family | 17% |
| Allstate | 17% |
| Frankenmuth Insurance | 17% |
| Erie Insurance | 17% |
| MMG Insurance | 16% |
| Farmers | 15% |
| Western National Insurance | 15% |
| Vermont Mutual | 15% |
| Auto Club Group - ACG (AAA) | 15% |
| Michigan Farm Bureau | 15% |
| Union Mutual | 14% |
| Auto-Owners | 14% |
| Ocean Harbor | 13% |
| CSAA Insurance (AAA) | 13% |
| Idaho Farm Bureau | 13% |
| Georgia Farm Bureau | 13% |
| Travelers | 13% |
| IMT Insurance | 12% |
| AIG | 11% |
| Amica | 11% |
| Alfa Insurance | 10% |
| South Carolina Farm Bureau Mutual | 10% |
| Agraria Mutual | 10% |
| Co-operative Insurance Companies | 10% |
| Dongbu Insurance | 10% |
| Quincy Mutual | 10% |
| Indiana Farmers Insurance | 10% |
| Island Insurance | 10% |
| Chubb | 10% |
| Cumberland Insurance | 10% |
| Westfield Insurance | 10% |
| USAA | 9% |
| Southern Farm Bureau | 9% |
| Louisiana Farm Bureau | 9% |
| Nodak Insurance | 8% |
| Cincinnati Insurance | 8% |
| North Star Mutual | 8% |
| Farm Bureau Insurance of Tennessee | 7% |
| Tokio Marine Holdings | 6% |
| Andover Insurance | 5% |
| Heritage Insurance Holdings | 4% |
| Farm Bureau Insurance of Arkansas | 4% |
| Universal Insurance Co | 3% |
| Armed Forces Insurance | 2% |
| Progressive | 2% |
| HCI Group Inc | 1% |
| Franklin Mutual | 1% |
| Citizens Property Insurance | <1% |
Roof upgrade discount
Upgrading your roof earns you an average discount of 7%. Progressive offers the largest home insurance discount among national carriers at 12%, but regional carriers may offer larger discounts. Compare carriers by discount for a roof upgrade below.
| Company | Average percent discount |
|---|---|
| Armed Forces Insurance | 28% |
| Farm Bureau Insurance of Arkansas | 13% |
| Grange Insurance | 13% |
| Progressive | 12% |
| Cincinnati Insurance | 11% |
| The Hanover | 11% |
| Travelers | 11% |
| Erie Insurance | 11% |
| Country Financial | 9% |
| American Family | 9% |
| Ocean Harbor | 9% |
| Nationwide | 8% |
| Southern Farm Bureau | 8% |
| Louisiana Farm Bureau | 8% |
| Nodak Insurance | 7% |
| USAA | 6% |
| Union Mutual | 6% |
| Acuity Insurance | 6% |
| Michigan Farm Bureau | 5% |
| Auto-Owners | 4% |
| Allstate | 4% |
| Mercury Insurance | 4% |
| Westfield Insurance | 4% |
| NYCM Insurance | 3% |
| Auto Club Group - ACG (AAA) | 3% |
| Frankenmuth Insurance | 3% |
| AIG | 2% |
| CSAA Insurance (AAA) | 2% |
| Farmers Mutual of Nebraska | 2% |
| Kentucky Farm Bureau | 2% |
| West Bend Insurance Company | 2% |
| Western National Insurance | 2% |
| Idaho Farm Bureau | 1% |
| State Farm | 1% |
| Farmers | 1% |
| HCI Group Inc | 1% |
| Tokio Marine Holdings | 1% |
| Alfa Insurance | 1% |
| Iowa Farm Bureau | 1% |
| South Carolina Farm Bureau Mutual | <1% |
| Heritage Insurance Holdings | <1% |
| Shelter Insurance | <1% |
| NJM | <1% |
| Citizens Property Insurance | <1% |
Seniors discount
Some insurance companies offer discounts on homeowners insurance for seniors. Typically, to qualify, the house must be your primary residence, you have to be age 55 or older and you must work outside of your house less than 24 hours a week. The Hartford/AARP is one example of a company that offers a senior/retired discount on home insurance.
Loyalty discounts
To qualify for loyalty discounts, you usually have to remain in good standing, and many insurers only offer the discount to those who are claim-free for a certain period. For 10 years, the average savings is 5%; for five years, it’s 4% and for three years, it’s 3%.
Loyalty discounts are great reasons to stay with your insurance company, but that doesn't mean you shouldn't shop around. Your insurer's loyalty discount might pale compared to another insurer's new customer discount and other perks, so compare rates annually.
Claims-free discounts
How the claim-free discount on home insurance is applied, like all other discounts, depends on your insurance company’s guidelines. Some will give a discount if you don’t file a claim for three years, while for others, it may be five or 10. Others will give the discount over a period of years, typically three to 10, and increase it the longer you remain claims-free.
Security system discounts
The amount of the home insurance discount for security systems depends on the security enhancements and type of alarm system you install. You’ll get more savings for a high-end, central alarm security system that alerts the police of a break-in and includes fire protection than for deadbolt locks and passive burglar alarms that sound but don't alert the police through a monitoring system.
To qualify for the maximum discount most home insurance companies offer, your alarm system must include central monitoring that connects to emergency services. When an intruder is detected, it sets off an audible alarm at your house and the system sends a signal to the alarm company's monitoring facility. The alarm company’s monitoring staff usually calls you first and if there's no response or you report an intruder, the monitor notifies the police or fire department. A less expensive system with monitoring that contacts you but does not notify the police or fire departments may earn some discount, but it will be less.
Fire prevention and detection discounts
Fire sprinklers, fire alarms, fire extinguishers located on every floor of the house and smoke detectors will all typically earn you a home insurance discount. Sprinklers and fire alarm systems with central monitoring, meaning that the alarm company staff contacts you and the fire department when a fire is detected, earn the biggest discounts.
In California, you can also get a discount for wildfire mitigation steps you have taken to protect your home from wildfire damage.
New customer discounts
Changing insurance companies can earn you a discount. But most insurers only include the discount for a limited period. So, you'll want to figure out whether the discount for a short time period, say a year or two, is worth changing your insurance - and losing your loyalty discount.
Gated community, association, or neighborhood watch discounts
A gated community, a neighborhood watch or a homeowners association show insurers that you're a lower risk.
Insurers offer modest discounts for these scenarios, so if you fit any of these situations, contact your insurance company.
Married discount
Being married can typically net a small discount because married people present less risk statistically than single people.
Inflation adjustment discount
You can get a discount if you're willing to increase your home's dwelling coverage to reflect an inflation increase. Insurers can then raise your home's coverage to allow for inflation.
This lets the insurer keep up with rising costs and home rebuilding costs rather than increase the dwelling coverage at renewal time.
Military and other occupational discounts
Some insurance companies offer home insurance discounts to active military members. Emergency responders, educators and others may also earn a discount as some carriers offer savings to people in these professions.
How can you get homeowners insurance discounts?
Getting homeowners insurance discounts is easier than you might think. Here are some steps to help you get started:
- Contact your insurance company: Contact your insurance provider and inquire about the discounts they offer. They can help you determine which discounts you qualify for and how to apply them to your policy.
- Review your policy: Review your policy closely to identify any discounts you might be eligible for. Look for discounts related to your home’s security features, your credit score, and your occupation.
- Bundle policies: If you have multiple insurance policies with the same provider, you may be eligible for a multi-policy discount. This can help you save even more on your home insurance.
By following these steps, you can uncover various discounts for homeowners insurance and significantly reduce your premiums.
How can you qualify for more home insurance discounts?
Maximizing insurance discounts requires some effort, but it can pay off in the long run. Here are some tips to help you get the most out of your discounts:
- Keep your credit score high: A good credit score can help you qualify for lower insurance rates. Make sure to pay your bills on time and keep your credit utilization low.
- Install security features: Installing security features such as deadbolt locks, smoke detectors, and security cameras can help you qualify for discounts.
- Avoid small claims: Filing small claims can increase your insurance rates. Try to avoid filing claims for minor damages and instead pay for them out of pocket.
- Shop around: Compare quotes from different insurance companies to see which one offers the best discounts.
The importance of good credit
Good credit is essential for getting the best possible rate on your home insurance policy. Insurance companies use credit scores to determine the likelihood of a claim being filed. If you have a good credit score, you’re considered a lower risk, and your insurance rates will be lower. Here are some tips to help you maintain good credit:
- Pay your bills on time: Late payments can negatively affect your credit score. Make sure to pay your bills on time to keep your credit score high.
- Keep your credit utilization low: Lower credit utilization can help you maintain a good credit score.
- Monitor your credit report: Check your credit report regularly to ensure there are no errors. Dispute any errors you find to keep your credit score accurate.
NOTE: Some states (California, Massachusetts and Maryland prohibit the use of credit for insurance pricing, and other states limit its use.
Home insurance discounts: The bottom line
With home insurance rates rising, maximizing discounts is more crucial than ever. By bundling policies, upgrading home features, maintaining a good credit score, and staying claims-free, homeowners can significantly reduce their insurance costs.
Discounts can add up to substantial savings, with some of the best offers reaching up to 40%. It's essential to regularly review your policy, compare providers, and ensure you're taking full advantage of available discounts to keep your premiums as low as possible.
Got a question about insurance? Our verified experts are here to help.
Verified expert advice and trusted by 50,000+ usersMethodology
We partnered with Quadrant Information Services to gather average rate and discount data in all 50 states and Washington, D.C. Discounts are averages calculated based on rates gathered from 34,595 ZIP codes and 134 insurance companies.
National and state home insurance averages are based on the following parameters:
- $300,000 in dwelling coverage
- $300,000 in liability coverage
- A $1,000 deductible
- A 2% hurricane deductible in applicable states
- Good credit
Learn more about our data and methodology.
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