Home insurance discounts are the easiest way to get cheaper homeowners insurance rates. While some discounts are for things you can't control, like the age of your home, you can get some of the best home insurance discounts with a little effort. Those include installing safety features like a burglar alarm or upgrades to your home, like storm shutters or a hail-resistant roof.
There are also discounts on home insurance for staying claim-free and for bundling your home and auto insurance with the same company. The savings for each homeowners insurance discount varies, but they can add up.
Below, we’ll show you how to save on homeowners insurance with discounts, the average savings for each discount, and which home insurance companies have the biggest discounts.
Key takeaways
- Many homeowners insurance discounts are available, including for updates to your home, such as an upgraded roof or burglar alarm.
- The new home discount is one of the biggest, saving you up to 40%.
- You can save up to 18% on your premium if you bundle your home and auto insurance policies with a multi-policy discount.
The best homeowners insurance discounts
These are the best home insurance discounts in terms of the percentage discount on your rates:
- New home construction
- Age of home (five years or fewer)
- Home and auto bundle
- Series of upgrades (electrical, heating, plumbing)
- Age of home (10 years or less)
- Construction type (fire resistant, superior)
- Roof upgrade
- Advance purchase
- 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.
| Discounts | Type | Average discount |
|---|---|---|
| New Home | New Construction | 40% |
| Age of home | 5 years or less | 26% |
| Bundle | Home And Auto | 18% |
| Upgrades | Electrical, plumbing, heating and other major systems | 13% |
| Age of home | 10 Years Old | 13% |
| Construction type | Fire resistive | 11% |
| Construction type | Superior | 11% |
| Upgrades | Roof Upgrade | 11% |
| Advance Purchase | 10+ Days Advance Purchase | 9% |
| Advance Purchase | 7 Days Advance Purchase | 8% |
| Loyalty | 10+ Years Renewal | 8% |
| Construction type | Masonry | 7% |
| Construction type | Frame - To 66% Masonry Veneer | 6% |
| Construction type | Frame - Over 66% Masonry Veneer | 6% |
| Paid in Full | Paid in Full | 6% |
| Loyalty | 5 Years Renewal | 6% |
| Sprinklers | Sprinklers | 6% |
| Claims Free | 5-Year Claims Free | 5% |
| Claims Free | 10+ Year Claims Free | 5% |
| Hail Resistant Roof | Hail Resistant Roof | 5% |
| Loyalty | 3 Years Renewal | 5% |
| Construction type | Asbestos/Stucco | 4% |
| Fire Alarm | Central Station | 4% |
| Fire Alarm | Fire Department | 4% |
| Gated Community | With Patrol | 4% |
| Bundle | Home and Umbrella | 4% |
| Bundle | Home and Life | 4% |
| Burglar Alarm | Police Department | 4% |
| Burglar Alarm | Central Station | 4% |
| Age of home | 15 years or less | 4% |
| Water Safety System | Water Leak Detection - Shut Off And Alarm | 4% |
| Water Safety System | Water Leak Detection - Shut Off | 3% |
| Upgrades | Electrical Upgrade | 3% |
| Gated Community | Without Patrol | 3% |
| Water Safety System | Water Leak Detection - Alarm | 3% |
| Automatic payments | Electronic Fund Transfer | 3% |
| Upgrades | Plumbing Upgrade | 2% |
| Construction type | Frame - To 33% Masonry Veneer | 2% |
| Burglar Alarm | Local | 2% |
| Upgrades | Heating Upgrade | 2% |
| Fire Alarm | Local | 2% |
| Age of home | 20 Years Old | 2% |
| Smoke Detector | Smoke Detector | 2% |
| Fire Extinguisher | Fire Extinguisher | 2% |
| Storm Shutter | Storm Shutters | 1% |
| Deadbolt | Deadbolt | 1% |
Explanations of discount categories:
- 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 central station. 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 homeowners insurance discounts 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.
Discounts for new homeowners
If you buy a new construction home, you'll get one of the biggest discounts when you buy homeowners insurance. If you are buying a new house, read our guide to insurance for new homeowners. The average new home discount is 40%, but it depends on your insurance company, homeowner profile, state and other factors. Below, you’ll see how carriers who offer a higher-than-average new-home discount compare on savings.
| Company | % savings |
|---|---|
| Nationwide | 76% |
| ASI Lloyds | 74% |
| Citizens | 65% |
| Travelers | 63% |
| California Automobile Insurance Company | 62% |
| Peoples Trust | 61% |
| CSAA Insurance Group | 58% |
| Grange | 58% |
| Security First | 57% |
| American Strategic Ins. (ASI) | 57% |
| Georgia Farm Bureau | 55% |
| American Family | 55% |
| Garrison | 55% |
| Federated National | 54% |
| USAA | 54% |
| Auto Club Group | 53% |
| Alfa | 53% |
| Pemco | 53% |
| Cincinnati Insurance | 52% |
| State Farm | 51% |
| Depositors | 51% |
| Hawaiian Insurance & Guaranty | 51% |
| Erie | 51% |
| Allied | 50% |
| Allstate | 47% |
| State Auto | 47% |
| St Johns | 46% |
| New York Central Mutual (NYCM) | 45% |
| United Farm Family | 45% |
| Memberselect (AAA) | 45% |
| Virginia Farm Bureau | 44% |
| Lighthouse | 44% |
| Nodak Mutual | 43% |
| New Jersey Manufacturers (NJM) | 43% |
| American Commerce (MAPFRE) | 42% |
| Maison | 42% |
| Farm Bureau | 42% |
| Fidelity Ins. | 41% |
| Automobile Ins. Co. of Hartford (Travelers) | 41% |
| Century Ins. | 41% |
Home and auto bundle discount
Based on Insurance.com’s most recent home insurance discount rate analysis, auto and home bundling is one of the biggest discounts you can get – on average, 18%, although bundling isn't always the best deal.
Here are the top insurance companies for home and auto bundle discounts, offering above-average savings.
| Company | % savings |
|---|---|
| Nationwide | 39% |
| United Farm Family | 33% |
| State Farm | 33% |
| Grange | 33% |
| American | 31% |
| CSAA Fire & Casualty | 30% |
| Massachusetts Bay | 29% |
| Farmers | 28% |
| State Farm | 28% |
| Allstate | 27% |
| Citizens Ins. | 27% |
| New York Central Mutual (NYCM) | 27% |
| Preferred | 26% |
| CSAA Insurance Group | 26% |
| Travelers | 25% |
| Pemco | 25% |
| Shelter Mutual | 25% |
| Oklahoma Farm Bureau | 25% |
| Farm Bureau of Arkansas | 24% |
| Erie | 24% |
| Memberselect (AAA) | 24% |
| Auto Club Family | 24% |
| Grange | 24% |
| Pennsylvania National | 23% |
| Safety Insurance | 23% |
| Country Mutual | 23% |
| Arbella | 23% |
| Mid-Century | 23% |
| Farm Bureau | 22% |
| Automobile Insurance Company of Hartford | 22% |
| Alfa | 22% |
| Encompass | 22% |
| Virginia Farm Bureau | 22% |
| Automobile Club of Southern California | 22% |
| Allied Ins. | 21% |
| Amco | 21% |
| Fire Insurance Exchange (Farmers) | 20% |
| Amica | 20% |
| Patriot Insurance | 20% |
| Milbank Insurance | 19% |
| American Family | 19% |
| Cincinnati Insurance | 19% |
| Kentucky Farm Bureau | 19% |
Roof upgrade discount
Upgrading your home’s electrical, heating, and plumbing systems earns you an average discount of 13%. A roof upgrade alone averages an 11% discount. Take a look at the insurers with the best roof upgrade discount below.
| Company | % savings |
|---|---|
| Auto Club Group | 30% |
| Cincinnati Insurance | 28% |
| American Family | 25% |
| Texas Farmers | 25% |
| CSAA Insurance Group | 20% |
| Memberselect (AAA) | 20% |
| Grange | 20% |
| Travelers | 19% |
| Nationwide | 19% |
| Citizens Ins. | 19% |
| Farmers | 18% |
| Depositors | 17% |
| Palisades | 16% |
| Farmers P&C | 15% |
| Century | 14% |
| Country Financial | 13% |
| Homesite | 13% |
| Fire Ins. Exchange (Farmers) | 13% |
| Garrison | 13% |
| USAA | 13% |
| ASI Lloyds | 12% |
| Acuity | 12% |
| State Auto | 12% |
Seniors discount
Some insurance companies offer seniors savings on their coverage. 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 8%; for five years, it’s 6% and for three years, it’s 5%.
Loyalty discounts are great reasons to stay with your insurance company, but that doesn't mean you shouldn't shop around. Getting quotes from other insurers every few years at a minimum is still a good idea. Your insurer's loyalty discount might pale compared to another insurer's new customer discount and other perks.
Claims-free discounts
The way 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; 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.
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. That’s 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.
