Home insurance companies offer a variety of discounts that can bring down your home insurance rates. Find out which homeowners insurance discounts to ask for and where they're available to make sure you're paying the lowest possible rate.
Below, we’ll discuss how to save on homeowners insurance with discounts, how much you can expect to save for each discount, and which home insurance companies have the biggest discounts.
- Homeowners insurance discounts are applied in a number of ways, including when you buy a new policy or make changes to your home.
- Depending on your insurance company, homeowner profile, state and other factors, you can get a new home discount of up to 40%.
- You can save up to 18% off on your premium if you bundle your home and auto insurance policies.
Top homeowners insurance discounts
Of the discounts Insurance.com reviewed in 2022, here are the top 10 types of home insurance discounts that save you the most money on your policy:
- 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)
Here are the average annual savings you can get for common discounts, based on Insurance.com’s 2022 rate data analysis.
| 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 resistant | 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 Resitant 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% |
Here are some explanations of the discount categories in the chart above:
- 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.
How do home insurance discounts work?
Some home insurance discounts are applied when you buy a homeowners insurance policy, while others go into effect when you upgrade your home or make a change to your policy.
When you buy a new policy, don't be afraid to ask your insurance company if you're not sure if you're eligible for a discount. Common discounts you can receive when you purchase coverage include a home and auto bundle and a new home discount.
If you already have home insurance, you don't have to wait to renew your policy to get discounts. Contact your home insurance company and provide them documentation of any upgrades that could lower your rates.
There are also policy-level discounts that may arise over time. For instance, you may qualify for a loyalty discount or a claims-free discount if you’ve had the same policy in effect for years and haven’t made any claims. Check in with your insurance company at renewal even if you haven’t done any work on your home.
It’s also important to know the following:
Discount amounts can be capped. You've read about all of the above discounts and you're adding them up in your head. Now, for the bad news – insurers usually place limits on the total percentage by which your premium can e discounted. The discount cap varies by insurance company, but can be around 30% or 40%.
Not everyone gets the “up to” amount. The highest savings amount may only be for those who meet certain qualifications. For instance, homeowners with excellent credit who have not filed any claims for a period of five years. Your discount amount will depend on your homeowner profile, where you live, and your insurance company.
Discounts vary by state and insurance company. Not all discounts are offered in all states or by all insurance companies. Many carrier websites’ discount sections will include in the small print a listing of which states are either included or excluded, so look for that when researching. And of course, one insurance company may offer a discount for, say, living in a gated community, while another may not.
Getting lots of discounts doesn’t always mean you’re paying the lowest price. You may find that a homeowners insurance company offering only a few discounts gives you an overall lower price for your policy.
How to get home insurance discounts
Homeowners discounts generally fall into four categories:
- Your home’s building materials, age and upgrade status
- Your home’s security
- Your policy
- Your homeowner profile
In terms of weather damage, accident and theft prevention, you can earn discounts if you:
- Upgrade your electrical, plumbing, heating system
- Install stormproof materials
- Install water-leak and fire-prevention systems or alarms, sprinklers, smoke detectors, etc.
- Install a security system or deadlock bolts
You can also ask your insurance company how to qualify for insurance discounts by:
- Bundling your coverage with your auto insurance or other types of insurance
- Staying with the same company to earn a loyalty discount
- Not filing claims for three to five years
- Paying in advance, paying in full or setting up electronic funds transfer
There are also a few personal factors that can get you a discount, such as:
- Being married
- Being a non-smoker
- Being retired
- Being in the military or having a certain type of job
Common homeowners discounts
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
Buying a brand-new home is a huge milestone for many and an added bonus is getting one of the highest 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 can be higher or lower, depending 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, according to Insurance.com’s 2022 data:
| 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%.
Here are the top insurance companies for home and auto bundle discounts, offering above- average savings, based on Insurance.com’s 2022 rate analysis:
| 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 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 (Am. Family) | 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, up to 10%, according to the Insurance Information Institute. Typically, to qualify, the house must be your primary residence, you have to be age 55 or older and 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
One caveat on loyalty discounts: You usually have to remain in good standing and many insurers only offer the discount to people who are claims-free for a certain period of time. For 10 years, the average savings is 8%, for five it’s 6% and for three it’s 5%.
Loyalty discounts are great reasons to stay with your insurance company, but that doesn't mean you shouldn't shop around. It's still a good idea to get quotes from other insurers every few years at a minimum. Your insurer's loyalty discount might pale in comparison to another insurer's new customer discount and other perks.
Claims-free discounts
The way claims-free discounts are applied, like all other discounts, depends on your insurance company’s guidelines. Some will give the discount if you don’t file a claim for three years, for some 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
Yes, you do get a discount for having home security features. The amount of the discount 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 offered by most home insurance companies, 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 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 those who are single.
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 are then able to raise the coverage of your home in case of 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 employed in these professions.
How to lower home insurance without discounts?
You can lower home insurance costs by doing the following:
- Compare home insurance rates to make sure you’re getting the most affordable price
- Be sure you buy just the coverage you need with the right deductible
- Get all the home insurance discounts for which you qualify.
Insurance.com’s average homeowners insurance rates tool provides rates by ZIP code for 10 coverage levels. It also shows the highest and lowest rate fielded from up to six major insurers. The difference between those two shows how much you can potentially save by comparing home insurance rates.
Another easy way to decrease your homeowners insurance premiums is to raise your deductible. By simply increasing your homeowners insurance deductible from $500 to $1,000, you could save hundreds each year.
