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Home insurance companies offer a variety of discounts to lower your home insurance rates. They include discounts for things you can't control, like the age of your home, and for things you can control: installing safety features like a burglar alarm or risk-reducing upgrades to your home like storm shutters or a hail-resistant roof. 

There are also discounts for being a loyal customer and for bundling your home and auto insurance with the same company.

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.

Key takeaways:

  • Many home insurance discounts are related to reducing risk in and around your home.
  • Not all discounts are offered by every company or in every state, so be sure to ask.
  • Bundling auto and home is often the largest available discount.
KEY TAKEAWAYS
  • 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 10 types of home insurance discounts that reduce rates the most:

  • 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.

Homeowners Insurance Discounts
DiscountsTypeAverage discount
New HomeNew Construction40%
Age of home5 years or less26%
BundleHome And Auto18%
UpgradesElectrical, plumbing, heating and other major systems13%
Age of home10 Years Old13%
Construction typeFire resistant11%
Construction typeSuperior11%
UpgradesRoof Upgrade11%
Advance Purchase10+ Days Advance Purchase9%
Advance Purchase7 Days Advance Purchase8%
Loyalty10+ Years Renewal8%
Construction typeMasonry7%
Construction typeFrame - To 66% Masonry Veneer6%
Construction typeFrame - Over 66% Masonry Veneer6%
Paid in FullPaid in Full6%
Loyalty5 Years Renewal6%
SprinklersSprinklers6%
Claims Free5 Year Claims Free5%
Claims Free10+ Year Claims Free5%
Hail Resitant RoofHail Resistant Roof5%
Loyalty3 Years Renewal5%
Construction typeAsbestos/Stucco4%
Fire AlarmCentral Station4%
Fire AlarmFire Department4%
Gated CommunityWith Patrol4%
BundleHome and Umbrella4%
BundleHome and Life4%
Burglar AlarmPolice Department4%
Burglar AlarmCentral Station4%
Age of home15 years or less4%
Water Safety SystemWater Leak Detection - Shut Off And Alarm4%
Water Safety SystemWater Leak Detection - Shut Off3%
UpgradesElectrical Upgrade3%
Gated CommunityWithout Patrol3%
Water Safety SystemWater Leak Detection - Alarm3%
Automatic paymentsElectronic Fund Transfer3%
UpgradesPlumbing Upgrade2%
Construction typeFrame - To 33% Masonry Veneer2%
Burglar AlarmLocal2%
UpgradesHeating Upgrade2%
Fire AlarmLocal2%
Age of home20 Years Old2%
Smoke DetectorSmoke Detector2%
Fire ExtinguisherFire Extinguisher2%
Storm ShutterStorm Shutters1%
DeadboltDeadbolt1%

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:

New-Homeowners Discounts
Company% savings
Nationwide76%
ASI Lloyds74%
Citizens65%
Travelers63%
California Automobile Insurance Company62%
Peoples Trust61%
CSAA Insurance Group58%
Grange58%
Security First57%
American Strategic Ins. (ASI)57%
Georgia Farm Bureau55%
American Family55%
Garrison55%
Federated National54%
USAA54%
Auto Club Group53%
Alfa53%
Pemco53%
Cincinnati Insurance52%
State Farm51%
Depositors51%
Hawaiian Insurance & Guaranty51%
Erie51%
Allied50%
Allstate47%
State Auto47%
St Johns46%
New York Central Mutual (NYCM)45%
United Farm Family45%
Memberselect (AAA)45%
Virginia Farm Bureau44%
Lighthouse44%
Nodak Mutual43%
New Jersey Manufacturers (NJM)43%
American Commerce (MAPFRE)42%
Maison42%
Farm Bureau42%
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:

Home and Auto Bundle Discount
Company% savings
Nationwide39%
United Farm Family33%
State Farm33%
Grange33%
American31%
CSAA Fire & Casualty30%
Massachusetts Bay29%
Farmers28%
State Farm28%
Allstate27%
Citizens Ins.27%
New York Central Mutual (NYCM)27%
Preferred26%
CSAA Insurance Group26%
Travelers25%
Pemco25%
Shelter Mutual25%
Oklahoma Farm Bureau25%
Farm Bureau of Arkansas24%
Erie24%
Memberselect (AAA)24%
Auto Club Family24%
Grange24%
Pennsylvania National23%
Safety Insurance23%
Country Mutual23%
Arbella23%
Mid-Century23%
Farm Bureau22%
Automobile Insurance Company of Hartford22%
Alfa22%
Encompass22%
Virginia Farm Bureau22%
Automobile Club of Southern California22%
Allied Ins.21%
Amco21%
Fire Insurance Exchange (Farmers)20%
Amica20%
Patriot Insurance20%
Milbank Insurance19%
American Family19%
Cincinnati Insurance19%
Kentucky Farm Bureau19%

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.

Best Roof Upgrade Discount
Company% savings
Auto Club Group30%
Cincinnati Insurance28%
American Family25%
Texas Farmers25%
CSAA Insurance Group20%
Memberselect (AAA)20%
Grange20%
Travelers19%
Nationwide19%
Citizens Ins.19%
Farmers18%
Depositors17%
Palisades16%
Farmers P&C15%
Century14%
Country Financial13%
Homesite (Am. Family)13%
Fire Ins. Exchange (Farmers)13%
Garrison13%
USAA13%
ASI Lloyds12%
Acuity12%
State Auto12%

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 with multiple companies
  • Don't buy extra coverage you don't need
  • Raise your deductible

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.

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