The best homeowners insurance discounts

These are the best home insurance discounts in terms of savings:

  • 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.

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 resistive11%
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%
Claims Free5-year claims free5%
Claims Free10+ year claims free5%
Hail Resistant 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%

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 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 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 by company.

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, learn more about insurance for new homeowners. The average new home discount is 40%, 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.

New homeowners discounts
Company% savings
ASI Lloyds74%
California Automobile Insurance Company62%
Peoples Trust61%
CSAA Insurance Group58%
Security First57%
American Strategic Ins. (ASI)57%
Georgia Farm Bureau55%
American Family55%
Federated National54%
Auto Club Group53%
Cincinnati Insurance52%
State Farm51%
Hawaiian Insurance & Guaranty51%
State Auto47%
St Johns46%
New York Central Mutual (NYCM)45%
United Farm Family45%
Memberselect (AAA)45%
Virginia Farm Bureau44%
Nodak Mutual43%
New Jersey Manufacturers (NJM)43%
American Commerce (MAPFRE)42%
Farm Bureau42%
Fidelity Ins.41%
Automobile Ins. Co. of Hartford (Travelers)41%
Century Ins.41%

Home and auto bundle discount

Based on’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.

Home and auto bundle discount
Company% savings
United Farm Family33%
State Farm33%
CSAA Fire & Casualty30%
Massachusetts Bay29%
State Farm28%
Citizens Ins.27%
New York Central Mutual (NYCM)27%
CSAA Insurance Group26%
Shelter Mutual25%
Oklahoma Farm Bureau25%
Farm Bureau of Arkansas24%
Memberselect (AAA)24%
Auto Club Family24%
Pennsylvania National23%
Safety Insurance23%
Country Mutual23%
Farm Bureau22%
Automobile Insurance Company of Hartford22%
Virginia Farm Bureau22%
Automobile Club of Southern California22%
Allied Ins.21%
Fire Insurance Exchange (Farmers)20%
Patriot Insurance20%
Milbank Insurance19%
American Family19%
Cincinnati Insurance19%
Kentucky Farm Bureau19%

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.

Best roof upgrade discount
Company% savings
Auto Club Group30%
Cincinnati Insurance28%
American Family25%
Texas Farmers25%
CSAA Insurance Group20%
Memberselect (AAA)20%
Citizens Ins.19%
Farmers P&C15%
Country Financial13%
Homesite 13%
Fire Ins. Exchange (Farmers)13%
ASI Lloyds12%
State Auto12%

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 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

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.