Get Lower Premiums with These 14 Home Insurance Discounts

According to the Insurance Information Institute (III), the average annual homeowner's insurance premium in 2019 was $1,272.¹ That's more than $100 monthly, and enough to squeeze anyone's budget. 

You need the protection insurance provides, but you don't need to pay too much for the coverage. That's where discounts can help. Insurers routinely quote lower rates when you meet qualifications they associate with lower claims activity. 

Meeting those discount requirements benefits you in two ways. One, you pay less for insurance. And two, you probably lower your own risk of experiencing losses and insurance claims. Saving money and lowering risk at the same time is always a personal finance win. 

To that end, here are 14 homeowners insurance discounts to potentially request from your carrier.

1. New home construction discount

New homes are cheaper to insure than older ones. The difference in rates can be significant, too. PolicyGenius reports that new construction costs 13% less to insure than a 10-year-old home. The difference in premiums between a new home and a 20-year-old home is 23%.² 

Insurers see less risk in newer homes. This makes sense: A new home generally incorporates the most modern materials and latest building practices. As well, new electrical and plumbing systems are less likely to fail and cause catastrophic damage.

If you're shopping for a home today, consider the potential for lower insurance premiums on new construction. This might sway you to buy a newer home over an older one. 

2. Policy bundle discount

Bundling your home and auto insurance can lower your premiums by 15% per year, according to Insurance.com.³ 

Some insurers bundle policies entirely in-house. Allstate is an example. When you bundle with Allstate, you have the same carrier on both policies.  

Other providers, such as Progressive, partner with different companies to offer bundling discounts. Progressive will provide your auto coverage, but your homeowner's insurance provider might be Homesite or another company.  

Because there are multiple policies in play and insurers handle bundling deals differently, comparison shopping is critical. You may see one bundle offers the lowest auto premium but a higher rate on the homeowner's insurance, or vice versa. Compare your options on your cumulative cost to get the best deal. 

3. Upgrade or renovation discount 

On an older home, renovating can lower your insurance premiums. The savings can be as high as 13%, according to Insurance.com.⁴ The areas that will be most impactful to your rates are the roof and electrical, plumbing, and heating systems. 

If you're planning a major renovation, ask your insurer about discounts on hail-resistant roofing, systems upgrades, and water leak detection equipment. Ask specifically about the requirements for qualification and the documentation you'd need to provide. 

4. Advance quote discount 

The advance quote discount is among the easiest to get. You need only quote your rates a week or two before you want the coverage to begin. Planning ahead is a signal to insurance providers that you are mature and responsible. Your reward is a lower premium. 

5. Loyalty discount 

Loyalty discounts reward you for staying with the same insurer over time. Each carrier handles loyalty differently, but it's common to get a break on your premiums after five years and 10 years. 

Carriers do this to dissuade you from switching insurers for a cheaper rate. It's not always effective, however. Even if your carrier has a loyalty program, you're smart to comparison shop for rates annually. 

6. Claims-free discount 

You've probably experienced this with your auto insurance: Your rates are lower when you don't file claims often. This is another area that each carrier handles differently. One might reward you for three years without a claim, while another might give you a discount after five years claim-free.

Of course, you don't choose to have an emergency that results in an insurance claim. What you can do to minimize claims is weigh the cost of paying for smaller losses yourself. Sometimes it benefits you more to forgo the claim and avoid a potential rate increase. 

7. New homeowner's discount 

Some providers offer a discount if you're buying your first home. The idea here is to secure you as a customer when you first become a homeowner -- and then keep you around for as long as possible.  

8. Safety equipment discounts 

Insurance carriers love safety equipment. Things like fire detection systems, carbon monoxide sensors, fire extinguishers, deadbolts, and security alarms protect your home from damage and lower the risk for your provider. Depending on where you live, storm shutters or impact-resistant windows might also get you a discount. 

9. Smart home discounts 

According to BankRate, having smart home devices can save you up to 20% on your homeowner's insurance premiums.⁵ 

You're likely to see the biggest discounts with equipment that's built for safety. Devices like gas and water shutoff sensors, automatic interior sprinklers, and smart fire alarms are examples. 

10. Full payment, automatic payments, and going paperless 

Administrative efficiencies can earn you homeowners insurance discounts, too. When you pay your premium in full upfront, you spare your carrier the work of sending monthly bills and collecting them. According to Insurance.com, paying your premium upfront can reduce your rates by up to 6%.⁶ 

If you can't pay your premium in full, ask your carrier about discounts for setting up automatic payments. These are usually direct withdrawals from your checking account, but your carrier may take a credit card as well. 

Another option is to go paperless. Many carriers discount your rates if you agree to digital statements and documentation, delivered by email rather than snail mail. 

11. Senior, married, and nonsmoker discounts 

Some carriers reward you for being in a lower-risk demographic. With respect to homeowners insurance, those groups include seniors, married homeowners, and nonsmokers. 

12. Military discount 

NerdWallet reports that Farmers Insurance discounts rates by 2% to 8% for active, retired (honorably discharged), and reserve members of the military.⁷ 

Other providers, including USAA and Armed Forces Insurance, add free perks that service members need. An example is coverage on personal belongings if they're damaged by war, which is generally an exclusion with other carriers.⁸ 

13. Community discounts 

People who live in gated communities file fewer burglary claims. The same is true for those who live in communities with established neighborhood watch programs. 

If you live behind or gate or in a neighborhood with a security patrol, ask your insurer if you qualify for these discounts. 

14. Green home discount

Energy-efficient appliances and LEED (Leadership in Energy and Environmental Design Green Building Rating System) certification can also earn you a discount on your homeowner's insurance. 

According to The Balance, Travelers Insurance may lower your premium by up to 5% if your home is LEED-certified. Other carriers, including American Family Insurance, may also offer discounts for green equipment, like smart thermostats.⁹ 

How to get homeowners insurance discounts 

Every carrier offers a different set of discounts and has its own rules for qualification. To secure every discount available to you, ask each prospective insurer for discounts by name. You might say, "I have smart home devices and I live in a gated community. Do you offer discounts for these things? If so, how do I qualify?"

Take notes on the answers. Your notes help you compare carriers and also plan for future savings. Because getting the cheapest rate on your homeowner's insurance is a goal you will revisit every year, for as long as you own a home.