Home insurance discounts for cheaper rates

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Homeowners insurance discounts are one of the easiest ways to save on homeowners insurance. With home insurance rates rising nationwide, it’s more important than ever to ensure you’re getting all the discounts you deserve. The national average for a home insurance policy is $2,601 per year, but discounts can save you up to 40%.

“There are discounts such as bundling of policies, or security systems. If you’re 55 years old (or older) and retired, or you modernize your plumbing or electrical systems, you may qualify for a price break, too,” says Loretta Worters, spokesperson for the Insurance Information Institute.

You may not qualify for all discounts, but making sure you get the ones you qualify for can keep your home insurance premiums low.

Key Takeaways

Homeowners insurance discounts can save you up to 40%
Discounts are available for security and construction upgrades to your home that reduce the risk of a claim.
Bundling your home and auto policies with one insurance company is one of the biggest ways to save on your premium.

20 common home insurance discounts

Below, we’ve listed 20 of the most common discounts and how much you could save. While not all of these are within your control (like the age of your home), some are for things you can easily do to reduce your rates.

Advanced purchase discount: 9%
Age of home discount: 11%
Automatic payment discount: 3%
Burglar alarm discount: 3%
Claims-free discount: 5%
Construction type discount: 7%
Deadbolt discount: 1%
Fire alarm discount: 3%
Fire extinguisher discount: 2%
Gated community discount: 4%
Roof discount: 5%
Loyalty discount: 6%
New home discount: 40%
Paid-in-full discount: 6%
Smoke detector discount: 2%
Sprinklers discount: 6%
Storm shutters discount: 1%
Upgrades discount: 6%
Water safety system discount: 3%

Homeowners insurance discounts on roofs

The age and condition of your roof are major factors an insurance company will look at when determining your rates. An older, worn roof is vulnerable to the elements. Putting in a new roof can earn you a significant discount, and if you choose to upgrade to a wind or hail-resistant roof, you could save even more.

Homeowners insurance discounts on security systems

Installing a burglar alarm can snag you an average discount of 3%, which doesn’t sound like much but is a savings of $78 a year based on the national average of $2,601 a year. Burglar alarms that contact a police station typically net a higher discount. Similarly, alarms linked to a central station, which is a central monitoring staff who will alert the police or the fire departments, on average offer a higher discount than ones that simply sound the alarm and don’t alert local authorities.

Homeowners insurance discounts for seniors

If you are a senior and retired, you might be home more. The majority of residential burglaries occur during the daytime. In turn, you would have more time to make repairs and keep your home in solid shape. Plus, you would most likely be able to keep a closer eye on potential problems, such as a water leak or fire.

The Hartford/AARP is one carrier that offers a discount for seniors and retirees.

Homeowners insurance loyalty discounts

Home insurance companies often reward customers who stick around with discounts ranging from 5% to 8%, depending on how long you have been a customer. While the savings are great, you might still save more by shopping around, so don’t hesitate to get quotes regularly from other companies.

Homeowners insurance paid-in-full discounts

If you’ve got the means to cover the annual bill in one payment for your homeowner’s insurance, it’ll get you a discount. You can easily get this discount if you pay your insurance bill through the escrow account on your mortgage.

How much can you save with home insurance discounts?

How much you save depends on which discounts you’re eligible for and how much of a discount you’re likely to receive depending on the insurance company. You can stack discounts, but most insurance companies have a cap on the total amount discounted.

You’ll likely find the biggest home insurance discount if you buy a newly built home. Insurers provide an average 40% discount to new homebuyers. You’ll also save by bundling your policies. Having the insurance company provide both home and auto insurance gets you an average savings of 18%. The third biggest way to save on your house insurance is linked to the construction type of your home. Fire-resistant or superior building materials get an average rate cut of about 11%. Masonry leads to an average 7% discount.

Discount category	Type	Average discount
Advance purchase	10+ days advance purchase	9%
Advance purchase	7 days advance purchase	8%
Age of home	5 years old	26%
Age of home	10 years old	13%
Age of home	15 years old	4%
Age of home	20 years old	2%
Automatic payments	Electronic fund transfer	3%
Bundle	Home and auto	18%
Bundle	Home and umbrella	4%
Bundle	Home and life	4%
Burglar alarm	Police department	4%
Burglar alarm	Central station	4%
Burglar alarm	Local	2%
Claims free	5 year claims free	5%
Claims free	10+ year claims free	5%
Construction type	Fire resistive	11%
Construction type	Superior	11%
Construction type	Masonry	7%
Construction type	Frame – to 66% masonry veneer	6%
Construction type	Frame – over 66% masonry veneer	6%
Construction type	Asbestos/stucco	4%
Construction type	Frame – to 33% masonry veneer	2%
Deadbolt	Deadbolt	1%
Fire alarm	Central station	4%
Fire alarm	Fire department	4%
Fire alarm	Local	2%
Fire extinguisher	Fire extinguisher	2%
Gated community	With patrol	4%
Gated community	Without patrol	3%
Electrical, plumbing, heating done at once or over a recent short period of time	Hail resistant roof	5%
Loyalty	10+ years renewal	8%
Loyalty	5 years renewal	6%
Loyalty	3 years renewal	5%
New home	New construction recently purchased	40%
Paid in full	Paid in full	6%
Smoke detector	Smoke detector	2%
Sprinklers	Sprinklers	6%
Storm shutter	Storm shutters	1%
Upgrades	Electrical, plumbing, heating done at once or over recent short period of time	13%
Upgrades	Roof upgrade	11%
Upgrades	Electrical upgrade	3%
Upgrades	Plumbing upgrade	2%
Upgrades	Heating upgrade	2%
Water safety system	Water leak detection – shut off and alarm	4%
Water safety system	Water leak detection – shut off	3%
Water safety system	Water leak detection – alarm	3%

Best homeowners insurance companies for home and auto bundling discounts

Among the top three biggest ways to save on your homeowners insurance premium, bundling your home and auto might be the easiest and the one you have the most control over. You can’t really change how old your home is or its construction type—at least not very easily. You most likely already have a car, and you don’t have to invest a small fortune in making upgrades.

Here’s a look at the average savings on a home and auto bundle with some of the top home insurance companies in the nation.

Company name	Home and auto rate before discount	Home and auto rate after discount	% Savings
State Farm	$4,144	$3,108	25%
Nationwide	$4,294	$3,349	22%
Allstate	$4,607	$3,778	18%
Farmers	$5,581	$4,576	18%
American Family	$4,202	$3,530	16%
Amica	$4,216	$3,584	15%
Auto-Owners	$3,713	$3,267	12%
Progressive	$5,191	$5,568	12%
Travelers	$5,288	$4,706	11%

How to save more on home insurance

Here are some tactics for saving more on home insurance premiums:

Bundle, bundle, bundle. You can save by bundling your auto and home insurance. Insurance companies might also offer savings if you bundle your home and life insurance or your home and umbrella policies.

Shop around. You can cancel or switch policies at any time. Compare rates from other home insurance companies regularly to see if you can find a better price.

Increase your deductible. To lower your premiums on any type of insurance policy, bump up your deductible. Just make sure you can afford to pay the deductible if necessary.

Build your credit. In most states, it’s legal for insurance companies to use your credit as a rating factor. Statistics show that people with poor credit file more claims, so improving your credit can lower your rates.

Maintain and repair your home. Keeping your house maintained prevents claims, keeping rates low.

Frequently asked questions about homeowners insurance discounts

Which insurance company has the cheapest home insurance?

Insure.com’s analysis of rates found that Amica has the cheapest home insurance rates among major carriers at $2,000 a year, $600 below the average. However, rates vary and the cheapest home insurance for you may be with a different company.

Do security cameras lower home insurance?

As a general rule, insurance companies offer discounts only for security systems that a security company monitors. So, security cameras that are part of a central alarm system may earn you a discount, but a Ring doorbell probably won’t.

Charlene Arsenault

Public Relations Associate

Charlene Arsenault is a seasoned journalist with more than 30 years experience in both print and online media, covering topics that range from human interest to arts and entertainment to hard news. Over the past decade or so, her efforts and concentration have shifted to the public relations sector, both as a PR associate for QuinStreet and as the founder and president of the animal welfare nonprofit Pet Rock Fest, Inc.