Homeowners insurance discounts and savings

Insurance companies offer policyholders several ways to save on homeowners insurance, including discounts for bundling your home and auto policies or making your home safer.

Pat Howard 1600Kara McGinley


Pat Howard

Pat Howard

Senior Editor & Licensed Home Insurance Expert

Pat Howard is a senior editor and licensed home insurance agent at Policygenius, where he specializes in homeowners insurance. His work and expertise has been featured in MarketWatch, Real Simple, Fox Business, VentureBeat, This Old House, Investopedia, Fatherly, Lifehacker, Better Homes & Garden, Property Casualty 360, and elsewhere.

&Kara McGinley

Kara McGinley

Editor & Licensed Home Insurance Expert

Kara McGinley is an editor and licensed home insurance expert at Policygenius, where she writes about homeowners and renters insurance. As a journalist and as an insurance expert, her work and insights have been featured in Kiplinger, Lifehacker, MSN, WRAL.com, and elsewhere.

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Homeowners insurance covers your most important assets, including your house and all of your valuables — and because of that, it can be a rather expensive form of financial protection, but it doesn’t have to be. If you feel that you’re paying too much for home insurance, there are a few ways you can lower your rates, including re-shopping your homeowners insurance annually and taking advantage of discounts and savings offered by your insurance company.

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Each insurance company offers their own discounts, and the amount you can save by, say, owning a newly constructed home or bundling your home and auto insurance will vary from company to company. Discount availability with certain carriers may also differ from state-to-state.

Key takeaways

  • Many insurers offer discounts that can lower your premiums, including discounts for bundling, not filing claims, and paying your premiums for the year up front

  • You may also see lower rates if your home is newly constructed, or if you fortify your home with security systems and protective devices like fire alarms and sprinklers

  • You should re-shop your homeowners insurance annually to make sure you aren’t missing out on better deals for coverage

12 common homeowners insurance discounts 

Insurance companies will reward you with discounts depending on details related to you and your policy as well as your home. Be sure to check with your insurance company to see what discounts are available in your state.

Some of the most common homeowners insurance discounts include:

1. Home and auto bundling discount

If you take out two or more insurance policies from the same company, your insurer may reward you with a bundling, or multi-policy discount. You’ll also have the added advantage of only having to deal with one insurance company for all your property insurance needs.

Bundling discounts generally offer the most impactful savings opportunities for homeowners. Policygenius customers save an average of 30% by combining their home and auto insurance under a single carrier.

2. Paid in full discount

If you pay a year’s worth of insurance premiums up front, your insurer will typically reward you with a small discount.

3. Claims-free discount

If you’ve gone a number of years without submitting a homeowners insurance claim, your insurance company will reward you with a discount on your rates, usually called a claims-free or a no claims discount.

4. HOA discount

Homeowners associations are looked at favorably by insurance companies, as HOA property is generally surveilled and well-maintained, lessening the risk of theft and vandalism. Because of that, insurers will typically hook you up with lower premiums if you belong to an HOA.

5. Loyalty discount

If you’ve been using the same insurance company for five or more years, most insurers will give you a discount on future policies. While loyalty discounts are nice, you should continue to compare policies annually and make sure your home has the best possible coverage.

At Policygenius, we make it easier to compare and buy homeowners insurance online, and our licensed representatives can help steer you toward a policy that makes sense for you and your home.

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6. Military or other affiliation discounts

Many homeowners insurance companies offer military discounts for veterans and active-duty personnel. There are also a few insurers, like USAA and Armed Forces Insurance (AFI), that cater exclusively to veterans, military members, and their family.

Insurance companies may also offer you a discount if they partner with a specific organization that you are a member of, or if you work a certain occupation. Contact your insurance company to learn which organizations and groups they offer affiliation discounts to.  

7. Retiree discount

If you’re retired, some homeowners insurance companies may offer you a discount. Retirees likely spend more time at home, which means there’s less risk of break-ins and for sustained damage from covered losses like a pipe leak or fire.

8. New home construction discount

A newly constructed home means new wiring, new plumbing, a finished basement, and a new roof. New homes are also generally cheaper to rebuild than older homes with obsolete features. If the insured property was built in the last five years, chances are your insurer will give you a discount on your premiums.

9. Protective devices discount

You’re typically eligible for discounts if your home has a centralized fire alarm, security monitoring, or fire sprinklers. Be sure to let your insurance company know about any safety or security features in your home, and if you recently had a protective feature installed, let your agent know immediately to get a discount on your premiums.

Here is the average discounts for homes with deadbolts, smoke alarms, and burglar alarms, according to a Policygenius analysis of 2022 Quadrant data.

Discount% savings
Smoke alarm0.4%
Burglar alarm3%

10. Fortified home discount

Fitting your home with storm-proof roof shingles, hurricane-resistant windows, impact-resistant garage doors, and steel doors and frames may net you a considerably large discount.

11. Smart home discount

Home insurance companies may offer you a discount if you install smart home devices in your home. Things like smart locks, leak sensors, and gas leak sensors may all result in a discount. Some insurers, like Travelers, even offer affiliate discounts for smart home devices bought through Amazon.

12. No-mortgage discount

Some insurance companies may offer you a discount if you paid for your home fully without a loan because it signals to insurers that you are financially well off. If you own your home outright, insurance companies consider you to have a greater incentive in protecting your property than someone who only owns a percentage of their home.

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How to get discounts on homeowners insurance

The first thing to understand about homeowners insurance discounts is that you don’t really “apply” for them. If your home meets certain criteria, or you bundle multiple policies through the same insurer, those discounts and credits will be automatically factored into your insurance premium when you get a quote and your policy goes in force.

Discounts can be specific to you and your policy, such as bundling, paying your premiums for the year in full, or paperless billing; or specific to your home, like protective devices and fortified home discounts for having a security system or hail-resistant roof.

If you recently installed a new roof or added a centralized security monitoring or fire alarm to your home, you don’t have to wait until renewal to let your insurance company know. If you’ve made improvements to your property, or plan to, communicate that to your insurer and get rewarded with lower rates.

Other ways to save on homeowners insurance

If discounts aren’t cutting it, there are a few other things that can lower your home insurance premiums, including: 

  • Re-shopping home insurance annually: It’s recommended that you re-shop your insurance annually to make sure you’re not missing out on a better deal elsewhere, even if your rates haven’t gone up. In fact, re-shopping home and auto insurance saves Policygenius customers an average of $690 a year. 

  • Raising your deductible: If you raise your deductible, that will lower your premiums. However, don’t raise it to an amount that you won’t be able to afford in the event of a claim. 

  • Maintaining a good credit score: Insurers take your credit into consideration when calculating your rates. Maintaining a good credit score is a way to keep homeowners insurance costs down. 

  • Being a non-smoker: Many insurers offer a non-smoker discount. If you recently quit smoking, you should notify your homeowners insurance company. 

  • Living in a gated community: Gated communities provide more security measures, which may result in lower insurance costs.

  • Removing knob or tube wiring: If you live in an older home, updating your home’s wiring or outdated materials can lower your rates.