5 ways for new homeowners to save on homeowners insurance


Robyn Parets

Robyn Parets

Blog author Robyn Parets

Robyn Parets is a personal finance and business writer based in Boston. A former writer for Investor's Business Daily (IBD) and NerdWallet, Robyn is also the founder and owner of Pretzel Kids, a children's fitness brand and online training course. You can find her on Twitter @RobynParets.

Published September 16, 2016|2 min read

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If you’re a new homeowner, get ready for new expenses coming your way, including property taxes, repairs and maintenance, and, most importantly, homeowners insurance.

As a homeowner, insurance is imperative. Not only do most mortgage companies require it, but a solid policy will pay to rebuild or repair your house in the event of some disasters, such as a fire or water damage from a burst water heater. It will also pay to replace your belongings if your house is robbed.

This peace of mind comes at a price. In fact, it will cost you an average of about $1,100 a year. At the same time, there are many discounts available. To help you find the best rate, check out our top ways to save on homeowners insurance as a new homeowner:

1. New homeowner or new customer discount

As a new homeowner, be sure to ask insurers what they can offer you in terms of savings. Many insurers offer discounts if you’ve recently purchased a house, and some offer savings for both new home buyers and new customers purchasing homeowners insurance.

2. Bundle your homeowners and car insurance policies

Many insurance companies offer discounts if you purchase both your auto and homeowners insurance in a bundled package. If you already have car insurance, you can start by calling your auto insurance company to see what kind of bundled deal it can offer you. From there, you can shop around and compare prices. This may mean switching your auto insurance to another provider, but if you can save money on both types of insurance, it may be worth it.

3. Secure your home

While you’ve got many other new expenses on your plate, home security – including alarm systems, deadbolts on your doors and smoke detectors – may offer a heightened sense of safety while also saving you money on your homeowners insurance.

4. Choose a higher deductible

A deductible is the amount you’re required to pay before your insurance company will pay out on a claim. For example, if your deductible is $1,500, this is the amount you would first need to pay before your insurance covers the rest of the costs. Oftentimes, a higher deductible means you’ll pay a lower premium and thus lower monthly payments. While this may save you money each month, keep in mind that a high deductible mean you’ll pay more out of pocket if you suffer a loss.

5. Search for less common discounts

While you may have already heard of some of the above savings, here are some less common discounts that might be worth looking into:

  1. Automatic payment discount. Some insurance companies will offer savings if you pay via automatic deductions from your bank account.

  2. Personal relationship status discount. If you’re married or widowed you can save up to 5% off your insurance policy at Nationwide.

  3. Environmental discount. If your house is certified green by the Leadership Energy and Environmental Design organization (LEED), you may get a discount.

  4. Non-smoking discount. If no one in your household smokes, you may be entitled to a smoke-free discount. Why? Because smoking can cause thousands of dollars in fire and smoke damage and thus non-smokers are less of a risk to insure.

As you can see, there are many homeowners insurance discounts out there. In some cases, these savings vary depending on which state you live in, the age of your home, and other specific factors related to your particular house. It’s best to shop around and call various insurance companies before choosing your policy.