The average homeowners insurance policy costs $2,285 per year in 2026 — but many homeowners pay significantly more than they need to. Whether you are buying your first policy or renewing an existing one, these strategies can reduce your premium without leaving you underinsured.
8 Ways to Find Cheap Homeowners Insurance
1. Compare Quotes from Multiple Insurers
This is the single most effective action. Rates for identical coverage on the same home can vary 30–50% between insurers. Insurance companies use different risk models and target different customer profiles — a company that is expensive for one home may be cheap for another.
How to compare effectively:
- Get at least three quotes with identical coverage limits and deductibles
- Check both national carriers and regional insurers (regional companies often have lower overhead)
- Use an independent insurance agent who can quote multiple carriers at once
- Compare at renewal — do not assume your current insurer is still competitive
2. Bundle Home and Auto Insurance
Insuring your home and car with the same company is the easiest discount most homeowners can apply. Multi-policy discounts typically run 5–25%, and applying the savings to both policies means the total benefit can be $400–$800/year for the average household.
Before bundling, verify the bundled rates still beat competitors. Sometimes two separate best-in-class policies cost less than a bundled arrangement with a single insurer. See bundle home and auto insurance for details.
3. Raise Your Deductible
| Deductible | Estimated Annual Savings vs. $500 |
|---|---|
| $500 (baseline) | — |
| $1,000 | ~10–15% (~$230–$340/yr) |
| $1,500 | ~15–20% (~$340–$460/yr) |
| $2,500 | ~20–30% (~$460–$685/yr) |
The tradeoff: you pay more out of pocket on a claim. Only raise your deductible to an amount you could genuinely cover from savings. Keep the difference in a dedicated emergency fund — if you save $350/year by switching to a $1,500 deductible, you accumulate your full deductible buffer in about 4.5 years.
4. Improve Your Home’s Safety Features
Insurers discount homes that are less likely to generate claims. Common discounts:
- Monitored burglar alarm — 5–15% discount at most insurers
- Smoke detectors and sprinkler system — 5–10%
- Deadbolt locks — 2–5%
- New or impact-resistant roof — 5–30% in wind-prone states; removes age surcharges
- Storm shutters or reinforced doors — significant discounts in coastal areas
Upgrading an aging roof is the highest-ROI improvement in most markets. A new roof can pay for part of its own cost in reduced premiums over 10–15 years, in addition to reducing claim risk and improving home value.
5. Maintain a Clean Claims History
Every claim you file goes on your CLUE (Comprehensive Loss Underwriting Exchange) record for five years. Two or more claims in three years can trigger a premium surcharge or non-renewal notice from some carriers.
Practical strategy: Use insurance for genuine catastrophic losses — the purpose it was designed for. For minor damage under $2,000–$3,000, pay out of pocket to protect your claims record and your rate at renewal.
6. Improve Your Credit Score
In most states, insurers use a credit-based insurance score (distinct from your FICO score) to set premiums. Poor credit can raise homeowners premiums by 30–60% compared to excellent credit. California, Maryland, and Massachusetts prohibit this practice.
If you are working to improve your credit, each tier improvement can meaningfully lower your next renewal rate. See homeowners insurance cost for detail on how each rating factor works.
7. Ask About All Available Discounts
Many discounts are not automatically applied — you have to ask. Common ones beyond bundling:
- New home discount — homes under 5–10 years old often qualify
- New homebuyer discount — first-time buyers get introductory rates at some carriers
- Claims-free discount — rewarded for years without a claim
- Military and veteran discounts — USAA (veterans only), plus discounts at many standard carriers
- Senior discount — retirees who spend more time at home qualify at some carriers
- Paperless / autopay — small but free discount at most carriers
8. Review and Right-Size Your Coverage
Over-insuring is common. Make sure you are not paying for more dwelling coverage than it would actually cost to rebuild your home — not its market value, which includes land. Also review:
- Personal property coverage — the default 50–70% of dwelling limit may exceed what you actually own; reducing it saves premium
- Riders and endorsements — cancel any scheduled items (jewelry, art) you no longer own
- Liability limits — most homeowners need $300,000–$500,000; rarely worth going higher unless you have significant assets
Cheapest States for Homeowners Insurance
| State | Average Annual Premium |
|---|---|
| Hawaii | $582 |
| Vermont | $1,187 |
| Wisconsin | $1,422 |
| Delaware | $1,498 |
| Pennsylvania | $1,608 |
| New Hampshire | $1,621 |
| National Average | $2,285 |
What NOT to Skimp On
Finding a cheaper policy is valuable — but some cuts are not worth making:
- Do not drop liability coverage — the liability portion of your policy is what protects you if someone is injured on your property. $100,000 in liability coverage is not enough; carry at least $300,000 and consider an umbrella policy if you have significant assets.
- Do not insure for market value instead of replacement cost — if you set your dwelling limit too low, you will be underinsured if you have to rebuild.
- Do not skip flood insurance in a flood zone — standard policies do not cover flooding. See flood insurance cost for what a separate policy runs.
Related: homeowners insurance cost · best home insurance companies · homeowners insurance guide · average home insurance by state · bundle home and auto insurance · replacement cost vs. actual cash value
The content on Wealthvieu is for informational purposes only and should not be considered financial, tax, or investment advice. Consult a qualified professional before making financial decisions. Full disclaimer · Editorial policy