Explore some common discounts for homeowners insurance and let the savings roll in.
If you’ve just spent your savings on a down payment to become a newly minted homeowner, you’re probably eager to regain some financial footing. Getting homeowners insurance to cover your new asset is essential to protect your investment — but it need not cost an arm and a leg. In addition to shopping around for insurance quotes to find the best rate, you should inquire about discounts you can qualify for to lower your premium even further.
We’ll review some common home insurance discounts offered by top insurance companies so you know exactly what to ask about when you’re about to finalize your homeowners insurance policy. Keep in mind that some of these discounts may not be available in your state.
Every insurance company is different, but some policy- and policyholder-specific discounts for home insurance include:
This is one of the most common home insurance discounts. You can save quite a bit on home insurance by bundling policies from the same insurer — plus, it’s convenient to pay a single company rather than dealing with multiple carriers. Whether you bundle home and auto insurance, home and motorcycle, or RV insurance and home, a bundling discount may be applicable.
| Bundle | $ Savings |
| Renters and auto | $79 |
| Condo and auto | $129 |
| Homeowners and auto | $148 |
Popular insurance companies that offer bundling discounts: GEICO, USAA, American Family, Allstate, Farmers, State Farm, Nationwide, Progressive, Liberty Mutual, Esurance, Safeco, Erie, MetLife, The Hartford, Amica and Travelers.
You may be eligible for a discount if you’re either a first-time home-buyer or you purchase a newly constructed home. How new the house must be to qualify varies from company to company, and can range from within one year to 10 years.
| Age of Home | Average Premium | $ Savings |
|---|---|---|
| New construction | $889 | $486 |
| 10-30 Years | $1,375 | - |
Get a new home insurance discount from the following insurance companies: USAA, American Family, Allstate, Nationwide, Progressive, Liberty Mutual, Esurance, Safeco, The Hartford, Amica and Travelers.
If you’ve been a claims-free customer with the same company for a few years, you might be eligible for a loyalty discount on your homeowners insurance policy.
Top insurers offering loyalty discounts on home insurance include: American Family, Allstate, Esurance and Amica.
You can receive a small discount for paying your insurance premium in full for the policy period, setting up automatic payments, making payments via electronic funds transfer (EFT) or subscribing to paperless account management.
Insurance companies that offer payment method discounts: American Family, Allstate, Progressive, Liberty Mutual, Safeco and Amica.
Remaining claims-free translates to less perceived risk to insurance companies, and they may reward you for being conservative with your claims and a clean record with a discount.
| Average Rate w/ Claims | Average Rate w/ No Claims | $ Savings |
|---|---|---|
| $1,476 | $1,256 | $220 |
Top insurance companies offering good-client homeowners discounts include USAA, Allstate, State Farm, Nationwide, Liberty Mutual, Esurance, The Hartford, Amica and Travelers.
Insurers consider retired folks over the age of 55 as less risky because they typically spend more time at home — which, in turn, gives them more time to respond to or mitigate potential risks. For example, a senior retiree is more likely to have time to call a plumber for an immediate fix rather than letting it turn into a serious, more expensive repair with which an insurance company would need to get involved to help cover.
Get a senior discount from these top insurance companies: Allstate, Liberty Mutual and The Hartford.
Homes that are gated or have HOAs overlooking the neighborhood are generally considered safer than homes without.
Insurers offering this discount: Nationwide.
Though less common than some of the above discounts, some insurance companies will give a discount to people who work in certain occupations. The most common career-based homeowners insurance discount is for active military members, but some companies also give discounts for teachers and first responders.
Career-related discounts are offered by insurers such as Farmers, Liberty Mutual and MetLife.
Making structural improvements, undertaking home renovations or adding safety features to your home will work in your favor if you’re looking for home insurance discounts. Keeping up with the maintenance of your home is viewed favorably by home insurance companies since it improves its longevity — making it less likely they’ll have to make a claims payout. Making some of the following home improvements may be rewarded with a discount or lowered rate.
Roofing is expensive and costly to repair. If you take steps to use better materials to make your roof hail- and impact-resistant, your insurer may give you a discount. In fact, insurers in Oklahoma are required to offer a discount if your roof meets or exceeds the quality standards set by FORTIFIED.
| Wood | Metal, Slate or Asphalt | $ Savings |
|---|---|---|
| $1,322 | $1,219 | $103 |
Top insurers offering discounts for roof updates include Allstate, State Farm, Nationwide, Liberty Mutual and Esurance.
Home security systems allow a much faster response time if your home is trespassed upon or burgled. Having any sort of burglar alarm system is always a good idea for your home’s security — and depending on your specific insurer, they may reward even basic security measures like deadbolts. Some offer discounts for smart home security devices, as well.
Insurance companies with home security discounts include GEICO, USAA, American Family, Allstate, Farmers, State Farm, Nationwide, Progressive, Liberty Mutual, Esurance, Erie, MetLife, The Hartford, Amica and Travelers.
While most local municipalities mandate at least one smoke detector in each home, installing more than one fire alarm — especially if your home is large and/or a two-story residence — is a good safeguard for detecting fires as soon as they start. In addition, installing sprinklers and having fire extinguishers around are also beneficial preventive measures that insurance companies will recognize with a lower rate or discount.
Get a fire prevention discount from the following popular insurers: GEICO, Farmers, State Farm, Nationwide, Progressive, Liberty Mutual, Esurance, Erie, MetLife, The Hartford and Travelers.
Being a non-smoker or maintaining a smoke-free household leads to less risk of fire or smoke damage.
Insurers that provide smoke-free discounts include Allstate, Farmers and Esurance.
Typically installed in homes in locations vulnerable to hurricanes, having hurricane shutters on your windows can help mitigate some of the damage — namely, they prevent windows from shattering due to wind and flying objects.
A discount for installing storm shutters is available through Allstate and Esurance.
The Internet of Things (IoT) is poised to change how our homes operate. Connected homes are increasingly offering insurance customers new ways to protect their property. These changes could lead to a discount on what you pay for home insurance, as well as discounts or rebates on the technology itself. Smart home technology is increasingly being used to automate elements of your home, including your thermostat, home security system and even sensors that can detect water leaks to prevent extensive water damage. Smart locks, video doorbells, Wi-Fi-connected smoke alarms and carbon monoxide detectors are other great options that insurance providers like to see.
Because smart home products are relatively new and the technology is still evolving, not every carrier will offer such savings, but the following insurers offer some form of insurance discount for smart home technology:
Keep in mind that this field will change a great deal as more companies move into the insurtech space. Expect insurance carriers to continue to develop new technology and to seek out new opportunities to provide a better customer experience.
You might have noticed the common theme among these popular home insurance discounts — each factor for which discounts are given affects how your insurance company sees your risk profile. The insurance company's primary concern is the risk their customers represent, as it directly affects their bottom line. If you demonstrate an effort to lessen that risk in any way, reducing the likelihood of your filing a claim, insurers may recognize this effort with cheaper rates, by way of discounts. To save the most money on homeowners insurance, take steps to ensure your home is as safe as possible.
