More and more homeowners are looking for ways to save on their home insurance. Luckily, there are several ways you may be able to save. A few examples include comparison shopping for insurance, adjusting coverage and deductibles, and taking advantage of available discounts.

Many consider discounts the best method for saving on homeowners insurance because discounts are based on price, not coverage. This means you’re not sacrificing protection to save. The discounts are earned without adjusting coverage amounts or deductibles.

Even better? The steps you may take to qualify for discounts might also improve the safety, security, and even the value of your home.

In this article, we address the common home insurance discounts that may be available to you and how to qualify for them. We also look at other ways you can save on your homeowners insurance and how to reduce your expenses.

How do home insurance discounts work?

Home insurance premiums are often based in part on your insurer's risk evaluation of your home and the overhead costs of providing insurance.

When you take specific steps, such as minimizing your chance of filing a claim or reducing your insurer’s costs, your insurance company may pass a portion of these savings on to you.

Discounts help an insurer build a less risky pool of customers that are more affordable to manage. This allows you, the insured, to lower your home insurance cost without impacting coverage.

Common discounts for homeowners insurance

Homeowners insurance discounts range from modest to significant. Some are easy to qualify for, but others may take some effort or even an investment in improving your home.

Here are some typical discounts for homeowners insurance.

Home security discounts

Home insurance providers may also offer discounts for certain home security upgrades. These upgrades can make break-ins more difficult. In some cases, such as alarm systems, they can serve as a deterrent to burglaries.

Depending on your insurer, you may earn a discount for installing home security devices like:

• Burglar alarms.

• Security lighting.

• Deadbolt locks.

• Security glass in doors.

• Security cameras.

• Motion detectors.

Homes with improved security are less likely to sustain losses from theft and vandalism. This lowers the risk for the insurer and, in many cases, earns discounts for the insured.

Fire safety discounts

Like installing home security equipment, improving the fire safety of your home can reduce your risk of fire damage and often helps you save on your homeowners insurance.

Qualifying for a fire safety discount can be fairly easy. It’s often a matter of installing smoke detectors and fire alarms, having accessibility to fire extinguishers, or investing in a home security monitoring system. 

In addition to a fire safety discount, some homeowners have a lower rate based on their home’s fire resilience. For example, homes made of fire-resistant materials or close to a fire department often see lower rates.

Multipolicy discounts

One of the easiest ways to save on homeowners insurance is through multipolicy discounts that are available from many insurers. These discounts provide savings on insurance costs when a policyholder purchases more than one type of insurance from a single insurer, like bundling your home insurance bundled with car insurance, RV insurance, or life insurance.

Insurers like to give multipolicy discounts for several reasons. First, this marketing method provides customers with the coverage they need while also making it easier for them to manage their policies. Plus, bundling can also increase retention for insurers, as consumers are less prone to change providers when multiple policies are involved.

Consumers can benefit from the lower combined rates with an insurance bundle that includes homeowners insurance.

Loyalty discounts

Loyal customers are valuable for insurers, especially if the homeowner is timely with payments and claims are low, so many insurance companies offer discounts in hope of retaining policyholders.

The number of years you need to be insured and the amount off of your premium depends on your insurance company. Plus, not all insurers offer loyalty discounts. Check with your home insurance provider before switching insurers because you may lose a loyalty discount if you change insurance companies.

Payment method discount

You may be able to qualify for a discount on your homeowners insurance policy just by changing the way you pay. Generally speaking, home insurance companies may offer a discount if you:

• Pay your annual premiums upfront rather than monthly or quarterly.

• Sign up for an autopayment plan. 

• Pay via debit cards and escrow.

These options usually earn a discount because they generate lower processing costs and administrative fees for your insurance company.

Paperless statements discounts

Some insurers offer discounts for their customers who go “paperless,” eliminating mailed statements and invoices because it reduces administration costs. To promote this behavior, insurers may offer a discount to those who have their accounts maintained with electronic communication.

Claims-free discount

Insureds with few or no claims on their record may qualify for a claims-free discount. This is, in essence, a reward for what the insurer views as a terrific client with a low payout history.

New or renovated home discounts

New and renovated homes are usually built to meet modern building codes. Roofing may be reinforced, and wiring and plumbing is new or upgraded. For these reasons, insurers often see these homes as less risky to insure and may offer a discount. 

Savings on homeowners insurance for these homes may be significant. Even better? “New” doesn’t have to mean “brand new.” Many insurance companies have a range for what they consider new.

Green home discounts

Many insurers are using and promoting sustainability as a part of their marketing and brand positioning, often promoting green and environmentally friendly construction and home safety features. Some also provide discounts for smart features in a home and those with efficient HVAC systems and superior insulation.

Age or senior discounts

Some insurers have found that homes owned by seniors may be less risky to insure. This may be because seniors are more careful in general. They may be less likely to leave their property vacant or are more likely to have security systems or other safety features like handrails. Whatever the reason, seniors often see home insurance discounts.

The age that triggers these discounts varies depending on your insurance company, so be sure to ask your agent if you qualify.

Water leak detection and mitigation device discount

These devices are getting more affordable each day, and many water detection systems are smartphone-ready so you can get leak alerts anywhere. Some systems even have automatic water shut-offs. Because water damage can be costly, insurers are eager to reward homeowners who take measures to reduce or offset the chance of leaks.

Wind mitigation credits

Homeowners along the coast know how important a roof is! It can be the difference between your home being completely destroyed or staying intact during a hurricane, so insurance companies often offer discounts for mitigating your wind risk.

Qualifying for these credits typically depends on the laws in your state. For example, discounts are available for Florida homes, but the home must meet criteria based on its: 

• Roof covering.

• Roof-deck attachment.

• Roof-wall connection.

• Attachment opening protection.

• Roof shape.

• Secondary water resistance. 

But the criteria can be different in other states, like the home having:

• Storm shutters installed by a licensed contractor.

• An Insurance Institute for Business & Home Safety designation.

How to qualify for more home insurance savings and discounts

Improving your home through safety and security upgrades, system upgrades, and smart features can make it safer, more secure, and more comfortable while also adding to its value. These steps can also provide a path to more discounts.

There are, however, even more ways to save on your home insurance without sacrificing valuable coverage.

Improve your credit-based insurance score

Insurers discovered a correlation between insureds with good credit histories and lower risks. This extends to a variety of insurance products, including homeowners insurance. Improving your credit score may lead to lower home insurance premiums.

Practice risk mitigation

As we’ve mentioned, lowering your risk for property damage from weather or any other peril can earn you a claims-free discount. But even if your insurance company doesn’t offer one, you may see lower premiums in the long run simply because your home looks like a good risk.

Most of the things that mitigate your risk fall in line with maintaining your property. For example, trimming trees and branches away from your home can minimize the chance of falling branches or trees damaging your home. Keeping landscaping trimmed may lessen the risk of a fire spreading.

Homeowners with a house in flood-prone areas might consider raising their homes. Suppose your house is in a high-wind area. You may be able to improve it with stronger roofing. Find out which risk mitigation strategies may work best for you.

Comparison shop

One of the easiest ways to save on homeowners insurance is to comparison shop. Every insurance company has its own rules for determining premium, so you may find lower home insurance costs when you get quotes from multiple companies. Just be sure to consider policies with closely matching coverage, deductibles, and exclusions.

Online tools can help you evaluate ratings and reviews. You’ll only know if you’re overpaying for insurance if you compare.

Consider working with an insurance broker

An insurance broker is a third party who works on your behalf to help you secure insurance coverage on your home at a fair price. They often have access to multiple carriers, so they can help you compare. Plus, they have insurance industry experience, so they can usually identify issues and concerns you’ll want to address. 

Review your policy annually

A yearly review of your homeowners insurance is an opportunity to decide if your coverage is sufficient and current. It also helps check to see that you’re not paying for coverage you no longer need. A review may also uncover additional discounts that may be new or that you may now receive.

Common mistakes to avoid when seeking homeowners insurance discounts

Being overly aggressive when looking for home insurance savings may have disadvantages. The big one? Cutting your coverage to the point of being underinsured. You want to be sure you're covered for your home’s replacement cost so you can recover if the worst case scenario actually happens.

Another mistake people make is fudging information on their homeowners insurance application. Being less than truthful about your square footage or the safety features in your home may lead to a future claim denial or a policy cancellation. Be upfront and truthful with the information you provide on your homeowners insurance application.

Finally, people often err by ignoring the small stuff. Pay attention to simple steps like installing smoke detectors. These smaller savings add up.