It’s not your imagination—home insurance rates have risen and are expected to keep rising. Contributing factors include climate-related disasters, inflation driving up construction costs, and higher reinsurance expenses. Homeowners are turning to money-saving tactics like bundling policies, upgrading security, and shopping around.
Home insurance premiums have gone up in 95 percent of zip codes, a recent Consumer Federation of America report notes. Almost all homeowners have seen a rate increase, with premiums in some areas increasing by over 30 percent.
Offsetting even a portion of these price increases has the potential to put hundreds of dollars back in your pocket.
Lower Your Home Insurance Premium in 9 Steps
The good news is there are proven ways to help reduce home insurance rates without sacrificing coverage:
1. Shop around annually
The single most effective way to lower your home insurance rates is to shop around. Rates for identical coverage can vary between insurers—meaning, you might save hundreds just by switching providers. The ideal time to compare rates is 30 to 60 days before your policy renewal, which typically occurs annually on the same date you first purchased.
What makes Cornerstone Insurance Agency different? We’re known for our personalized service, competitive rates from multiple carriers, and long-term client relationships. Shop rates now.
2. Bundle your policies
Bundling your home and auto insurance with the same provider can offer savings, with estimates from the Insurance Information Institute* ranging from 5 to 15 percent. For a homeowner spending $3,500 a year on insurance, this translates to $525 in annual savings. You can often bundle additional policies like boat, motorcycle, or umbrella insurance for even greater discounts.
3. Increase your deductible strategically
Raising your deductible is one of the fastest ways to reduce your premium. Increasing your deductible from $500 to $1,000 might drop your premium by up to 25 percent.* The only catch? Just make sure you have enough in your emergency fund to cover the out-of-pocket expense if you need to file a claim.
4. Pay annually instead of monthly
While it requires more upfront cash, paying your entire premium at once can save more than paying monthly installments. Many insurers charge processing fees for monthly payments, so eliminating those fees plus earning a small discount for annual payment can yield savings over time.
5. Install a security system
Home security systems, smoke detectors, and safety devices can earn you discounts while protecting your property. Discounts may range from 15 to 20 percent, depending on the complexity of the system.*
Qualifying safety features may include:
- Monitored burglar alarms
- Fire sprinkler systems
- Smoke and fire detectors
- Smart home devices (water sensors, smart locks, cameras)
- Deadbolt locks on all exterior doors
Even basic improvements like installing deadbolts and smoke detectors can provide small but steady savings that add up.
6. Ask for a discount
Be the squeaky wheel by asking for a lower price. Many insurers offer discounts for being claim-free for several years, being a senior citizen or veteran, holding membership in professional organizations, maintaining loyalty, choosing paperless billing, being a non-smoker, and more. Always ask your agent about any discounts you might be missing.
7. Maintain your credit
In most states, insurers use credit-based insurance scores to determine premiums. Someone with poor credit will pay more for homeowners insurance than someone with good credit. Paying bills on time and keeping credit utilization low are simple-yet-effective ways to help you qualify for better insurance—and mortgage interest—rates.
8. Remove or modify high-risk features
Insurers may increase premiums for “attractive nuisances” and high-risk features.
Removing or changing these features may net you a discount:
- Trampolines and playground equipment
- Above-ground pools without proper fencing
- Certain dog breeds considered high-risk
- Wood-burning stoves or fireplaces (instead of gas or electric)
- Older heating systems
Proactively addressing these features may not only qualify you for lower home insurance rates—but it could also boost the safety and value of your home. Make sure to get in touch with your agent after making any changes.
9. Consider your next home’s location
While you can’t change your current home’s location, you can be mindful the next time you move. Homes within 5 miles of a fire department often qualify for lower rates, whereas gated communities typically receive security discounts. Low-crime neighborhoods can also earn you a discount due to a reduced theft risk.
A Quick Review Now Could Save You Later
If you already rely on Cornerstone for mortgage and banking, why not insurance? Visit Cornerstone Insurance Agency to compare quotes from hundreds of top insurance carriers in all 50 states.
Sources deemed reliable but not guaranteed. For educational purposes only.