5 Ways to Save on Homeowners Insurance

Main takeaways

• Bundling home and auto insurance can lead to significant discounts, but it’s still important to compare individual coverage rates.

• Filing too many insurance claims can increase your premiums or even result in denied coverage.

• Your credit score impacts home insurance rates in most states, so maintaining good credit by paying bills on time can help lower premiums.

• Regularly shopping around after getting coverage can help you find better rates and save money.

Your home is likely your most valuable physical asset. So an insurance policy that protects against weather events or other damage is absolutely indispensable. 

But that peace of mind can come at a significant price. A 2025 analysis by the Consumer Federation of America found that homeowners with a $350,000 replacement value had to shell out an average of $3,303 per year on insurance.

The good news: Making a few simple moves can help deliver substantial savings. Here are five steps you should consider to keep your home insurance affordable. 

1. Bundle your coverage

Often, the same companies that offer insurance for your home also provide coverage for cars and trucks. Offering discounts on bundled policies is a way they try to get more revenue from each customer.

In some cases, those discounts can be substantial. For example, Nationwide claims you can save up to 20% when you combine home and auto insurance. And Allstate says you can shave up to 25% off your combined bill by bundling.

That doesn’t mean you’ll necessarily find the cheapest rate by sticking with a single insurer—it still makes sense to compare each type of coverage separately. But if you’re given the option to include an auto quote when you look for homeowners insurance, you might be glad you did.

2. Avoid filing too many claims

The whole point of home insurance is to ease the financial burden when there’s damage to your abode. But it’s a cruel reality that filing too many claims can lead to higher premiums in the future—or even getting denied coverage when it’s time to renew your policy.

And it’s not just your current insurer who knows about your claims history. All companies have access to a database called the Comprehensive Loss Underwriting Exchange. Your C.L.U.E. report shows your claims for the past seven years. In general, the more times you’ve tried to get reimbursement from your insurer, the more financial risk they attribute to you. That means higher premiums.

Of course, if there’s significant damage to your property, contacting your insurance agent or broker might be a no-brainer. But paying for smaller repairs out of pocket, while more costly in the short-term, could end up saving you in the form of lower rates going forward.

3. Watch your credit score

You may think of a credit score primarily as a tool that banks use when evaluating a loan application. But many insurance companies also use it, equating a low score with a greater likelihood that you’ll file a claim.

A few states either ban or limit the use of credit scores in the underwriting process, including California, Hawaii, Maryland and Massachusetts. Anywhere else, it’s a distinct possibility that your insurer will take a look.

Scoring agencies like FICO use a slightly different formula to determine credit-based insurance scores and credit-based lending scores. But with either one, your payment history and outstanding balances are important factors. So if you’re in the market for homeowners insurance, paying your bills on time and reducing your loan amounts as much as possible might just result in a better rate.

4. Go for a higher deductible

Opting for a higher deductible—the amount you pay for damage before getting any reimbursement—is a guaranteed way to lower your premium. Insurance companies reward this choice since it reduces the risk that they’ll have to make frequent small payouts. While it means you'll pay more out-of-pocket if something happens, the monthly savings on your premium might be worth it over time.

5. Keep shopping around, even after you get coverage

Once you have an insurance policy in place, don’t feel like you have to stay put forever. You may find that other carriers can offer you a better rate, especially if you don’t have any recent claims with your current provider. You can reach out to companies directly or get in touch with a broker who can help you compare quotes from multiple insurers. Just make sure the company you go with has a solid reputation and a strong financial ratings.

The  upshot

Homeowners insurance is essential, but you don’t have to overpay for it. By bundling policies, keeping your claims history clean and regularly comparing quotes, you can keep more money in your pocket while still protecting your home. A little effort now could translate into hundreds of dollars in annual savings—and some well-deserved peace of mind.