The best home insurance discounts for homeowners in 2024

What are the best homeowners insurance discounts?

The best home insurance discounts are the ones you qualify for that add up to significant savings. The good news is that most home insurance companies offer a broad array of discounts and most are pretty easy to obtain. There are three main types of homeowners insurance discounts: property-related, policy-related and policyholder-related. The majority of home insurance companies offer a combination of the three, but keep in mind that not all discounts will be available in all states. Exact savings will also depend on your home insurance company. 

Policy-related home insurance discounts

Multi-policy or bundling discounts

A multi-policy discount, also known as bundling, usually results in the most savings. Depending on your home insurance company, you could save as much as 25 percent for insuring your home and car with the same company. Bundles aren't limited to just home and auto, though; you may be able to score a discount by bundling home coverage with life, umbrella or another type of coverage. 

Early quote discount

If you get a home insurance quote before you need your policy to take effect, it could help lower your premium. For instance, if you get a quote today for a home you intend to close on in several weeks, you may qualify for savings. It can also apply if you are planning to switch carriers. 

Claims-free discounts

Having a clean claims history signals to your home insurance company that you are a lower-risk customer, which could net you extra savings. You can usually qualify for this discount if it's been three to five years since your last home insurance claim. The exact time frame will depend on your insurance company. 

Automatic payment and paperless statement discounts

Opting into automatic payments reduces the chance of missing a payment — something your home insurance company doesn't want to happen. Going the eco-route and choosing paperless policy statements could also result in savings. 

Loyalty discount

Sometimes, it can pay not to shop around. If you've been with the same home insurance company for a couple of years, you might earn a discount. But, if you're hit with a steep rate hike, don't be afraid to compare quotes or even switch companies. 

Property-related home insurance discounts

Safety discounts

If there's something that makes your home more fire-, break-in- or weather-resistant, your home insurance company may reward you with a lower premium. You could earn a safety discount for having the following:  

• Fire sprinkler system
• Doorbell camera
• Window sensor 
• Smart lock 
• Deadbolt lock
• Reinforced windows 
• Burglar alarm 
• Security system 
• Fire extinguishers 

New roof discount

You're less likely to file a claim on a newer, strong roof versus an older one. Roof replacement can cost a substantial amount of money, and a damaged or aging roof can pose a costly risk to homeowners insurance providers.

New home or new buyer discounts

Several insurance carriers offer a discount if a homeowner purchases a new construction home or is a first-time homeowner. Even if a home is not brand new, you could still qualify for this discount; the number of years a home is considered “new” will depend on the insurance company.

Restoration discounts

Homeowners who purchase an older home and make updates to meet current construction standards can often benefit from this type of discount. However, keep in mind that a restoration discount is generally only applied when almost all the systems have been replaced in a home (electrical and plumbing, for instance).

Neighborhood discounts 

Living in a gated community or neighborhood with low crime rates could result in a discount or lower premium. 

Green home discount

Some home insurance companies extend savings to LEED-certified homes or those with ENERGY STAR-labeled appliances.

Policyholder-related home insurance discounts

Employee or military discounts

Special savings opportunities are often available for current or former military members. Other professionals can sometimes save, too — certain companies offer savings to teachers, government employees and more. Each insurance provider that offers this type of discount will have its own list of employers or groups that qualify for added savings, so verify whether these discounts are available and what the eligibility requirements are when you get a quote.

Discounts for retired people or seniors

A perk of getting older is potentially earning home insurance discounts. Some insurance providers refer to this as a senior, mature or retired homeowner discount. Such discounts are sometimes justified by homeowners staying closer to home or inside the house regularly, which may help deter crime and allow them to spot other potential problems sooner.

Non-smoker discount

Smokers tend to have more fire-related claims, and smoking inside the home can result in other claims. To earn this discount, your home must usually be smoke-free for at least a couple of years.

How do home insurance discounts work?

Home insurance discounts are essentially financial rewards that insurance companies offer homeowners who take steps to mitigate risks. These measures not only protect homeowners but also decrease the chances of an insurer needing to cover large claims. To qualify for discounts, homeowners must meet the required underwriting guidelines, which vary between carriers. The criteria could range from being a senior citizen to having few or no prior claims to installing a new roof or safety device.

You don't always need to wait until your policy renews to add discounts. If you've recently finished a renovation, purchased a doorbell camera or installed a new roof, be sure to let your insurer know. You may be able to benefit from savings right away.

Other ways to save on homeowners insurance costs

You may be able to reduce your homeowners insurance costs even further with some well-thought-out tactics. Remember, it's crucial not to skimp on essential coverage to save cash — it might lead to bigger expenses if disaster strikes. Here are some money-saving options that could help lower your premium:

• Get quotes for various deductible amounts to find the one that works best for you
• Install a security system (note that you may want to have your agent determine how much it can save you before committing to the purchase, though)
• Consider bundling your auto and home insurance
• Improve your credit
• Eliminate high-risk items like swimming pools and trampolines

Frequently asked questions