Home insurance prices have risen in many parts of the U.S., driven by higher building costs and more severe weather. You cannot control those trends, but you can control a lot about your own policy and home. These nine steps help make home insurance affordable while keeping the protection you would need after a serious loss.
Shop around and bundle, but compare the same coverage each time.
Home improvements such as a new roof or updated wiring can lower your rate.
Do not save money by underinsuring the rebuild cost of your home.
1. Compare at least three insurers
Home insurance prices for the same house can vary widely between companies. Get quotes with identical dwelling limits, deductibles and liability, and include an independent agent who can check regional insurers. Our guide to working with home insurance agents explains how they can help.
2. Raise your deductible
Moving from a $1,000 to a $2,500 deductible can noticeably reduce your premium. Keep enough in savings to cover the deductible, and use insurance for larger losses rather than small repairs.
3. Bundle home and auto
Multi-policy discounts are among the largest available. Still, price the bundle against separate policies from different companies.
4. Update your roof, plumbing and electrical systems
The age and condition of your roof strongly affects price in many states. Updated electrical, plumbing and heating systems reduce the risk of fire and water damage, and insurers often reward them. Tell your insurer after any upgrade.
5. Add protective devices
Monitored alarms, smoke and water leak detectors, automatic water shut-off valves, deadbolts and storm shutters can earn discounts. See the full list in our home insurance discounts guide.
6. Strengthen your home against local hazards
In hurricane areas, wind mitigation features such as roof straps and impact-rated windows can lower premiums; some states require insurers to offer these credits. In wildfire areas, clearing brush and using fire-resistant materials may help.
7. Improve your credit-based insurance score
Where allowed by state law, insurers use credit history in pricing. Paying bills on time and keeping balances low can help over time.
8. Avoid small claims
Several claims in a short period can raise your premium or make renewal harder. Consider paying for minor damage yourself.
9. Review your coverage each year
Remove riders for items you no longer own and make sure the rebuild estimate is current. Paying for the right amount of coverage, no more and no less, is the goal.
What not to cut
Dwelling coverage below rebuild cost: could leave you unable to rebuild after a fire.
Liability coverage: lawsuits can cost far more than the small premium saving.
Replacement cost on belongings: actual cash value pays much less after a loss.
