As a homeowner, you’re likely aware that insurance costs are a significant expense. But you might be surprised to learn just how much those rates are climbing. With premiums rising faster than inflation, finding ways to save on your homeowners insurance is more important than ever.
This guide will walk you through practical strategies to lower your premiums without compromising on essential coverage. We’ll explore why rates are increasing, what factors influence your costs, and provide actionable steps you can take today to keep more money in your pocket. By the end of this article, you’ll have a clear plan to find affordable, high-quality insurance for your home.
Why are homeowners insurance rates on the rise?
Homeowners insurance premiums have been soaring across the country. According to a July 2025 report from insurance marketplace The Zebra, the national average premium has hit $2,802 per year.
However, that figure doesn’t tell the whole story. In some states, like Nebraska and Oklahoma, homeowners are seeing annual rates climb towards $8,000.
Experts point to several factors driving these increases, including inflation, labor shortages, and government regulations. But the primary driver is the increasing frequency and severity of extreme weather events.
David Seider, The Zebra’s chief commercial officer, noted that “storm damage has become a pivotal piece of policy calculations.” As events like hail, tornadoes, and floods become more common, insurance companies are raising rates to cover the higher risk.
In response, some insurers like State Farm, Allstate, and Farmers have pulled back on issuing new policies in high-risk states like Florida and California. This can make it even harder for homeowners in these areas to find affordable coverage.
5 Ways to Lower Your Home Insurance Premiums
While you can’t control the weather, you can take several steps to reduce your homeowners insurance costs. Here are five effective strategies to help you save.
1. Comparison Shop for Better Rates
Insurance companies use different formulas to calculate premiums, which can lead to vastly different quotes for the same property. Don’t settle for the first offer you receive.
- Get quotes online: Most major insurers provide free quotes through their websites.
- Use marketplaces: Websites like Insurify, Policygenius, and The Zebra allow you to compare prices from multiple carriers side by side.
- Consult an independent agent: An independent insurance agent or broker can often access rates that aren’t available to the public and can help you find the best policy for your specific needs.
2. Ask About Available Discounts
Before switching providers, check with your current insurer to see if you qualify for any discounts. You might be surprised by how many opportunities there are to save.
“There are so many discounts,” says David Seider of The Zebra. “You can get a loyalty discount, a discount for paying in full, for not smoking or for living in a gated community.”
The most common and significant discount comes from bundling—purchasing multiple policies, like home and auto insurance, from the same company. For example, Amica offers a discount of up to 30% for bundling auto, home, and life insurance.
3. Make Your Home Safer
Insurers reward homeowners who take proactive steps to reduce risk. By installing safety and security devices, you can lower your premiums.
- Security Systems: A simple burglar alarm can lead to savings, but a professionally monitored system will typically result in a larger discount.
- Fire Safety: Smoke detectors and sprinkler systems can also reduce your rates.
- Storm-Resistant Features: If you live in a hurricane-prone area, adding features like storm shutters, roof clips, or impact-resistant glass can lead to significant discounts on your premium.
4. Raise Your Deductible
Your deductible is the amount you pay out-of-pocket on a claim before your insurance coverage begins. By choosing a higher deductible, you can lower your annual premium.
According to the Insurance Information Institute, increasing your deductible from $500 to $1,000 could save you as much as 25% per year. Before making this change, make sure you have enough in savings to comfortably cover the higher deductible amount in case you need to file a claim.
5. Improve Your Credit Score
In most states, insurance carriers can use your credit history to help determine your premiums. This is often referred to as a credit-based insurance score. Homeowners with better credit generally pay less for insurance.
The Zebra reports that the average premium for someone with “excellent” credit is $2,260, while someone with “poor” credit pays around $7,260.
By improving your credit score by just one tier, you could save an average of 32% on your premiums. Paying bills on time, reducing debt, and monitoring your credit report are all great ways to boost your score.
Frequently Asked Questions
What does a standard homeowners insurance policy cover?
A standard policy typically covers your home’s structure (dwelling) and your personal belongings from damage caused by events like fire, theft, and windstorms.
It also includes liability coverage, which protects you if someone is injured on your property, and covers additional living expenses if your home becomes uninhabitable during repairs.
What is typically excluded from a homeowners policy?
Most standard policies do not cover damage from floods, earthquakes, mold, or pests. You will likely need to purchase separate policies or add endorsements to get coverage for these specific risks.
What should I do if I’m rejected for homeowners insurance?
Being turned down for coverage can be stressful, but you have options. It can happen for various reasons, including your claims history, your credit score, or the property’s location in a high-risk area.
If you’ve been rejected, try asking neighbors which carriers they use or consult a real estate agent. Many states also offer Fair Access to Insurance Requirements (FAIR) plans, which provide coverage to high-risk homeowners, albeit often at a higher cost.
Take Control of Your Insurance Costs!
While rising insurance rates can be frustrating, taking a proactive approach can make a significant difference.
By shopping around, improving your home’s safety, and leveraging available discounts, you can secure the protection you need at a price you can afford. Start by getting a few new quotes and speaking with your current provider to explore your options!