--- title: 10 Tips To Save Money On Your Homeowners Insurance description: Sometimes it feels like you have little or no power over the rising cost of your homeowners insurance. After all, the factors blamed… authors: - name: Lindsay VanSomeren url: https://money.com/author/lindsay-vansomeren/ at_money_since: 2025 articles: 22 covers: - Insurance - Personal Finance - Retirement - Shopping former_staff: true editors: - name: Paul Reynolds role: Senior Editor, Special Projects url: https://money.com/author/paul-reynolds/ bio: Money’s Special Projects Editor, Paul Reynolds, writes and edits stories about many types of insurance, including life, pet, travel and auto. He was previously Money’s Insurance Editor. education: BA, Psychology, Queen's University (Canada), Bachelor of Journalism, Carleton University (Canada) at_money_since: 2020 articles: 95 covers: - Insurance - Banking - Business - Debt - Economy and Politics - Health and Wellness - Housing - Identity Theft - Investing - Lifestyle - Loans - Personal Finance - Pets - Professional Services - Retirement - Shopping - Taxes social: - https://linkedin.com/in/paulreynoldsed/ former_staff: true published: '2025-07-11T14:51:13.000Z' modified: '2025-09-30T23:35:25.000Z' section: Insurance word_count: 1360 canonical: https://money.com/ways-to-save-on-your-home-insurance/ type: Article source: structured-blocks --- > **Disclosure:** We research all brands listed and may earn a fee from our partners. Research and financial considerations may influence how brands are displayed. Not all brands are included. [Learn more](https://money.com/page/disclaimer/). ![Older couple looking happily at a computer screen in their kitchen](https://img.money.com/2025/06/Insurance-Home-Save-Money.jpg) Presented by: ![](https://s3.consumersadvocate.org/prd/image/image/26640/ca233bd3-b14a-447f-8f7e-76ae88bd5aeb.png) Amica offers homeowners insurance that aligns with your priorities and budget, helping you safeguard your most important assets. [Go to Amica.com](https://money.com/pr/j22720da3933?ap_referrer=%2Fways-to-save-on-your-home-insurance%2F) Sometimes it feels like you have little or no power over the rising cost of your homeowners insurance. After all, the factors blamed for the ongoing rise in premiums, like inflation and climate change, seem mostly out of your control as a property owner. But here’s another truth: You actually have more tools to save on your policy than you might think, both in the short term and in the long run. ## Quick steps to save ### 1\. Shop around Unless you’ve recently gathered rate quotes from all available insurers in your area, there’s no way to know whether you’re actually getting the lowest premiums or not. Such a survey is obviously a lot of work, but you can still do a lot to identify cheaper policies by checking around with at least a few of the [best home insurance companies.](https://money.com/best-home-insurance/) Experts recommend gathering a minimum of three quotes each time you shop for a policy, which doesn’t take that long to get. Surveys suggest that up to half of homeowners never bother with this task, but those who do can typically save hundreds per year on their insurance premiums. ### 2\. Calculate the coverage you actually need If you’re still paying off your home, check with your mortgage lender first to see what they require for homeowners insurance coverage. Lenders generally require you to buy [enough coverage](https://money.com/home-insurance-what-happens-no-coverage/) to pay off your mortgage balance if your home is completely destroyed. But those lender limits may still give you leeway to adjust your coverage, and if your home is mortgage-free, they won't apply at all. Take some time, then, to calculate [how much insurance you need](https://money.com/heres-how-to-figure-out-the-amount-of-homeowners-insurance-you-should-actually-buy/) now, and each time your policy comes up for renewal. If you’re not insured enough, raising your coverage limits will also raise your prices. But, better to make this policy tweak now than before you have to file a catastrophic claim. ### 3\. Revisit your coverage options Trimming your insurance costs can begin with reviewing the types of protection you have now, and whether all are necessary, at least at their current levels. Here’s what to look for: - **Policy type:** Most people have a standard HO-3 “special policy,” which covers you for everything except specific exclusions, like flooding. Some insurers offer a more limited HO-2 policy that only covers you for specifically-named perils, which leaves you more vulnerable in the long run but can cost less overall. - **Coverage type:** Insurers offer different reimbursement levels after you file a claim. While an Actual Cash Value (ACV) policy may save you money with your premiums, you may not be able to recover the full amount of damages in the event of a covered loss. ACV takes into account the replacement cost of the damaged item, minus its depreciation. While [Replacement Cost Coverage](https://money.com/replacement-cost-insurance/) (RCV) may cost more up-front in terms of premiums, it factors in depreciation. therefore making you whole following a covered loss. - **Endorsements:** Some insurers offer optional add-on coverages, such as for expensive jewelry or electronics. Check whether you still need these coverages. If not, drop them. ### 4\. Raise your deductible Your deductible is essentially your share of the cost each time you file a claim. The higher your deductible, the less you’ll get back when you need to use your insurance. But — and this is the big draw — choosing a [higher deductible](https://money.com/home-insurance-deductible-increase-save-money/) also means that you’ll pay less in premiums. You’re basically trading the *possibility* of a higher cost if you file a claim for the *certainty* of lower ongoing expenses in the form of your premiums. Homeowners insurance deductibles can range from $250 to $10,000. In disaster-prone areas, a separate deductible may apply, such as in the event of a hurricane strike. These different deductibles sometimes work on a percentage basis, such as 2% to 10% of your Coverage A limit. In either case, choose the highest deductible you can afford to pay out of pocket in case you ever need to file a claim. ### 5\. Check for discounts Insurers frequently offer discounts for all kinds of things — [bundling multiple policies](https://money.com/best-home-and-auto-insurance-bundles/) together, having a newer roof that’s less likely to be damaged, going a certain number of years without making a claim, [installing smart home devices](https://www.amica.com/en/resources/home/safety/how-smart-home-devices-help-protect-home.html) — the list goes on and on. It’s worth contacting your insurer to ask whether you’re getting all of the discounts you’re eligible for, or if there’s anything you can do to qualify for additional discounts. Again, surveys suggest a lot of homeowners never inquire about discounts – but a significant proportion of those who do are successful in saving through these price breaks. ## Longer-term steps to save ### 6\. Thoughtful home upgrades Insurers generally don’t inspect your home before pricing your policy. That said, they *will* consider your home’s details when calculating your rates. If you’re thinking about doing any [home upgrades](https://money.com/home-upgrades-that-lower-insurance-costs/), check with your insurer to see how they might impact your rates. At the very least, you’ll be informed if any upgrades might raise your insurance rates. But [certain upgrades can help lower your insurance costs](https://www.amica.com/en/resources/home/ownership/how-renovating-your-home-affects-insurance-premiums.html), too: - Updating outdated plumbing, electrical and HVAC systems in your home. - Replacing an older roof with a new version that’s resistant to weather and wildfires. - Installing loss-mitigation devices like deadbolts, monitoring cameras and burglar alarms. ### 7\. Consider a new home Packing your bags and moving elsewhere just to save money on home insurance isn’t advisable, nor feasible for most people. But it may factor into the equation for folks who are moving for other reasons, such as new retirees who are transitioning to a smaller, less expensive home to help make their [retirement dollars stretch further](https://money.com/retirement-income/). If you’ve been meaning to move anyway, buying a home with lower insurance costs might be just the nudge you need to go ahead with your plans. ### 8\. Work on building your credit Homeowners insurance companies often consider your credit-based insurance score – a specialized measure – in setting your premium amount. If an insurer decides to [raise your rates](https://money.com/home-insurance-more-expensive-low-credit-score/) or decline your policy application altogether, they’re required to give you notice first. That gives you time to double-check your credit report and make sure it’s accurate or not. In any case, maintaining good credit helps with much more than just lower insurance costs. You’ll get better rates and terms when you’re looking to borrow money, too. ### 9\. Avoid small insurance claims It’s best to avoid filing insurance claims unless it’s really necessary to protect yourself from significant financial harm. One rule of thumb is to resist submitting a claim that amounts to less than your deductible for the policy, and that you could afford to pay out of pocket. Each time you file a claim, your rates could go up. This can happen for several reasons. Insurers might raise your base policy price the next time you renew, and — if you were getting a claims-free discount, common with insurers — you won’t qualify for that sweet savings anymore. However, before you forgo filing a claim, check with your insurer about whether doing so would in fact cause a rate increase. For example, some insurers allow a consequence-free claim if you’re a longtime customer who hasn’t filed one within a certain number of years. ### 10\. Vote for local community infrastructure Looking at the *very* long-term picture, the community around your home has a big impact on your insurance costs, too. Homes that are closer to fire stations and hydrants often pay less for home insurance, for example, as do homes in areas with less property crime. It won’t impact your rates overnight, but these factors are something to keep in mind the next time you head to the ballot box to vote on local community funding or for candidates who advocate for such safety investments. ## Do *not* drop coverage entirely Once you pay off your home, the choice of whether to insure your house or not is up to you. It can be tempting to [drop your home insurance entirely](https://money.com/home-insurance-what-happens-no-coverage/) at that point to save money, but that’s a dangerous move. You could easily end up in financial ruin over things that home insurance regularly covers. 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