Homeowners Insurance Discounts & Credits

Homeowners insurance premiums have been on the rise for the last decade. According to the National Association of Insurance Commissioners, homeowner insurance rates have gone up a whopping 47% in the last 10 years.

In 2021, the average homeowner premium hit $1,445 nationwide but costs can vary dramatically by state. ValuePenguin data shows that average premiums range from $598 (Delaware) all the way up to $2,559 in Oklahoma. If your homeowners insurance bill has been climbing you may be looking for ways to save a bit of money. The good news is that there are ways to put a dent in that bill.

While everyone knows that there are numerous discounts available when it comes to car insurance, many people are unaware that there are also dozens of discounts available for homeowner’s policies as well as credits that can put some money back in your pocket.

Here are just a few homeowners insurance discounts that you should be aware of when shopping for a new policy.

12 Homeowners Insurance Discounts to Review

Discounts Details Savings Range
Multiline - Home and Auto Insurance Together

This is more commonly referred to as bundling. It simply means that you bundle your insurance products together, purchasing the majority of your insurance products from the same insurer. The most common home insurance discount for multiline options is combining your home and auto insurance together with one carrier or insurance provider. While the discount will vary by insurer, expect to save 20% to 25%.

From 20% to 25%
New Home Purchase

A new home is always a bonus for a home insurance company because everything in the home is new which reduces the insurers risk. Your home does not have to be brand new, it can be 5 to 10 years old and you can still receive this discount. Speak with your home insurance agent about your new home because this type of discount may vary by state. Expect to save from 15% to 20%.

From 15% to 20%
No Smoking

Despite the fact that smoking has declined over the last decade it is still the number one cause of home fire deaths. According to the National Fire Protection Association (NFPA), smoking was the leading cause of home fire deaths for the five-year period of 2012-2016.

If you have a smoker in the house, you will pay higher homeowner insurance rates due to the increased risk. If your home is smoke free, you could be eligible for a discount. While this credit is not going to be a huge money saver, it could shave 5 to 15 percent off of your premium.

From 5% to 15%
Monitored Security Alarms

Having a monitored security system installed can be a big money saver. These systems not only help reduce the risk of theft and a burglary, they often come with monitored smoke detectors which insurers love. You can expect to save roughly 10% to 15% after having one installed.

From 10% to 15%
Smart Smoke Detectors

Most insurance companies offer a discount for both standard smoke detectors and smart smoke detectors such as a Nest. Smart smoke detectors will often result in a slightly larger discount than a standard smoke detector. It is advised by your local fire department to have a smoke detector in every room in the house and to keep fire extinguishers in your home as well. This discount can range from 2% to 5%.

From 2% to 5%
Impact-Resistant Roof

Hail and wind can cause tremendous damage to a roof which explains why insurance companies are happy to offer a discount if you install an impact or wind resistant roof. Impact resistant roofs are rated from a class 1 through class 4 and the discount will vary by class with a class 4 roof receiving the largest discount. If you are shopping for a new roof, considering upgrading to an impact resistant material. The discount will vary but in certain states, a class 4 roof can result in up to a 35 percent discount.

Up to 35%
Impact-Resistant Roof

Hail and wind can cause tremendous damage to a roof which explains why insurance companies are happy to offer a discount if you install an impact or wind resistant roof. Impact resistant roofs are rated from a class 1 through class 4 and the discount will vary by class with a class 4 roof receiving the largest discount. If you are shopping for a new roof, considering upgrading to an impact resistant material. The discount will vary but in certain states, a class 4 roof can result in up to a 35 percent discount.

Up to 35%
Loyalty Discount

If you been a long-time customer with your insurance company, ask about a loyalty discount. Many insurers will offer a discount after you have been with them for five claim free years. Contact your insurer to ask about this discount, expect to save from 5 to 10 percent.

From 5 to 10%
Smart Home Technology

Smart home devices can monitor our homes when we are away and alert us if something goes wrong. Smart locks, video doorbells, connected carbon monoxide detectors as well as gas and water leak detectors can prevent or minimize claims which is why insurers are happy to offer a discount if you install smart devices. The discount will vary by device but look for a 5 to 10 percent discount.

Helpful Article: Smart Home Devices That Lower Your Home Insurance Rates

From 5 to 10%
Storm Shutters

If you live in a state where hurricanes and other severe weather is common, installing storm shutters can result in a small discount on your homeowners policy. Storm shutters can help prevent damage to your windows and the inside of you home during a major storm. Look for a 5 to 10 percent discount once they are installed.

From 5 to 10%
Sprinkler System

The cost to install a sprinkler system in your home will far exceed any savings you will see on your homeowners insurance. However, if you already have one, or are having one installed for the peace of mind it provides, notify your insurer. The discount can be significant, anywhere from 10 to 20 percent.

From 10 to 20%
Go Paperless

While this discount is usually pretty small, they all add up. Opting for a paperless policy and billing can shave 2-3 percent off of your bill with most insurers.

From 2 to 3%

Homeowners Insurance Credits (Top 3)

Installing smoke detectors, a security system and covering your vehicle with the same insurer is a good start but to really kick-start your savings you have to dig a bit deeper. Here are the top 3 home insurance credits available to homeowners.

  1. New Wiring – The U.S Fire Administration reports that in a typical year there are 67,800 home fires as a result of electrical problems. These fires caused 485 deaths and over $868 million dollars in damage.

    There is nothing insurance companies hate more than a house burning down due to old or faulty wiring. If your house is of a certain age, you may want to consider having it rewired. A professional wiring job will help improve the safety of your home and will result in a new writing credit from many home insurers.

    Call your agent or insurer to see if a credit is available and any standards that must be adhered to in order to get the credit. Look for a discount in the 10 percent range.

  2. No Claims Discount - According to the most recent data from the Insurance Research Council, the average claim payout for homeowner claims in the U.S. was $8,787.

    Every claim an insurer pays out is money out of their pocket so homeowners with zero claims on their record are some of their favorite customers.

    If you have been with the same insurer for a number of years, and have not filed a claim, call your agent and see if you qualify for a no claim discount. In many cases the discount can range up to 20 percent if you have been with the same insurer for over 10 years.

  3. Just Get Older - This one is easy, all you have to do is continue aging. Retired customers are home more often which lowers the risk of fires or break-ins. They can quickly identify a broken pipe, which will limit the amount of damage the house suffers. They also tend to take better care of their homes because they have time.

    If you are retired check with your agent to ensure that you are getting this credit. It should shave 10 to 25 percent off of your yearly premium.

    Homeowners insurance can be expensive but hopefully the discounts and credits mentioned above has helped you learn more about your savings options as a homeowner. Make sure you speak with your home insurance agent about applying these discount and credit options. It's important to know that discounts may vary between states and cities.