How to lower your homeowners insurance premiums

The cost of homeowners insurance has skyrocketed for many people across the United States in recent years.

Insurance experts say policyholders looking to reduce their premiums have some relatively easy options. Other strategies require financial investment and may ultimately save money in the long run, they said.

Average premiums rose 24% from 2021 to 2024 to $3,303 a year, according to a report released last year by the Consumer Federation of America, a consumer advocacy group.

That’s about the same pace of U.S. inflation over that period, according to consumer price index data. An analysis released last year by the U.S. Treasury found that average premiums exceeded inflation by 8.7% from 2018 to 2022.

Residents of some states pay much higher salaries than average. For example, in Louisiana and Nebraska, the average premium is more than $500 a month, or $6,000 a year, according to a February report from Bankrate.

Experts say insurance premiums have risen sharply due to a variety of factors, including inflation associated with home repairs and reconstruction. Climate change is increasing the frequency and intensity of storms and wildfires. reinsurance rates; and the migration of homeowners to more dangerous areas.

Insurance experts say there are several ways homeowners can lower their premiums or avoid sudden premium increases.

Peter Kochenberger, an insurance expert and visiting law professor at USC Law Center, said homeowners can’t control the frequency or severity of weather or natural disasters, but they can have more control over how resilient their homes are to hurricanes, wildfires and other events.

Hazard mitigation efforts include adding storm shutters. Strengthen your roof to protect against hail, wind, and wildfires. For example, houses may be retrofitted to make them more resistant to earthquakes, experts say.

Experts say these improvements can help lower insurance premiums because they reduce the risk of damage to your home. For example, a 2019 study by the National Institute of Building Sciences found that retrofitting a home to withstand hurricane-force winds can save property owners an average of $6 for every $1 invested.

“Unfortunately, all of this costs money,” said Amy Buck, co-founder and executive director of United Policyholders, a consumer advocacy group for policyholders.

For example, roofs and vents with wildfire-resistant features typically cost more than $5,800, while the cost to retrofit an existing roof to be wildfire-resistant can exceed $22,000, according to a 2025 report by Laura Hausman, senior housing policy analyst at the Bipartisan Policy Center, a nonpartisan think tank, citing 2018 estimates from Headwaters Economics.

For example, the cost to install hurricane shutters can range from $13,000 to more than $19,000, Hausman writes. For example, she writes, project costs can vary widely depending on property size, location, materials and contractors.

Some states, including Alabama, California, Colorado and Louisiana, offer grants to homeowners to help pay for mitigation efforts, Hausman wrote.

There are also things some homeowners can do relatively inexpensively, such as installing moisture sensors to help identify leaks more quickly, Bach said.

There is no guarantee that insurance companies will lower premiums for homeowners who undergo mitigation projects, so policyholders “should carefully research their insurance company and local policies,” Hausman wrote. Certain states require insurance companies to reduce premiums for certain upgrades.

Before starting a project, ask your insurance company which home improvements qualify for discounts, according to a March post from Liberty Mutual Insurance.

Also note: According to your insurance company, some home improvements, such as adding on to your home, add value and can increase your premiums.

An insurance policy’s deductible is the amount a homeowner must pay out-of-pocket before the insurance company begins paying claims.

Experts say raising deductibles is one way to lower monthly premiums.

Bach recommends setting the highest deductible you can afford, while also considering how affordable your deductible is in the event of costly home damage. Homeowners must pay the entire deductible out-of-pocket before insurance kicks in, so make sure you have enough savings in case of a major loss.

Most insurance companies recommend a deductible of at least $500, according to the Insurance Information Institute, an insurance industry group. By increasing your deductible to $1,000, you can save up to 25% on your insurance premium.

Importantly, the institute said, insurance policies may have separate deductibles for certain types of losses. For example, a policyholder living in a state prone to hailstorms may have a separate deductible for hail, while a policyholder living on the East Coast may have a separate windstorm deductible, the report said.

Although it may seem counterintuitive, policyholders should refrain from making claims for all damage to their home, Bach said.

“Don’t go to small claims court,” she said.

Homeowners should try to keep their records as “clean and clear” as possible, Bach said.

For example, she recommends avoiding filing insurance claims for amounts below your deductible whenever possible. In any case, she said, insurance companies won’t pay benefits in such cases, and premiums can go up with each claim.

“Try your best to save up insurance for big losses that you can’t cover yourself,” Bach said. “Because any claim could fall into a high-risk category and potentially result in a higher payout.”

Policyholders should also ensure that they do not have more insurance than they need.

“Check your insurance limits and the value of your home and belongings annually,” says the National Association of Realtors, a real estate trade group. “Some items will decline in value so you may not need as much coverage.”

For example, if a fur coat that originally cost $5,000 is no longer worth much, a policyholder can reduce or cancel a “floater” (an add-on to a policy that provides full coverage for certain valuables) to lower premiums, according to the Insurance Information Institute.

Additionally, NAR says homeowners should keep in mind that they are paying for the replacement cost of their home, not the market value of the home.

According to the institute, “the land beneath your home is not exposed to theft, windstorms, fire, or other hazards covered by your homeowner’s insurance.” “So don’t consider its value when deciding how much to buy homeowners insurance, and you’ll end up paying a higher premium than you need.”

By choosing their insurance company wisely, homeowners may be able to save some money.

For example, some companies that sell homeowners, auto, and liability insurance offer discounts of 5% to 15% on your premiums when you buy two or more policies from them, according to the Insurance Information Institute.

However, policyholders should ensure that the package price is lower than if they were buying individual policies from different insurers, the newspaper said.

According to the institute, you may be able to receive discounts if you stay with the same insurance company for many years. Some insurance companies offer a 5% reduction in premiums for contracts of 3 to 5 years, and 10% reductions for contracts of 6 years or more.

According to the institute, homeowners can shop using consumer guides, insurance agents, companies and online insurance quote services. Experts recommend shopping around regularly to see if you can find a cheaper rate elsewhere. According to a recent study from NerdWallet, some homeowners could save more than $2,000 a year.

In addition to price, homeowners should also consider the quality of service in case they need to file an insurance claim, the newspaper said. The National Association of Insurance Commissioners, a regulatory organization, provides information to help you choose an insurance company, including complaints.

According to the National Association of Realtors, maintaining a good credit score can help lower your premiums, as insurance companies often use credit-based insurance scores to determine premiums.

One way homeowners can improve their credit score is by paying their lenders on time and lowering their credit utilization ratio.

Experts say homeowners may benefit from considering insurance costs when purchasing a home.

First, there are only a few “areas where people shouldn’t live,” such as along the coast, said Kochenburger of the Southern University Law Center.

Of course, that doesn’t deter many buyers.

For example, a 2023 analysis by Redfin found that in U.S. counties with the highest wildfire risk, there were 446,000 more people moving in than moving out in 2021 and 2022, a 51% increase over the 2019-2020 biennium.

According to Redfin, states such as Florida, Texas and Arizona “exploded in popularity despite increased risks from storms, droughts, wildfires, and extreme heat” as people sought more affordable housing, warmer weather, and lower taxes during the same period as work-from-home opportunities increased.

In addition to avoiding low-risk areas, there are other steps homeowners can take, experts say.

According to the Insurance Information Institute, “If you buy a home near a fire hydrant or in an area with professionals rather than volunteer firefighters, your insurance premiums may be lower.” “If your home’s electrical, heating, and plumbing systems are less than 10 years old, it may be even cheaper. If you live in the east, consider a brick home because it’s more resistant to wind. If you live in an earthquake-prone area, look for a wooden home because it’s more likely to withstand this type of disaster.”

If you choose wisely, you could reduce your premiums by 5-15%.

Experts say it’s important to remember that you may need additional types of insurance if you live in certain areas.

For example, standard homeowners insurance typically doesn’t cover damage from floods or earthquakes, so you may need to purchase separate insurance for those risks.

Homeowners can check the Comprehensive Loss Underwriting Exchange (CLUE) report for the home they are considering to get a snapshot of the property’s insurance claims history, which can help determine some of the home’s insurance-related risks, the institute said.