Top Homeowners Insurance Discounts Unveiled [Save Big]

How do homeowners insurance discounts work?

Insurance companies use your home’s age, zip code, and construction type (among other factors) to predict how likely you are to file a claim. If you take certain steps to lower your risk, they may reward you with home insurance discounts.

Homeowners insurance discounts vary from provider to provider. But if you qualify for one, it will be applied to your premium, reducing your insurance bill. 

Which homeowners insurance discounts can I get?

Providers are happy to cut premiums for nearly anything that lowers your risk profile, so there are home insurance discounts for all sorts of things. Here are 15 of the most common discounts you’ll find: 

Bundled policy discount

💸Potential savings: Between 5% and 25%

The most common home insurance discount to ask for is a bundled policy discount. Also known as a multi-policy discount, this is when you purchase multiple types of insurance from the same company, like when you combine your home and auto insurance policies. 

By bundling, you're giving more business to one insurer, incentivizing them to offer you a discount. In most cases, you don't have to bundle all your policies to qualify – even just combining two, like home and auto insurance or auto and renters insurance, can result in savings. 

However, research before committing to a single carrier offering a home insurance discount for bundling. The savings may not be as drastic as you think. New insurers like Hippo can build discounts like companion policies into their base pricing, so the savings are already included.

Early signing discount

💸Potential savings: About 10%

If you’re buying a new place, you could save money and qualify for a homeowners discount if you purchase your policy before your existing one expires or before you close on your new home. 

Most insurers, like Hippo, reward customers for signing up for home insurance eight or more days before they need their policy to start. So consider this property insurance discount a bonus for crossing an item off your to-do list a week early.  

New home discount

💸 Potential savings: Up to 40%

Providers also offer discounted home insurance for newly constructed homes. The reasoning is that newly constructed homes are less likely to experience wear and tear and are made of more modern materials. New pipes are less likely to burst, new furnaces are less likely to malfunction, and new electric wires are less likely to catch fire. As a result, homeowners are less likely to have costly claims.

Loyalty discounts

💸Potential savings: Between 5% and 10%

Another home insurance discount to ask for is a loyalty discount. Providers often give this type of discount once you’ve been with them for several years. The Insurance Information Institute (III) estimates that you could see your premiums drop by 5% after being with the same provider for three to five years and by 10% once you’re with them for at least six years. 

Home improvements

💸 Potential savings: Up to 20%

Certain home improvements can lower your insurance premiums by reducing your risk of damage or loss. For example, performing services like installing a new roof, upgrading your electrical or plumbing systems and adding storm shutters can all lead to discounted homeowners insurance.

Smart home discount

💸 Potential savings: Between 5% and 20%

Did you know that having a modern smart home can help you score discounts on home insurance? Insurance providers love smart home devices. They increase energy efficiency and help protect homes. More importantly, they can detect issues before they happen, minimize damage and lower the number of claims policyholders file. 

Here are a few smart home devices you could get discounted insurance for: 

• Smart thermostats that can prevent frozen pipes
• Smart water leak detectors and automatic shut-off valves
• Smart smoke and carbon monoxide detectors
• Smart home security systems with cameras and motion sensors

No-claims discount

💸Potential Savings: Up to 20%

You know those auto insurance commercials that promise a discount for good drivers? The no-claims discount offers homeowners a similar deal. It trims premiums for policyholders who go a certain number of years (such as three to five years) without filing a claim. 

Why? Fewer claims mean more money in your insurer's pocket, and some companies are willing to pass those savings on to their customers. So, if you're looking for another way to get discounted home insurance, simply being claims-free could help you get there.

No-mortgage discount

💸Potential Savings: Up to 10%

Did you know you could get a home insurance discount for owning your home outright? That’s right. Just like banks, insurers consider you less of a risk if you’re mortgage-free. It signals that you’re a financially responsible (and wealthy) person. On top of that, you’ll also have more of an incentive to maintain and protect your property than someone who only owns a small percentage of their home.

Affinity group discount

💸Potential Savings: Between 5% and 20%

You can also get discounted house insurance simply by joining a certain organization. For instance, if your alma mater, cable company or even employer pairs up with a home insurance company, the partnership may give you access to an affinity group home insurance discount. So, if you already have an insurance provider, check their list of partners to see if they have perks for any groups you’re a part of.

HOA discount

💸Potential Savings: Between 5% and 10%

If you’re part of a homeowners association (HOA), you may be eligible for an HOA discount on home insurance. HOAs often have strict rules that can help reduce the risk of property damage or liability claims. 

For example, HOAs may require regular maintenance, have a neighborhood watch, or provide shared amenities like fire extinguishers or sprinkler systems. These features can make your home safer and less prone to insurance claims. As a result, some insurers may offer discounts to homeowners who are part of an HOA. 

Pay in full

💸Potential Savings: Up to 10% 

Many providers give home insurance discounts if you pay your premium annually instead of monthly. Why? Because paying less frequently reduces administrative costs for the insurer, which they pass back to you as a discount. Plus, you won't have to worry about monthly payments or potential late fees.

Security or safety measures discount

💸Potential Savings: Up to 5%

Installing basic security and safety devices around your home can be another smart way to get discounts on homeowners insurance. These can be any products that reduce your risk of theft, fire, and other hazards, such as:

• Deadbolt locks on exterior doors
• Burglar alarms, bars or reinforced windows
• Smoke detectors 
• Fire extinguishers
• Sprinkler systems

🤔Did you know? 

The National Fire Protection Association recommends having accessible extinguishers at home. Although they may cost more, look for a rechargeable ABC-rated model with metal valves. That way, you won't have to continually buy disposable fire extinguishers, and you'll be prepared for any type of fire.

Gated community discount

💸Potential Savings: Between 5% and 20%

Living within a gated community can also qualify you for a discount on home insurance for a few reasons. First, you need a code to access homes within gated communities, and the entrances are usually guarded by officers or cameras that monitor the neighborhood. This makes your home a lot less attractive to thieves. Also, compared to a homeowner living outside of a gated community, your chances of needing to file a criminal activity claim will be smaller.

Retiree discount

💸Potential Savings: Up to 10%

Another home insurance discount to ask for is a retiree discount if you’re age 55 or older. Insurers often consider retirees to be lower risk because they tend to spend more time at home. As a result, they may be less likely to have a break-in and can detect potential issues like fires more easily. 

Military or other affiliation discounts

💸Potential Savings: Up to 15%

Some insurance companies give discounts for homeowners insurance to military members and essential workers as a way to show appreciation. For instance, you could qualify for discounted home insurance if you fit into one of these groups: 

• Military personnel (active duty or veterans)
• Teachers and educators
• First responders (police officers, firefighters, and EMTs)
• Healthcare professionals (doctors and nurses)

Other ways to save on your homeowners insurance

If you want to learn how to save money on home insurance, you have a few more options besides discounts:

• Raise your credit score. Believe it or not, your credit score can impact your home insurance rates. Taking steps to raise your score, like paying bills on time and keeping credit card balances low, may help you qualify for lower rates.
• Inform your provider about life changes. Certain life events can affect your insurance rates. If you've recently paid off your mortgage, gotten married, quit smoking, or improved your credit score, let your insurance provider know this personal information. It may make you eligible for new discounts on home insurance.
• Make some home improvements. Making any improvement that could lower your risk of filing an insurance claim could help you save money on home insurance. For ideas, check out the list of home improvements and upgrades that can lower homeowners insurance.
• Don’t overinsure. One common way to overinsure is by including your land value in your coverage amount. Since your land isn’t at risk from covered perils, insuring your home for the price you would sell it (rather than the cost of rebuilding it) can unnecessarily increase your premiums.
• Raise your deductible. If premiums are still too high after getting all the discounts available for home insurance, consider bumping up your deductible. This is the amount you agree to pay out of pocket for covered damages and losses before your insurance plan kicks in. But know that a larger deductible will increase the amount you’re responsible for paying if you file a claim. 

Still have questions?

Still unsure about which home insurance discounts you’re eligible for? Contact a Hippo specialist. We’re here to help! In the meantime, scan through these questions: 

What is an insurance-to-value discount?

Some companies give an insurance-to-value discount when your policy’s dwelling coverage limit is at least equal to the estimated cost of rebuilding your home. In other words, if you get enough coverage to replace your home if it's completely destroyed, you may qualify for this house insurance discount since it lowers the amount your insurer would pay.

How much is a 1-year no-claims discount worth?

A no-claims discount can be as much as 20%, depending on your insurer. But you usually need to be claims-free for at least three to five years. Some insurers may offer one-year no-claims discounts, but they may be harder to find.

Does my age affect home insurance?

When it comes to premiums, your age usually doesn’t matter as much as the age of your home. However, some insurers give property insurance discounts to those aged 55 and up, so your age can affect rates. Generally, your age matters more for car insurance, not home insurance.

What features can give a homeowners insurance discount?

You can get discounts on home insurance for upgrading your electrical, heating and plumbing, adding storm shutters, installing security systems, living in a gated community, having a newer home, and more. Contact your insurer or speak with a Hippo specialist to find out which discounts you qualify for.