How to lower your home insurance premiums

Homeowners insurance is designed to help protect you from unexpected losses. But that peace of mind comes with a cost—your premium. The good news is that there may be several ways to lower your homeowners insurance premium while keeping the coverage you need.

If you’re wondering how to save on your homeowners insurance, start by taking a fresh look at your policy, your home, and the discounts you may qualify for. The tips below can help you find the right balance between cost and coverage.

8 tips to save on homeowners insurance

Reevaluate your home insurance premium using the following tips.

1. Shop around

Getting quotes from different insurers can help you compare prices, coverage options, and available discounts. It may also help you spot unnecessary coverages and discover protection gaps in your current policy.

As you compare policies, keep your current homeowners policy nearby so you can make a more accurate side-by-side comparison. And remember: a lower premium is only helpful if you still have the coverage that fits your needs.

2. Bundle insurance policies

If your insurance policies are with different providers, bundling may be worth considering. Bundling insurance means buying multiple policies, such as home and auto insurance, from one provider.

Bundling can make policy management easier and may help you qualify for a multi-product discount. American Family Insurance customers who bundle home and auto insurance may save up to 40% on their home and auto policies together.*

3. Raise your deductible

Your deductible is the amount you agree to pay before your insurance company helps cover an approved claim. In general, a lower deductible means a higher premium, while a higher deductible can lower your premium.

If you currently have a low deductible, consider increasing it to reduce your premium. Just make sure the new deductible still feels manageable if you need to file a claim.

4. Ask about homeowners insurance discounts

One of the simplest ways to start saving is to ask your insurance agent which home insurance discounts you may qualify for. Whether it’s bundling or billing discounts or savings related to home upgrades, there are a variety of ways you may be able to help control what you pay for insurance.

5. Improve your home security

Home safety and security systems may help prevent losses like theft and fire damage. As a result, some insurance companies offer savings to customers who take steps to help protect their home.

Depending on your situation, installing a home security system, adding smoke detectors, or using eligible smart home devices may help you qualify for available home insurance discounts.

6. Update your home

Home updates can do more than improve comfort—they may also help reduce the likelihood of costly damage. For example, updates to plumbing, heating, or electrical systems may help lower your risk and support savings opportunities.

You may also want to consider improvements that help make your home more resistant to severe weather or other damage. In some situations, upgrading your roof with impact-resistant materials, reinforcing parts of your home, or updating utilities may help reduce your premium.

If you’ve updated key systems in your home, ask your insurance agent if you qualify for a renovated home discount.

7. Reassess your home inventory

Homeowners insurance includes coverage for personal property, so it’s smart to keep an up-to-date home inventory. By listing valuables in and around your home, you’ll better understand what you own and whether your current coverage still makes sense.

As you review your inventory, you may find some coverages are no longer necessary, while others need to be adjusted. For example, some belongings could already be covered under your standard home insurance policy's personal property limits. Others may need different protection, such as scheduled property coverage.

You might also find that some items could benefit from additional review, such as whether replacement cost coverage versus actual cash value coverage better fits your needs.

After completing your home inventory, talk with your agent about your current coverage needs.

8. Schedule a personal insurance review

Life changes—and your insurance should keep up. An annual insurance review with your agent can help you update limits, review deductibles, and confirm that your policy still fits your needs, budget, and lifestyle.

Common homeowners insurance discounts to ask about

Home insurance discounts vary, but these are some of the savings opportunities that may be available depending on your policy, property, and state:

• Age of home discount: Newer homes may qualify for savings.
• Auto Pay discount: Signing up for automatic payments may qualify you for a discount.
• Early Bird discount: Have an active policy with another carrier? Get a quote from us at least seven days before that policy goes into effect, and you could receive a discount.
• Generational discount: If your parents are American Family customers, you may qualify for additional savings.
• Home purchase discount: You may qualify if you bought your home within the last few years.
• Loyalty discount: Longtime American Family customers may be eligible for reduced premiums.
• Paid in full discount: Paying your premium in one lump sum may reduce your cost.
• Paperless discount: Enrolling in paperless billing or document delivery may help you save.
• Renovated home discount: Certain updates to systems like plumbing or electrical may help you qualify.
• Rewarded Driver Property discount: Save more on your home insurance when you bundle your home and auto policies and enroll in DriveMyWay.
• Smart home and security system discounts: Eligible smart home devices, alarm systems, and smart security tools may qualify for a discount.

Because availability can vary, your best next step is to ask your agent which discounts may apply to your homeowners policy.

Discover more homeowners insurance savings

No two homes are exactly alike, and no two homeowners have the same insurance needs.

That’s why it can help to connect with an American Family Insurance agent. They’ll be happy to talk through homeowners insurance discounts and other ways you may be able to lower your homeowners insurance premium while maintaining the coverage you need.

This information represents only a brief description of coverages, is not part of your policy, and is not a promise or guarantee of coverage. If there is any conflict between this information and your policy, the provisions of the policy will prevail. Insurance policy terms and conditions may apply. Exclusions may apply to policies, endorsements, or riders. Coverage may vary by state and may be subject to change. Some products are not available in every state. Please read your policy and contact your agent for assistance.

*Customers who bundle home and auto insurance policies may save up to 40% on their home and auto policies together (as of June 2025). Discounts include Multiproduct, Auto Pay, Paperless, and DriveMyWay. Products, pricing, and availability vary based on the way you purchase insurance and by state, property, policy form and company underwriting the home and/or auto policy. Discounts may not apply to all coverages on a home or auto policy.