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The cost of homeowners insurance can vary significantly, sometimes by hundreds of dollars, depending on your state’s insurance regulations, local risk exposure, the deductible you select, and the insurance company you choose. To ensure you get the right protection at a competitive price, consider the following factors when evaluating a homeowners policy.

1. Shop around

   Some insurers have told us they prefer more neutral wording, and in many markets, premiums are converging, so saying “compare prices” might overstate the differences. Think we should frame this as evaluating coverage and service options rather than just cost. So here’s what I’d suggest:

   It may take some time, but reviewing different insurers can help you find the policy that best fits your coverage needs and service expectations. Ask friends for recommendations, check your local directories, or contact your state insurance department. The National Association of ̽����ѡ Commissioners () provides information to help you evaluate insurers in your state, including complaint histories. Many states also provide details on typical coverage options and policy features offered by major insurers.

   Also review consumer guides, speak with insurance agents, check company websites, and use online quote tools. This will give you a sense of current price ranges and help identify companies that offer competitive rates. However, price should not be your only consideration. The insurer you choose should provide both a fair price and high-quality service, especially when you need help filing a claim. To evaluate service quality, review complaint records, ask multiple insurers about their claims process, and get a sense of how they handle customer service. You can also inquire about discounts, coverage options, and other ways they could help manage your costs.

   Check the financial stability of the companies you are considering with rating companies such as A.M. Best () and Standard & Poor’s (). When you've narrowed the field to three insurers, get price quotes.

2. Raise your deductible

   Deductibles are the amount of money you agree to pay toward a covered loss before your insurance company begins to pay a claim, under the terms of your policy. In general, choosing a higher deductible will reduce your premium, while a lower deductible means higher premium costs. Many homeowners choose deductibles in the range of $500 to $2,000, with around $1,000 being a common choice. If you are financially comfortable, increasing your deductible from $500 to $1,000 may reduce your premium by roughly 10 to 25 percent, depending on your location, insurer, and home value. Also note: if you live in a disaster-prone area, your policy may include a separate deductible for certain perils. For example, coastal homes may have a wind/hurricane deductible, hail-prone states may have a hail deductible, and earthquake coverage often comes with its own (sometimes high) deductible or a percentage-based deduction.

3. Don’t confuse what you paid for your house with rebuilding costs

   The land under your house generally is not subject to loss from perils like fire, theft, windstorm, and other risks covered by a homeowners policy; you typically only need to insure the structure. When deciding how much dwelling coverage to buy, focus on the cost to rebuild your home, including materials, labor, and any local building code upgrades, rather than the purchase price or market value that includes land. Keep in mind that replacement costs have risen significantly over time, so it’s important to make sure your coverage limit reflects current construction costs. Insuring based on market value including land can result in higher premiums than necessary, while underestimating replacement cost can leave you underinsured if you need to rebuild.

4. Buy your home and auto policies from the same insurer

   Many insurers offer what’s called a multi-policy or “bundle” discount when you have your auto policy and homeowners (or renters/condo) policy with the same company. Bundling can provide meaningful savings, but the exact discount depends heavily on your state, insurer, and personal risk profile, including factors like home value, car value, and claims history. Not all insurers or states apply the discount to both policies — sometimes it only affects the auto premium — and bundling does not always guarantee the cheapest overall combination. If you cancel one of the policies or switch insurers, you could lose the discount and see your rates increase. To get the best deal, compare quotes both as a bundle and separately, ask your insurer exactly how the discount applies, and confirm the savings are reflected in your policy documents. Bundling can simplify your coverage and save money, but it’s important to understand the details before making a decision.

5. Make your home more disaster resistant

   Before disaster strikes, talk with your insurance professional or company about steps you can take to make your home more resistant to windstorms, hail, wildfires and other natural hazards. Many insurers and mitigation programs reward homeowners who add storm shutters, install impact‑resistant roofing or upgrade to resilient building‑standards (for example the FORTIFIED™ or Wildfire Prepared Home™ designations by IBHS). If your home qualifies, you may qualify for a premium discount, but these savings vary based on your state, insurer and whether the work is verified. Older homes can be retrofitted to make them better able to withstand for earthquakes. In addition, consider upgrading plumbing, electrical or HVAC systems to reduce fire or water damage risk. Ask your agent which upgrades qualify for a discount and what verification or inspection is required.

6. Improve your home security

   You can usually get discounts of at least 5 percent for a smoke detector, burglar alarm or dead-bolt locks. Some companies offer to cut your premium by as much as 15 or 20 percent if you install a sophisticated sprinkler system and a fire and burglar alarm that rings at the police, fire or other monitoring stations. These systems aren't cheap and not every system qualifies for a discount. Before you buy such a system, find out what kind your insurer recommends, how much the device would cost and how much you'd save on premiums.

7. Seek out other discounts

   ̽����ѡ companies offer several types of discounts, but they don’t all offer the same discount or the same amount in every state. For example, people 55 years old and retired may qualify for a discount of up to 10 percent at some companies because they spend more time at home, making them less likely to experience burglaries, more likely to spot fires early, and able to devote more time to home maintenance. Similarly, people who work remotely and spend most of their day at home may reduce certain risks in similar ways, such as deterring break-ins, noticing maintenance issues sooner, or catching potential fire hazards early. Some insurers may recognize these factors when setting rates or offering discounts. In addition, some employers and professional associations administer group insurance programs that may offer better deals than you can get elsewhere.

8. Maintain a good credit record

   Establishing a solid credit history can help reduce your homeowners insurance costs because many insurers use credit‑based insurance scores as one of the factors when underwriting and setting premiums. While policies and rules vary by state (and some states prohibit the use of credit for homeowners pricing), in states where it is allowed, you’ll be better positioned if you pay bills on time, keep your credit balances low, avoid opening many new accounts, and regularly check your credit reports for errors. If your credit history has improved, it’s worth asking your insurer whether your premium can be reviewed or shopping around for a better rate.

9. Stay with the same insurer

   Staying with the same insurer for several years may earn you what’s often termed “a loyalty discount”. Some companies reduce premiums by around 5 percent after 3–5 years, and up to 10 percent after 6 or more years, but this varies by state, insurer, and your individual profile. Even with a loyalty discount, your premium could still increase due to other factors such as inflation, rising replacement costs, or changes in your risk profile. Simply staying with a company doesn’t guarantee the best price, so it’s wise to periodically compare quotes and review your coverage to ensure your rate remains competitive.

10. Review the limits in your policy and the value of your possessions at least once a year

    Review the limits in your policy and the value of your possessions at least once a year. Make sure your coverage reflects any major purchases, home improvements, or additions to your collection. For high-value items such as jewelry, art, or electronics, you may need a floater or scheduled endorsement to ensure full protection. Conversely, if an item has depreciated and no longer needs the extra coverage, you can reduce or remove it to avoid paying for insurance you don’t need. Check your policy’s valuation method (replacement cost vs. actual cash value) to understand how much you are covered for and consider professional appraisals for very valuable items.

11. Look for private insurance if you are in a government plan

    If you live in a high-risk area, such as one prone to hurricanes, wildfires, floods, or high crime, you may currently rely on a government-backed insurance program because private insurers may limit coverage or charge very high premiums. It’s still worthwhile to explore private market options by contacting an insurance professional or your state department of insurance to see if competitive coverage is available. In some cases, homeowners who take mitigation steps—such as installing storm shutters, reinforcing roofs, creating wildfire-defensible landscaping, or meeting FORTIFIED home standards—may qualify for private market coverage at a lower premium than the government plan.

    Keep in mind, however, that government programs vary by peril: for example, the National Flood ̽����ѡ Program (NFIP) or state-backed wind pools may remain the primary option in coastal or flood-prone areas if private coverage is unavailable or prohibitively expensive. Private market availability is limited in some regions, and insurers may require specific mitigation measures, inspections, or upgraded systems before offering coverage or premium reductions. Understanding these nuances can help you determine whether private insurance is a viable and cost-effective option for your home.

12. When you’re buying a home, consider the cost of homeowners insurance

    When buying a home, consider the cost of homeowners insurance as part of your decision. Homes near fire hydrants or in communities with professional fire departments may cost less to insure. Newer electrical, plumbing, and HVAC systems, as well as construction built to modern building codes or mitigation standards like FORTIFIED Home™, can reduce insurance risk and may even qualify for premium discounts. Insurers also consider factors such as roof type and slope, the number of bathrooms, the overall size of the home, building materials, and the presence of fire or security systems.

    Check the CLUE (Comprehensive Loss Underwriting Exchange) report for the property to review its insurance claim history. A CLUE report lists past insurance claims on the home, such as fire, water damage, or theft, and can help you identify potential problems or understand how claims history might affect your premiums.

    Remember that standard homeowners policies typically do not cover flood or earthquake damage. If your home is in a flood-prone area, you’ll need a separate flood insurance policy, which can vary widely in cost. Similarly, earthquake coverage is available separately in most states, such as through the , with premiums depending on local seismic risk and home characteristics. Considering all these factors and speaking with an insurance professional can help you make a more informed purchase and potentially lower your insurance costs.

If you have questions about insurance for any of your possessions, be sure to ask your agent or company representative when you're shopping around for a policy. For example, if you run a business out of your home, be sure to discuss coverage for that business. Most homeowners policies cover business equipment in the home, but only up to $2,500 and they offer no business liability insurance. Although you want to lower your homeowners insurance cost, you also want to make certain you have all the coverage you need.