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Homeowners insurance discounts are one of the easiest ways to save on homeowners insurance. With home insurance rates rising nationwide, it’s more important than ever to ensure you’re getting all the discounts you deserve. The national average for a home insurance policy is $2,601 per year, but discounts can save you up to 40%.

home insurance discounts

“There are discounts such as bundling of policies, or security systems. If you’re 55 years old (or older) and retired, or you modernize your plumbing or electrical systems, you may qualify for a price break, too,” says Loretta Worters, spokesperson for the Insurance Information Institute.

You may not qualify for all discounts, but making sure you get the ones you qualify for can keep your home insurance premiums low.

Key Takeaways

  • Homeowners insurance discounts can save you up to 40%
  • Discounts are available for security and construction upgrades to your home that reduce the risk of a claim.
  • Bundling your home and auto policies with one insurance company is one of the biggest ways to save on your premium.

20 common home insurance discounts

Below, we’ve listed 20 of the most common discounts and how much you could save. While not all of these are within your control (like the age of your home), some are for things you can easily do to reduce your rates.

  • Advanced purchase discount: 9%
  • Age of home discount: 11%
  • Automatic payment discount: 3%
  • Burglar alarm discount: 3%
  • Claims-free discount: 5%
  • Construction type discount: 7%
  • Deadbolt discount: 1%
  • Fire alarm discount: 3%
  • Fire extinguisher discount: 2%
  • Gated community discount: 4%
  • Roof discount: 5%
  • Loyalty discount: 6%
  • New home discount: 40%
  • Paid-in-full discount: 6%
  • Smoke detector discount: 2%
  • Sprinklers discount: 6%
  • Storm shutters discount: 1%
  • Upgrades discount: 6%
  • Water safety system discount: 3%

Homeowners insurance discounts on roofs

The age and condition of your roof are major factors an insurance company will look at when determining your rates. An older, worn roof is vulnerable to the elements. Putting in a new roof can earn you a significant discount, and if you choose to upgrade to a wind or hail-resistant roof, you could save even more.

Homeowners insurance discounts on security systems

Installing a burglar alarm can snag you an average discount of 3%, which doesn’t sound like much but is a savings of $78 a year based on the national average of $2,601 a year. Burglar alarms that contact a police station typically net a higher discount. Similarly, alarms linked to a central station, which is a central monitoring staff who will alert the police or the fire departments, on average offer a higher discount than ones that simply sound the alarm and don’t alert local authorities.

Homeowners insurance discounts for seniors

If you are a senior and retired, you might be home more. The majority of residential burglaries occur during the daytime. In turn, you would have more time to make repairs and keep your home in solid shape. Plus, you would most likely be able to keep a closer eye on potential problems, such as a water leak or fire.

The Hartford/AARP is one carrier that offers a discount for seniors and retirees.

Homeowners insurance loyalty discounts

Home insurance companies often reward customers who stick around with discounts ranging from 5% to 8%, depending on how long you have been a customer. While the savings are great, you might still save more by shopping around, so don’t hesitate to get quotes regularly from other companies.

Homeowners insurance paid-in-full discounts

If you’ve got the means to cover the annual bill in one payment for your homeowner’s insurance, it’ll get you a discount. You can easily get this discount if you pay your insurance bill through the escrow account on your mortgage.

How much can you save with home insurance discounts?

How much you save depends on which discounts you’re eligible for and how much of a discount you’re likely to receive depending on the insurance company. You can stack discounts, but most insurance companies have a cap on the total amount discounted.

You’ll likely find the biggest home insurance discount if you buy a newly built home. Insurers provide an average 40% discount to new homebuyers. You’ll also save by bundling your policies. Having the insurance company provide both home and auto insurance gets you an average savings of 18%. The third biggest way to save on your house insurance is linked to the construction type of your home. Fire-resistant or superior building materials get an average rate cut of about 11%. Masonry leads to an average 7% discount.

Discount category Type Average discount
Advance purchase10+ days advance purchase9%
Advance purchase7 days advance purchase8%
Age of home5 years old26%
Age of home10 years old13%
Age of home15 years old4%
Age of home20 years old2%
Automatic paymentsElectronic fund transfer3%
BundleHome and auto18%
BundleHome and umbrella4%
BundleHome and life4%
Burglar alarmPolice department4%
Burglar alarmCentral station4%
Burglar alarmLocal2%
Claims free5 year claims free5%
Claims free10+ year claims free5%
Construction typeFire resistive11%
Construction typeSuperior11%
Construction typeMasonry7%
Construction typeFrame – to 66% masonry veneer6%
Construction typeFrame – over 66% masonry veneer6%
Construction typeAsbestos/stucco4%
Construction typeFrame – to 33% masonry veneer2%
Fire alarmCentral station4%
Fire alarmFire department4%
Fire alarmLocal2%
Fire extinguisherFire extinguisher2%
Gated communityWith patrol4%
Gated communityWithout patrol3%
Electrical, plumbing, heating done at once or over a recent short period of timeHail resistant roof5%
Loyalty10+ years renewal8%
Loyalty5 years renewal6%
Loyalty3 years renewal5%
New homeNew construction recently purchased40%
Paid in fullPaid in full6%
Smoke detectorSmoke detector2%
Storm shutterStorm shutters1%
UpgradesElectrical, plumbing, heating done at once or over recent short period of time13%
UpgradesRoof upgrade11%
UpgradesElectrical upgrade3%
UpgradesPlumbing upgrade2%
UpgradesHeating upgrade2%
Water safety systemWater leak detection – shut off and alarm4%
Water safety systemWater leak detection – shut off3%
Water safety systemWater leak detection – alarm3%

Best homeowners insurance companies for home and auto bundling discounts

Among the top three biggest ways to save on your homeowners insurance premium, bundling your home and auto might be the easiest and the one you have the most control over. You can’t really change how old your home is or its construction type—at least not very easily. You most likely already have a car, and you don’t have to invest a small fortune in making upgrades. 

Here’s a look at the average savings on a home and auto bundle with some of the top home insurance companies in the nation.

Company nameHome and auto rate before discountHome and auto rate after discount% Savings
State Farm$4,144$3,10825%
American Family$4,202$3,53016%

How to save more on home insurance

Here are some tactics for saving more on home insurance premiums:

Bundle, bundle, bundle. You can save by bundling your auto and home insurance. Insurance companies might also offer savings if you bundle your home and life insurance or your home and umbrella policies.

Shop around. You can cancel or switch policies at any time. Compare rates from other home insurance companies regularly to see if you can find a better price.

Increase your deductible. To lower your premiums on any type of insurance policy, bump up your deductible. Just make sure you can afford to pay the deductible if necessary.

Build your credit. In most states, it’s legal for insurance companies to use your credit as a rating factor. Statistics show that people with poor credit file more claims, so improving your credit can lower your rates.

Maintain and repair your home. Keeping your house maintained prevents claims, keeping rates low.

Frequently asked questions about homeowners insurance discounts

Which insurance company has the cheapest home insurance?’s analysis of rates found that Amica has the cheapest home insurance rates among major carriers at $2,000 a year, $600 below the average. However, rates vary and the cheapest home insurance for you may be with a different company.

Do security cameras lower home insurance?

As a general rule, insurance companies offer discounts only for security systems that a security company monitors. So, security cameras that are part of a central alarm system may earn you a discount, but a Ring doorbell probably won’t.

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Charlene Arsenault
Public Relations Associate


Charlene Arsenault is a seasoned journalist with more than 30 years experience in both print and online media, covering topics that range from human interest to arts and entertainment to hard news. Over the past decade or so, her efforts and concentration have shifted to the public relations sector, both as a PR associate for QuinStreet and as the founder and president of the animal welfare nonprofit Pet Rock Fest, Inc.