How to Lower Home Insurance Rates 

By COUNTRY Financial

Home insurance is designed to help cover your home and finances if unexpected damage occurs. But like many household expenses, you may be looking for ways to lower home insurance rates without sacrificing protection. Below are practical, proven strategies to help reduce your premium while maintaining the coverage you need.

How much is home insurance?

Before lowering your premium, it helps to understand what affects the cost of home insurance. Home insurance rates are based on several risk and coverage factors, including:

• Location, age, size and condition of your home
• How many and what types of claims you’ve had in the past
• How much of the risk you take (your deductible)
• The limits you select for liability and medical coverage
• The limits you select for dwelling, personal property, liability, medical, and other coverages

Most insurers offer home insurance discounts for having more than one type of insurance with one company and other safety and loyalty factors. 

How to save on homeowners insurance

1. Look for home insurance discounts

One of the most effective ways to lower home insurance rates is to take advantage of available discounts. Many insurers reward homeowners who reduce risk or demonstrate responsible ownership. You may also be eligible to save if you pay on time or avoid claims for a specified amount of time. COUNTRY offers the following home insurance discounts:

• Claim Free Discount
• Good Payer Discount
• Protective Devices Discount 
• Smart Home Discount
• Welcome Discount 

COUNTRY Financial offers several other home insurance discounts beyond those listed above. Explore our options and see if we can help you save.

2. Bundle your home and auto insurance

Many home insurers offer discounts if you bundle your home and auto insurance, along with any other insurance products you might need. If you buy other types of insurance (like life insurance, for example) from the same company, you'll typically be offered a discount on all of them.

COUNTRY Financial offers a Multi-Policy Discount for clients who bundle home, auto and life insurance policies with us. You can always talk to an agent to see if you qualify for a home and auto insurance bundle.

3. Ask your insurance agent  for a proper home valuation

Reviewing your home’s replacement cost valuation with a representative can help ensure you are not overinsured or underinsured. An accurate valuation may reduce premium costs while helping prevent coverage gaps during a claim. If you have concerns with your level of coverage, talk to a representative. There may be additional coverage options available to help provide you with peace of mind.

4. Install a home security system

If you really want to lower your home insurance cost, lower the risk of damage to your home. A quick way to do this: install a home security system. Security systems reduce the chance of you filing a claim for theft or vandalism, and many insurance companies offer discounts for having them.

5. Build your credit

According to NerdWallet¹, a person with poor credit could pay 73% more for home insurance than someone with good credit. Insurance companies may use your credit score as one factor in assessing risk, as lower scores tend to correlate to poorer loss histories.

6. Change your home insurance deductible

If you want to lower monthly premium costs, you can choose to increase your deductible. 

It’s important to understand that opting for a policy with lower coverage and a higher deductible may provide some savings in the beginning, but it could mean paying more money out of pocket when you file a claim. If you have a home insurance claim and the coverage isn’t sufficient, or the deductible is high, you may have to cover more out of pocket  than expected.  

It's also important to understand the type of deductible you have – whether it’s a set dollar amount or a percentage.  With percentage deductibles, as the cost to rebuild your home increases so will the level of your deductible. 

What causes home insurance rates to increase?

Understanding what raises home insurance rates can help you anticipate changes and make informed coverage decisions. Even if you haven’t filed a claim, external factors can influence your premium.

Common reasons home insurance rates increase include:

• Inflation and rising construction costs: As labor and material costs increase, the cost to rebuild your home rises. Insurers adjust premiums to reflect higher replacement costs.
• Severe weather trends: Increased frequency of storms, hail, hurricanes, or wildfires in your region can raise overall risk levels.
• Claims history: Filing claims or living in an area with high claim frequency may increase premiums.
• Credit score changes: In many states, credit-based insurance scores influence pricing. A lower score may result in higher premiums.
• Coverage increases: Raising your dwelling limits, adding endorsements, or reducing your deductible can increase your premium.
• Regional risk shifts: Changes in local crime rates, litigation trends, or rebuilding demand can affect pricing across entire areas.

Even if your personal risk has not changed, broader economic and regional trends may impact your home insurance rate.

Do home insurance rates vary by state?

Yes, home insurance rates can vary significantly by state due to regulatory, environmental, and economic differences.

Key factors that influence state-by-state variation include:

• Weather risk: States prone to hail, hurricanes, wildfires, tornadoes, or flooding typically see higher premiums.
• State regulations: Insurance laws and rate approval processes vary by state and affect pricing structures.
• Claims frequency: Regions with more frequent or severe claims tend to experience higher average premiums.
• Regional rebuilding costs: Labor availability, supply chain costs, and construction demand affect replacement cost estimates.

Your local representative can help explain how these factors influence home insurance rates in your area.

How much can you lower home insurance rates?

The amount you can save on home insurance depends on your home, coverage selections, and eligibility for discounts. While savings vary by state and insurer, many homeowners reduce premiums by combining several strategies.

Potential ways to reduce home insurance costs include:

• Bundling policies: Combining home and auto insurance with one insurer may qualify you for a Multi-Policy Discount, depending on state availability.
• Increasing your deductible: A higher deductible can lower your premium but increases out-of-pocket costs if you file a claim.
• Installing protective devices: Security systems, smart home technology, and monitored alarms may reduce risk and qualify for discounts.
• Maintaining a claim-free record: Avoiding small claims can help preserve eligibility for claim-free discounts.
• Reviewing your home valuation: Ensuring your coverage reflects accurate replacement cost may prevent over- or under-insuring your home.

Savings are often cumulative. Even modest individual discounts can add up when combined.

Final thoughts

These are just some ways to lower your home insurance rates. Contact an insurance agent to find out more. 

Learn more about COUNTRY Financial home insurance and get a home insurance quote.

Published: 8-14-24
Updated: 4-6-26