Homeowners insurance helps protect your home from damages — it’s one of the most important insurance products you can buy. Find ways to save money with home insurance discounts.
We did the work so you can easily see which companies offer the best discounts for homeowners. Read on to find out which company tops the list.
The Best Home Insurance for Discounts:
- Best Overall: Auto-Owners
- Best for e-Pay: Amica
- Best for Bundling: State Farm
- Best Policy Offerings: Erie
- Best for Newer Homes: Country Financial
Home Insurance Overview
Like other types of insurance, homeowners insurance helps pay for damages or loss to your home or your belongings within it. You can usually get a homeowners policy for most single-family homes. Other types of homes, such as apartments, may need specific insurance coverage.
A homeowners policy can also help protect you from liability should an accident take place on your property. For example, if your dog bites a guest and the other party decides to sue you for damages, your homeowners policy covers the cost.
Homeowners insurance is a vital part of homeownership. Almost every lender requires you to purchase a homeowners policy before it will lend you the money to purchase your home. This helps protect your lender, should the home be destroyed or damaged during the life of your mortgage. The lender can theoretically get the money they lend you back using the homeowners insurance claim.
Even if your home doesn’t have a mortgage, homeowners insurance is still a good idea. It’s one of the most important types of insurance you can buy. In addition to major damages like fire or burglary, homeowners insurance covers other common accidents. The most common type of home insurance claim is damage from wind and hail and water damage and freezing is a close second. Your homeowners insurance helps pay to repair damages or rebuild your home if an unexpected accident takes place.
Common Types of Home Insurance Coverage
You may want to add extra coverage to help protect your home when you purchase a homeowners insurance policy. In areas with high earthquake risk, such as California, for example, you may need to add coverage specifically for earthquakes. Any time you add extra coverage over the standard policy, you can expect your insurance costs to increase.
Maybe you don’t need extra protection. In this case, you can usually purchase a basic (standard) homeowners policy. A lot of basic homeowners policies cover these common items:
- Dwelling: Your home is known as a dwelling in insurance terms. Dwelling coverage provides essential protection to the physical structure of your house.
- Personal property: Personal property protection is the part of your homeowners insurance that covers your belongings from damages or theft. There are usually limits to the dollar amount covered, so expensive items like jewelry may need additional coverage. It also covers belongings outside of your home, such as a bike in a storage unit. For possessions outside your home, coverage is usually limited to a certain percent of the item’s value. Personal property coverage doesn’t protect your car, as your auto insurance policy should cover major damage to your vehicle.
- Other structures: Do you have a garden shed or detached garage on your property? Your homeowners insurance might cover damage to external structures on your policy. Some insurance companies consider other structures to be additional coverage that requires an increase in premiums.
- Loss-of-use coverage: Have you ever thought about where you live if your home suffers extreme damage? You might be able to live with a relative or friend while your home is rebuilt or repaired. However, you may end up living in lodging like a hotel, and costs can quickly add up. Loss-of-use coverage helps pay for the cost of lodging and some part of the cost of meals if you can’t live in your home due to covered damages.
- Liability coverage: Dog bites aren’t the only liability that can happen on a property. Let’s say a neighbor comes over and trips in a hole in the yard. You may be liable for their medical bills. Homeowners liability coverage helps protect you from legal action if an accident occurs in your home or on your property.
Average Annual Home Insurance Premium in the US
How much is homeowners insurance? The average annual home insurance premium, or price of insurance, in the United States is $1,192, according to the Insurance Information Institute.
However, the cost of homeowners insurance varies widely by location. The 10 most expensive states for homeowners insurance are:
- Louisiana: $1,967
- Texas: $1,937
- Florida: $1,918
- Oklahoma: $1,875
- Kansas: $1,548
- Mississippi: $1,525
- Rhode Island: $1,496
- Connecticut: $1,455
- Massachusetts: $1,451
- Colorado: $1,446
The 10 least-expensive states for homeowners insurance premiums include:
- Oregon: $659
- Utah: $664
- Idaho: $703
- Nevada: $742
- Wisconsin: $762
- Arizona: $803
- Delaware: $816
- Washington: $822
- Ohio: $850
- Maine: $866
Places that are prone to more damages tend to cost more in homeowners insurance premiums. Louisiana is prone to flooding along the Gulf of Mexico. Florida is likely to experience tropical storms and hurricanes. Oklahoma and Kansas have strong winds and tornadoes.
Many of the least expensive areas for homeowners insurance often face less severe weather conditions. The deserts of Utah, Idaho and Nevada may not experience extreme weather patterns.
It’s important that you compare home insurance providers when you shop for your insurance policy. This gives you the best chance to find the coverage you need at an affordable price. Most providers also have several discounts you might be able to take advantage of, including discounts like:
- Bundling home and other insurance, like auto insurance
- New home discount
- Loyalty discounts
- Paid in full
- Discounts for fire or burglar alarms
- Roof upgrade discounts
How Are Homeowners Insurance Rates Determined?
Your location can make a big impact on the cost of your homeowners insurance. Your rate is based on the cost to rebuild the home if you lose it completely. In addition to the location of the home, things that can affect your rate include:
- Insurance company
- Age of your home
- Materials the make up the home
- Fire protection
- Claims history nearby, such as number of claims due to tornadoes or theft
- Your recent claims
- Types of optional coverage you add to your policy
- Your credit score
Popular Home Insurance Discounts
Each insurance provider offers specific discounts for their customers but some discounts are common across multiple providers. The most common types of home insurance discounts include:
- Multi-policy: A multi-policy discount, sometimes known as bundling, involves decreasing your insurance costs slightly for all of the policies you have with the same insurance company. For example, you can usually get a home insurance discount by bundling home and auto coverage through one insurance provider.
- Loyalty: Staying with the same insurance company for several years often gives you access to loyalty discounts. Insurance companies know you have other options and want to make it easy to stay with your current company, so they offer a discount for using their services for a long time.
- Claims-free: The amount of claims you make has an effect on your insurance rates. Insurers may offer you a discount if you have no recent homeowners insurance claims.
- Alarm discounts: Alarms and hazard detectors can often save you money on insurance. Common alarms that may give you a discount include fire alarms, smoke detectors and anti-theft devices.
- Paid in full: If you pay your insurance premiums in one annual payment, your insurance company may give you a discount.
- Increase your deductible: A deductible is the amount you pay before your insurance begins to cover repairs to your home. For example, you have a $1,000 deductible and a storm damages your roof. Repairs cost $5,000 and are covered by your insurance company. You’ll pay $1,000 and your insurance company pays the remaining $4,000. You can decrease your insurance premium by increasing your deductible.
Best Home Insurance Discounts
Most insurance companies offer discounts, but it’s important that your insurance company is highly rated. This helps you feel more confident that things will go smoothly if you ever need to make a claim. Check out our picks for the best insurance companies and discounts.
1. Auto-Owners Insurance
Auto-Owners Insurance provides a long list of homeowners insurance discounts that are available to a lot of homeowners. The company ranks in the top 5 for both the 2019 J.D. Power US Homeowners Insurance Study and Property Claims Satisfaction Study.
You can find common discounts like multi-policy discounts as well as more unique discounts. For example, homes with qualified backup generators can receive a discount.
- First time policyholders
2. Amica
Amica is the leader in both the 2019 J.D. Power homeowners insurance studies. As the award winner for both homeowners insurance and claims satisfaction, Amica ranks among the best in almost every category. Rating categories include overall customer satisfaction, policy offerings and billing process.
Choose from discounts like automatic detection devices, such as a water leak detector, to help reduce your costs. Or sign up for electronic billing and receive policy information via email to get a discount on your policy.
- Customers who have existing policies with State Farm
3. State Farm
State Farm is a well-known leader in the insurance industry. With over 18% of market share in homeowners policies, State Farm is the largest insurer in the country. State Farm ranks among average or above average in every category in the JD Power homeowners insurance studies.
One of the best discounts available from State Farm is the company’s multi-policy discount — you bundle home and auto insurance. You can also get roofing discounts for certain types of roofing, such as impact-resistant roofing.
- Independent Agent Network
4. Erie Insurance
Ranking in the top 3 of the J.D. Power Home Insurance Study, Erie Insurance proves it’s among the best in most categories of the study. The company specifically does well in overall satisfaction, policy offerings and price.
You can make an Erie homeowners insurance policy even more affordable with discounts like multi-policy discounts. Save even more by getting a homeowners quote before your current policy expires.
5. COUNTRY Financial
COUNTRY Financial ranks in the top 3 for the J.D. Power Property Claims Satisfaction Study. In the study rankings, COUNTRY ranks better than more providers in all categories.
It also offers a large selection of discounts for most homeowners. In addition to a multi-policy discount that can save you up to 25%, you can save on insurance costs if your home has newer wiring and electrical components.
Find Discounts on Your Homeowners Insurance
Homeowners insurance may be the most important type of insurance you can buy. Even though you need to protect your home, you don’t have to break your budget. There are a lot of home insurance discounts available.
Get several home insurance quotes, compare them and be sure to ask the home insurance companies what discounts are available for your home.