How to Save on Homeowners Insurance in 2025 Without Losing Coverage
Homeowners Insurance is a must — it doesn’t have to cost you a fortune to get it. Rising premiums are forcing homeowners to look for ways to cut costs without sacrificing the safety they so desperately need in 2025.
The good news? There are smart, risk-free ways you can lower your premiums without sacrificing full coverage. In this guide, I walk you through some simple steps you can take to get your home insurance bill down without leaving your home or your finances at risk.
Homeowners Insurance Costs Going Up in 2025
Insurers have been raising premiums due to inflation, rising claims for climate issues, and rising home values. However, it doesn’t necessarily mean that you’ll pay more. It helps to understand how insurance rates are calculated, and that knowledge can help you lower them.
How to Save on Homeowners Insurance Without Cutting Coverage
Bundle Your Policies
Bundling your homeowners insurance with auto or life insurance is one of the easiest ways to reduce your premium. Major providers generally offer multi-policy discounts that can really add up over time.
Raise Your Deductible
If you choose a higher deductible, you’ll have to pay more out of pocket when you file a claim — but your monthly or annual premiums will be lower. If you already have an emergency fund, this approach makes a lot of sense.
Improve Your Home’s Security
Installing a home security system, smoke detectors, and smart water leak sensors can earn you discounts. The more risks you can mitigate — like theft, fire, or water damage — the more insurers reward you.
Update Old Systems
If your roof, plumbing, electrical, and HVAC systems are outdated, bringing them up to date might reduce your risk profile — and your premiums. If you’ve made upgrades, inform your insurer.
Shop Around and Compare
Loyalty doesn’t always pay in insurance. Different providers can have drastically different rates. Use comparison websites or independent agents to get quotes and negotiate better terms with your current insurer.
Maintain a Good Credit Score
In the U.S. and Canada, insurers use credit-based insurance scores to set premiums. A strong credit score can mean lower insurance rates.
Avoid Small Claims
Filing frequent small claims can result in higher premiums. If a repair is minor — like a broken garage door spring — consider paying out of pocket. This keeps your record clean and shows you’re a low-risk customer.
Ask About Discounts
Many lesser-known discounts exist, including for:
- No claims in 5+ years
- Retired or work-from-home status
- Gated community residence
- Newly constructed homes
Always ask your insurer what discounts are available — you may qualify for more than you realize.
Coverage You Should Never Cut
- Dwelling Coverage: Protects your home from damage. Underinsuring means you may not be covered for major events.
- Liability Coverage: Protects you if someone is injured on your property and covers medical and legal expenses. Don’t reduce this too much.
- Loss of Use: Covers hotel stays and living expenses if your home becomes unlivable from a covered event. This is worth keeping.
Review and Optimize Your Policy Annually
Make it a habit to revisit your policy once a year. Look for outdated valuations, missed discounts, or life changes that alter your risk profile. A 10-minute annual review could save you hundreds.
Frequently Asked Questions
Do I save money when buying homeowners and auto insurance together?
You can potentially save 10% to 25% off your coverage by bundling policies.
Should I risk raising my deductible?
Raising your deductible can lower your premium — but only do it if you have funds available to cover out-of-pocket costs when filing a claim.
Do the rates of insurance change when you do home renovations?
Yes. Upgrades that reduce risk (like a new roof) could lower your premium, but improvements that raise your home’s value might increase it. Always report major changes to your insurer.
Would switching insurers hurt my coverage?
No — there’s no harm in switching providers as long as there’s no gap between policies. Compare coverage terms to ensure you’re getting equal or better protection.
Does working from home reduce insurance costs?
In some cases, yes. Being home during the day reduces the risk of unnoticed damage or burglary. Ask your provider about work-from-home discounts.
