Homeowners insurance protects your property from significant losses. Plus, mortgage lenders typically require homeowners insurance. So whether you roll the premiums into your escrow account or pay out of pocket, homeowners insurance is a substantial expense that you hope you never have to use.

Even so, there are ways to reduce the cost of homeowners insurance. See if one or more of these strategies can help you trim your bill. 

1. Raise your deductible.

Typically, the easiest way to reduce your homeowners insurance premium is to increase your deductible, which is the amount you’ll need to pay on a claim before your insurance covers the remaining expenses.

You’ll be keeping more money in your pocket instead of paying it to your insurer. Just make sure you’ve set aside enough money to cover a larger deductible if you need to file a claim—and to cover more minor repairs on your own. 

2. Bundle homeowners and automotive policies.

Purchasing more than one policy from the same insurance company often results in significant savings. So, if you’re a first-time homebuyer and already have auto insurance, it’s good to ask your car insurance company about their homeowners policies.

3. Explore group coverage.

Similar to bundling your auto and homeowners policies, you might be able to save money by joining ranks with other policyholders. For example, see if your employer administers an economical group homeowners insurance program. 

Likewise, you might be able to participate in a group program through an alumni or trade association, or a professional membership organization. But, again, if you qualify, make sure the rates are competitive.

4. See if you qualify for other discounts.

Home upgrades often improve your home’s resale value. But if the upgrade also makes your home less vulnerable to damage, you might qualify for a premium discount. 

For example, insurers may offer discounts for installing a new roof or windows, updating an electrical system, or adding a whole-house generator. 

Some companies provide discounts if your home has smoke detectors, a burglar alarm system, or deadbolt locks—or if you live close to a fire station or a hydrant. Also, companies may reward you if you’re a nonsmoker, choose automatic payments, or work in a particular profession.

These discounts are not consistently offered among providers, so asking your agent is the only way to know about them!

5. Improve your credit score.

When evaluating your application, insurance companies may look at your credit-based insurance score, which is similar to but different from your credit score.

Even though they are calculated differently, both types of scores include credit factors like your payment history, outstanding debt, and the length of your credit history. And, just as a higher credit score can reduce your borrowing costs, a higher credit-based insurance score can reduce your insurance premiums.

In the eyes of insurance companies, a solid credit history means that you’re staying on top of mortgage payments and maintaining your property, which means your home is structurally sound and more likely to withstand adverse weather impacts.  

6. Shop around.

If you’re buying homeowners insurance for the first time, comparing options among several providers is essential. However, don’t focus exclusively on price. It’s also vital to research claims satisfaction among policyholders.

Also, when you inquire about homeowners policies, consider your customer experience. Is the agent willing to answer all your questions, discuss your options, and help you decide on a policy that suits your needs? 

7. Remain committed.

Some insurance companies offer discounts to long-term policyholders, which provide valuable savings to loyal customers. Even so, it’s a good idea to shop around every few years and be confident that you’re getting a good deal.