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6 Ways to Save Money on Homeowners Insurance

Learn how to get the home coverage you need, at an affordable price.

Home insurance is a reality of homeownership. Though you can’t control all factors that impact the cost of your policy, we’ll walk you through six ways of making sure you get every discount available to you.

What are some factors that determine the cost of homeowners insurance?

Before you learn about ways to reduce the cost of your homeowners insurance, it’s important to know some factors that determine it. There are many factors at play and different insurers weigh each differently, but generally these circumstances will determine how much you pay for homeowners insurance. 

  • Estimated replacement cost of your home:

    Replacement cost is the amount it costs to rebuild your home from scratch, including the price of labor and materials, in the event of a covered loss.

  • Location:

    Natural disasters, population and the overall likelihood of a claim in your area are associated with your location.

  • Amount of coverage:

    Aside from your dwelling coverage, coverages such as liability, other structures, personal property, endorsements and more also play a factor.

  • Deductible:

    When you maintain a higher deductible, you share in a greater portion of the loss. This typically results in a premium reduction. 

  • Home age and condition:

    A newer home with newer systems will usually be cheaper to insure than an older home with older systems.

  • Claims history:

    Certain claims can cause a direct increase in your premium. Other claims can increase your premium if you lose discounts for being claim free.

  • Catastrophe exposure:

    If your home is located in an area prone to wildfires or hurricanes, your premium can be higher.  

  • Distance from fire stations:

    How far you are from a fire station could play a role in how much damage is done should you have a fire. 

  • Roof age, condition and material type:

    Lots of claims can stem from a poor roof. Wind can blow off old shingles, and water can seep through them more easily. So if your roof is in good condition, you may get a break on your homeowners insurance premium.

  • Home safety features:

    The safer and more secure your home is, the less likely you are to experience theft or vandalism.

  • Insurance provider:

    Not every insurance carrier has the same method of calculating premium. That’s why you’ll get varying quotes from different carriers. 

  • Bundling policies:

    Having more than one policy with an insurer can get you discounts for multiple lines.

And that’s just to name a few. While all these elements help determine your premium, they also may have associated homeowners insurance discounts. Now we’ll outline how to lower your home insurance premium.

1. Ask your insurer about easy discounts

For example, with Amica, you can get home insurance discounts for:1

  • Having no claims in the past three years.
  • Enrolling in electronic billing and policy information.
  • Signing up for automatic payments.
  • Being a loyal customer.2

2. Bundle your insurance policies

Most insurance companies offer a bundle discount when you buy multiple policies from them. For example, Amica offers up to 30% off when you bundle home with your auto, umbrella and life insurance.1 Also, when you bundle, you get the ease and convenience of all your policies being with one company.

3. Make updates to keep your home safe

Making improvements to your home may make it safer, increase its value and help you save money on homeowners insurance. Here are things you can do to make yourself eligible for discounts:1

  • Get a new roof. A newer roof could help you save on your insurance premium in some areas.3
  • Upgrade the electrical, heating and plumbing systems. Subject to location, Amica offers discounts for new or remodeled homes.1,3
  • Install a generator. Depending on where you live, Amica offers a discount if you have an automatic generator.
  • Set up a central security system. Many insurers, like Amica, offer discounts if you have a security alarm or smoke detectors.1
  • Use automatic detection devices. Homeowners with a temperature monitoring system, or a water leak or gas leak detection system may receive a discount.4 Early detection of these problems also can help prevent costly claims. Amica offers a wide variety of discounts for various smart home devices. To see what discounts you may be eligible for, visit our Smarter Home Savings page.

If you’re making any of these investments, ask Amica about the home improvement discounts available and the requirements to qualify for them.

4. Review your policy each year

Your home insurance needs may change over time, so it’s worthwhile to review your insurance policy annually. This routine ensures you’re not paying for coverage that’s no longer applicable. For example, if you sell an antique that you had scheduled for extra protection, canceling that coverage can save you money.

5. Raise your deductible

A deductible is the amount you pay toward a claim before your insurance benefits kick in. Typically, the higher your deductible, the lower your insurance premium will be. However, you shouldn’t take on a deductible you can’t afford in the event of a claim.

6. Compare quotes and companies

Comparing insurance offerings from a few different companies may pay off in savings and a better customer experience. Here’s what to keep in mind:

  • Find reputable home insurance providers in your state through the National Association of Insurance Commissioners.
  • Check consumer guides like Consumer Reports and J.D. Power to find insurers fellow homeowners trust. Trustpilot also shows reliable reviews for insurance companies you’re considering.
  • Don’t just consider cost. Ideally, your insurer will offer a fair price, have a track record of good customer service and be financially stable. An A rating or higher from AM Best  means the company is fiscally sound and can pay claims.

Home insurance discounts may require a little research, but the yearly savings can be well worth the effort. Use our checklist above when comparing quotes or reviewing your current homeowners coverage.

Want to learn more about Amica home insurance?

Get a quote online today

or call 833-513-3881

1 Terms and conditions apply, must qualify for each discount. Not all discounts are available in all states.
2 Discount varies based on length of loyalty.
3 Discounts may vary.
4 Documents may be required.

The inclusion of non-Amica companies, products, services or statements herein (“Third-Party Content”) is for general informational purposes only and does not constitute a recommendation or endorsement by Amica Insurance. Policies, views, opinions or positions of Third-Party Content expressed herein are those of the authors and do not necessarily reflect the policies, views, opinions or positions of Amica Insurance. Amica Insurance makes no warranties, express or implied, as to the accuracy and reliability of Third-Party Content.