Here's something that might frustrate you: you're probably paying more for homeowners insurance than you need to. Not because you chose the wrong company or have bad credit, but because you're missing out on discounts that are sitting right in front of you. Some of these discounts are automatic if you qualify, but many require you to speak up and ask. Insurance companies aren't exactly known for volunteering ways to lower your bill.
The good news? Once you know what discounts exist, claiming them is usually straightforward. We're talking about real money here—not $10 off your annual premium, but potentially hundreds of dollars in savings. Let's walk through the most valuable homeowners insurance discounts and how to get them.
The Bundling Discount: Your Biggest Money-Saver
If you only remember one discount from this entire guide, make it this one. Bundling your home and auto insurance with the same company typically saves you 10% to 25% on your premiums. State Farm customers save an average of 24% when they bundle, while Allstate offers up to 25% off when you buy both policies together online. Even Progressive, which advertises more modest savings, can save new customers over 20%.
Why does bundling save so much? Insurance companies want your business across multiple products. It's more profitable for them to keep one loyal customer with two policies than to manage two separate customers. They pass those savings on to you. The math is simple: if you're paying $1,500 annually for home insurance and $1,200 for auto, a 20% bundling discount saves you $540 per year. That's real money.
Before you bundle, though, do the math. Sometimes getting the absolute cheapest rate on each policy separately beats bundling with one company. Shop around, get quotes both ways, and compare the total cost. Most of the time, bundling wins—but not always.
New Home Discounts: Timing Matters
Just bought a house? You could qualify for a discount worth up to 40% depending on your insurer and your home's age. Homes newer than 10 years old are particularly attractive to insurance companies because they're built to modern building codes, have updated electrical and plumbing systems, and are less likely to have the kinds of problems that lead to claims.
Some insurers offer a new home purchase discount if you bought your home within the last 12 months, even if the house itself isn't brand new. This is essentially a customer acquisition discount—insurance companies want your business when you're setting up all your new homeowner services, so they sweeten the deal.
Here's what many people don't realize: this discount might not be automatic. When you're shopping for insurance on your new home, specifically ask about new home purchase discounts and age-of-home discounts. They're two different things, and you might qualify for both.
Security Systems: Small Investment, Ongoing Savings
Installing a home security system can reduce your insurance premium by 2% to 15%. The discount varies based on what kind of system you have. Basic smoke detectors and deadbolt locks might get you 5% off. A comprehensive monitored alarm system—the kind where a central monitoring station calls the fire department or police if your alarm goes off—can earn you the full 15%.
In dollar terms, homeowners save an average of $59 to $100 per year with a security system discount. That might not sound like much, but over the life of your policy, it adds up. And that's before you factor in the actual security benefits—fewer break-ins, faster response to fires, and peace of mind when you're away.
Already have a security system? Make sure your insurance company knows about it. You might need to provide proof of monitoring or installation details. Don't have one yet? Run the numbers. If a monitored system costs $30 per month but saves you $100 annually on insurance plus reduces your risk of theft, it's worth considering.
Roof Age and Material: A Discount That Pays for Itself
Your roof is one of the most important factors in your homeowners insurance rate. A new roof—especially one made of durable materials like metal or impact-resistant shingles—can lower your premium by 5% to 35%. The average discount is around 20%, which on a $2,000 annual premium means $400 back in your pocket every year.
Insurance companies care about roof age because roofs older than 20 years are significantly more likely to fail during storms, leading to expensive claims. Some insurers won't even cover roofs over a certain age, or they'll only pay actual cash value instead of replacement cost if something goes wrong. If your roof is less than 10 years old, you're in the sweet spot for discounts.
Here's the catch: most insurers require you to replace your roof voluntarily to get the discount. If your roof is damaged and you file a claim, that doesn't count. But if you're proactive about replacing an aging roof before it fails, insurance companies reward you with lower premiums. When you do replace your roof, notify your insurer immediately and ask about the roof age discount.
Claims-Free and Loyalty Discounts: Playing the Long Game
Insurance companies love customers who don't file claims. If you've gone three years without filing a claim, you can typically earn a 5% discount. Make it five years, and that jumps to 10%. The longer your claims-free streak, the better your rate.
This is why many homeowners avoid filing small claims. If you have a $1,000 deductible and $1,200 worth of damage, it might not be worth claiming. You'd only get $200 from insurance, but filing that claim could cost you your claims-free discount and potentially raise your rates. Sometimes it makes more financial sense to pay out of pocket for minor damage.
Loyalty discounts work similarly. Stay with the same insurer for three to five years, and you might get 5% off. Stick around for six or more years, and some companies bump that to 10%. But here's the thing about loyalty discounts: they're not always worth it. Insurance companies know that most people don't shop around, so they slowly raise your rates over time, betting you won't notice. Your loyalty discount might save you 10%, but if your base rate has crept up 20%, you're still losing money.
The smart move? Shop for new quotes every two to three years, even if you're getting a loyalty discount. Compare what you're actually paying against what competitors offer. If switching saves you more than your loyalty discount is worth, make the move.
How to Actually Get These Discounts
Knowing about discounts doesn't help if you don't claim them. Here's your action plan: First, call your insurance company or log into your online account and review your current policy. Look at what discounts you're already getting. Then ask specifically about the discounts covered in this guide—bundling, new home purchase, security systems, roof age, claims-free, and loyalty discounts.
If you've made improvements to your home—installed a new roof, added a security system, upgraded your electrical panel—tell your insurer. They don't automatically know about these changes unless you report them. Get documentation ready: receipts, installation certificates, monitoring agreements. Some discounts require proof.
Finally, make it a habit to review your insurance annually. Homeowners insurance rates increased by 27% on average in 2024, and they're expected to keep rising in 2025, though at a slower pace. When rates are climbing, every discount matters. Set a calendar reminder each year to shop around, compare quotes, and make sure you're getting every discount you qualify for. The 15 minutes you spend on that call could save you hundreds of dollars.
