How can you save on homeowners insurance?

The cost of homeowners insurance is unfortunately on the rise. But with the increase in extreme weather due to climate change, having protection on a valuable asset like your home is more important than ever.

Of course, that same weather is part of the reason the cost of insuring a home has jumped — the recent cost jumps are "in large part due to increased claims from floods or other natural disasters," said Kiplinger, in addition to other factors like "inflation and elevated home prices," and "industry consolidation and disruption as insurance companies exit whole markets." 

Due to the collective effects of these factors, it is estimated that "home insurance rates are up 37.8% cumulatively since 2019, according to LendingTree," said Kiplinger. So, how exactly can you save on this non-negotiable?

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Enhance your home's security

A big part of your home insurance cost comes down to risk, so taking steps to minimize your home's exposure to said risks can lead to savings. You do not necessarily have to spend big to save, either — "even the basics can save you money when it comes to home security," NerdWallet said.

Relevant updates might include "having a smoke detector, burglar alarm or deadbolt locks on your home," said NerdWallet. "Adding a comprehensive sprinkler system along with an actively monitored fire and burglar alarm could save you even more."

Get credit for home improvements you have made

If you have made improvements to your home since you initially got it insured, make sure you are getting proper credit for that. 

For instance, "installing a new roof or retrofitting your existing roof to make it more resilient to storm damage may generate a premium reduction," said Bankrate. Additionally, said NerdWallet, installing features like "storm shutters" and "upgrading outdated plumbing and electrical systems" could lead to insurance savings.

Bundle your home and auto insurance

Another way to save is by purchasing more than one insurance policy from the same home insurer. "Many companies that sell homeowners insurance also sell auto insurance and umbrella liability policies," said the Insurance Information Institute, and "if you buy two or more insurance policies from the same provider, you may be able to reduce your premium. 

Ask what discounts are available

You may not realize what sorts of discounts your insurance provider offers if you have not asked before. As mentioned, many insurance companies offer "discounts for safety measures," such as "installing smart smoke detectors" or a home security system, and you might also be able to score a "home improvement discount," said Bankrate.

You could get what is called a loyalty discount "if you have been with your insurer for a while and want to lower your premiums without switching," said Bankrate. Depending on your insurance company, you may also save money if you "use certain payment options or types," as some companies offer price reductions for those "who choose to pay their premium in full or opt into auto-payments."

Certain categories of homebuyers also qualify for discounts. For example, said Bankrate, "some insurance providers offer discounts to first-time homebuyers or people who purchase newly constructed homes," and many have discounts for "current or former military members" and "for other professions, too."

Shop around and compare offers

Perhaps most important in securing a reasonable deal on your homeowners insurance is taking the time to shop around and compare rates. "While it may be easiest to just renew with the company you've always had, take time to get quotes from at least a few other insurers," said The Wall Street Journal.

Reluctant to do the legwork yourself? "You can also enlist an independent insurance agent — meaning one not employed by a specific carrier —" who "can shop around on your behalf and recommend the best policy for your budget," said the Journal.

"Even if you're happy with your current insurance provider or you're facing a fairly minimal increase in premiums, an independent agent might be able to find you a company or policy option with lower rates for the same amount of coverage," said Pat Howard, a home insurance expert at Policygenius, to the Journal.