Best Tips to Save on Homeowners Insurance in 2025

As the cost of living rises, homeowners are looking for ways to cut expenses without sacrificing essential coverage. Homeowners insurance is a necessity, but that doesn’t mean you need to overpay for it. Here are some of the best tips to help you save on homeowners insurance in 2025:

1. Shop Around and Compare Quotes

Insurance rates can vary significantly from one provider to another. In 2025, make it a priority to compare at least three quotes from different insurers to find the best rate. Many online comparison tools allow you to easily get quotes and see how different policies stack up.

• Pro Tip: Don’t just focus on the price—review the coverage limits and exclusions to ensure you’re getting the protection you need.
  
  

2. Bundle Home and Auto Insurance

Many insurance companies offer discounts when you bundle multiple types of insurance, such as home and auto. By choosing the same provider for both, you could save anywhere from 5% to 25% on your premiums.

• Pro Tip: Ask if the provider offers any additional discounts for bundling other policies, such as life insurance or boat insurance.
  
  

3. Increase Your Deductible

Raising your deductible—the amount you pay out of pocket before insurance kicks in—can significantly lower your premium. For instance, increasing your deductible from $500 to $1,000 might save you up to 25%.

• Warning: Ensure you have enough savings to cover the higher deductible in case of an emergency.
  
  

4. Install Home Security Systems

Homes with security systems are less likely to be burglarized, making them lower risk for insurers. In 2025, many insurance companies offer discounts for homes with modern security systems, smart alarms, and surveillance cameras.

• Pro Tip: Many insurers also offer discounts if you install fire alarms, deadbolt locks, and other safety devices.
  
  

5. Maintain a Good Credit Score

A strong credit score can lead to better insurance rates. Insurers use your credit score to gauge your risk level, so improving your score in 2025 can help reduce your premiums. Pay bills on time, reduce debt, and check your credit report regularly to maintain a high score.

6. Review Your Coverage Annually

Over time, your needs may change. Review your homeowners insurance policy every year to ensure you have the right amount of coverage. If you’ve made home improvements or added valuables, you may need to adjust your policy.

• Pro Tip: On the other hand, if you’ve sold off valuable items or finished paying off your mortgage, you might be able to lower your coverage to reduce costs.
  
  

7. Ask About Discounts

Many insurers offer discounts for various reasons, such as being a long-term customer, being a non-smoker, or living in a gated community. Ask your insurer about all the available discounts for 2025, as many people overlook these options.

• Examples: Multi-policy discounts, senior citizen discounts, and loyalty rewards can all contribute to lower premiums.
  
  

8. Rebuild vs. Market Value

When calculating the amount of coverage you need, opt for the rebuilding cost instead of the market value of your home. The cost to rebuild is often lower than the market value, especially in a fluctuating real estate market, which can help reduce your premium.

9. Avoid Small Claims

Filing frequent claims can result in higher premiums or even cancellation of your policy. In 2025, it’s smart to avoid filing claims for minor damage or repairs you can cover out of pocket. Keep insurance for major disasters and emergencies.

10. Work with an Independent Insurance Agent

An independent insurance agent, like Toby Hansen Insurance Agency, can help you compare policies from multiple companies and find the best homeowners insurance that meets your needs at the lowest cost. Agents can also help you navigate discounts and customize your coverage.