Key Points ; Homeowners insurance offers critical financial protection from many common causes of damage and destruction to homes, as well as from claims of injury on your property. ; How to lower homeowners insurance costs in the future by taking proactive action today. ; Occupational discounts (perhaps for teachers, doctors or firefighters). ; Updating old electrical, heating, or plumbing systems
Key takeaways ; Homeowners insurance can be costly, but there are several potential ways to save on premiums. ; Consider bundling your current car and home insurance policies, increasing your deductible or shopping around to find a better deal. ; Some providers also offer an assortment of discount opportunities to help you save even more money.
Read our guide for tips on how to save on homeowners insurance — including unlocking hidden discounts and adding a home security system.
HowStuffWorks explores different ways you can save money on your homeowners insurance.
By Janet Fowler Updated October 15, 2024 · Reviewed by Eric Estevez · Fact checked by Jen Hubley Luckwaldt
Homeowners insurance rates rising ; Why home insurance rates are rising · Where homeowners rates rose the most · How to save on home insurance · FAQs
You found your dream home. You even made an offer that the seller has accepted. Before you close your home loan, you must take one more step: You need to purchase homeowners insurance. Find out now: Who pays for closing costs? · Mortgage lenders won’t provide you with a home loan if you don’t first take out a homeowners insurance policy. Taking out such a policy makes sense even if you are one of the lucky few who are able to purchase a home with cash. Homeowners insurance can cover the replacement or renovation of your home should it be d ...
Ask friends and relatives for recommendations for insurers and then do your due diligence. ; Contact the state insurance department to find out whether they make available consumer complaint ratios by company. If they do, check into the insurers you're considering doing business with. ; For price quotes, call companies directly or access information on the Internet. Your state insurance department may also provide comparisons of prices charged by major insurers. ; Get quotes from at least three companies.
The average annual cost of U.S. homeowners insurance is $2,728 — or $227 per month, according to data from Quadrant Information Services. However, the rate you will pay depends on a variety of factors that pinpoint risks for you and your home. Auto-Owners is the most affordable home insurance provider based on the MarketWatch Guides team’s research. Nebraska, Louisiana and Oklahoma have the highest U.S. average annual home insurance premiums.
Is your home fully covered? We can help. Check out reviews of the best home insurance companies, discover coverage options and learn how to save money on your policy.