How to Save Money on Homeowners Insurance in 2026
With home insurance premiums climbing due to inflation, climate risks, and rising rebuilding costs, American homeowners are feeling the pinch in 2026.Saving money on homeowners insurance doesn't mean...
With home insurance premiums climbing due to inflation, climate risks, and rising rebuilding costs, American homeowners are feeling the pinch in 2026.Saving money on homeowners insurance doesn't mean skimping on protection—smart strategies can cut your rates by up to 47% while keeping your home secure.[1]
Whether you're in wildfire-prone California or hurricane-vulnerable Florida, these proven tips draw from expert advice and insurer data. You'll learn actionable steps like shopping quotes, bundling policies, and upgrading your home to unlock discounts. Let's dive into how to save money on homeowners insurance in 2026.
Shop Around for Quotes: The Fastest Way to Slash Premiums
The single most effective strategy is comparing quotes from multiple insurers.Shopping around can save up to 47% on your premium by finding the best rate for your coverage needs.[1] Don't stick with your current provider out of habit—rates vary widely based on your location, home value, and credit score.
Use online comparison tools to get quotes from top carriers like USAA, American Family, and Auto-Owners, which rank among the cheapest in 2026 according to recent analyses.[4] Experts like Seann Malloy from Malloy Law Offices emphasize rewriting your policy instead of auto-renewing, as even small changes in provider or coverage can yield big savings.[2]
Pro Tips for Quote Shopping
- Gather details on your home's square footage, roof age, and recent upgrades before quoting.
- Compare at least three to five insurers, focusing on financial strength ratings from AM Best (aim for A++ or Superior).[4]
- Time your shopping 21-30 days before renewal to avoid coverage lapses.
In high-risk areas like coastal Florida or hail-prone Texas, state FAIR plans may offer last-resort coverage, but shop private markets first for better rates.[5]
Increase Your Deductible Wisely
Raising your deductible—the amount you pay out-of-pocket before insurance kicks in—is a quick premium reducer.Bumping from $1,000 to $2,500 can save about 12% annually, per rate analyses.[3] From $500 to $1,000, expect 10-25% savings depending on your state and home value.[5]
But only do this if you have an emergency fund covering the higher amount. In disaster zones, watch for separate deductibles like wind/hurricane (often 2-5% of dwelling coverage) or hail-specific ones.[5] Bankrate warns that without savings, this risks financial stress during claims.[4]
Calculate Your Ideal Deductible
- Review past claims—skip small ones under your current deductible to build a claims-free history.
- Build 3-6 months of expenses in savings, per financial guidelines.
- Test scenarios: Use insurer calculators to model premium drops vs. claim costs.
Bundle Policies for Multi-Policy Discounts
Combining homeowners with auto (or life/umbrella) insurance from the same carrier unlocks up to 25% savings.[1][2] Most major insurers like State Farm, Allstate, and Progressive offer bundling perks, making it a no-brainer for multi-policy holders.[3]
This is especially valuable in 2026 amid rising auto rates from repair costs. Review your policies annually—adding a new car or teen driver could boost your bundle discount further.
Unlock Discounts: Don't Leave Money on the Table
Insurers reward low-risk behaviors with discounts totaling 5-25% off premiums. Update your policy mid-term for new eligibilities, as advised by experts.[2]
Common Discounts in 2026
- Claims-free: 5-20% for 3-5 claim-free years—file only major claims to preserve this.[3][4]
- Smart home/security: 5-15% for smoke detectors, deadbolts, alarms, sprinklers, or devices like Nationwide’s Ting sensor.[5][6]
- New home/mortgage-free: Discounts for recent purchases or paid-off homes.[1][4]
- Professional affiliations: Groups like Wildfire Prepared Home or FORTIFIED Home™ programs qualify for verified savings.[2][5]
Ask your agent about loyalty, paid-in-full, or good credit discounts—improving credit alone can lower rates significantly.[1]
Upgrade Your Home for Long-Term Savings
Investing in resilience pays off doubly: lower premiums and better protection against 2026's climate threats like wildfires and storms.[2][6] New roofs, impact windows, or fire-resistant materials can cut rates, but get insurer pre-approval and documentation (photos/inspections).[2][5]
Top Home Upgrades
| Upgrade | Potential Savings | Best For |
|---|---|---|
| New roof (wind/hail-resistant) | 10-30% | High-wind/hail areas like Texas, Midwest[2][3] |
| Impact shutters/windows | Up to 20% | Hurricane zones (FL, Gulf Coast)[2][8] |
| Electrical/plumbing/HVAC updates | 5-15% | Older homes (pre-1980)[3][5] |
| Water sensors/fire sprinklers | 5-20% | Water/fire-prone regions[5][8] |
Choose homes near fire hydrants or with modern codes when buying—insurers factor these into base rates.[5] Proactive programs like roof reinforcements are trending as reinsurers demand hazard mitigation.[7]
Refine Coverage and Shop Smart Providers
Audit your policy: Insure to dwelling replacement cost (not purchase price), drop unneeded riders, and schedule valuables separately.[4][5] Cheapest 2026 options include USAA (military families), American Family, and Auto-Owners with flexible add-ons like equipment breakdown.[4]
Limit small claims to avoid non-renewal, and consider only essential coverage if over-insured.[4]
FAQ: Common Questions on Saving on Homeowners Insurance in 2026
How much will home insurance cost in 2026? Averages hover around $2,000-$3,000 annually, varying by state—shop for personalized quotes.[3]
Does credit score affect rates? Yes, better credit often means lower premiums; check your score via AnnualCreditReport.com (free weekly).[1]
Are there government programs for high-risk areas? Yes, state FAIR plans provide basic coverage; visit your state's insurance department site.[5]
Can I save mid-policy? Absolutely—add discounts or upgrades anytime, not just renewal.[2]
What if I'm denied coverage? Try surplus lines or mitigation upgrades; consult NAIC.org for options.[5]
Is telematics for homes a thing? Yes, like Ting sensors, monitoring for fire risks and offering premium credits.[6]
Next Steps to Cut Your Premium Today
Start by getting free quotes online, then call your agent to audit discounts and coverage. Build that emergency fund, schedule a home inspection for upgrades, and bundle if possible. In 2026's tough market, proactive homeowners save hundreds—act now for peace of mind and a lighter wallet.
Sources & References
- 7 Ways to Lower Your Home Insurance Costs (2025) — Insurify — insurify.com
- How To Cut Your Home Insurance Costs in 2026 — Realtor.com — realtor.com
- How Much Is Homeowners Insurance? Average 2025 Rates — NerdWallet — nerdwallet.com
- Cheapest homeowners insurance in February 2026 — Bankrate — bankrate.com
- 12 Ways to Lower Your Homeowners Insurance Costs — III — iii.org
- 2026 Home Insurance Trends & Predictions — Matic — matic.com
- 2026 Home Insurance Rates: Will SoCal's Record-Wet Months Push... — Inszone Insurance — inszoneinsurance.com
- How insurance is shaping homeownership in 2026 — VIU by HUB — viubyhub.com
Related Articles
The Truth About Term Life vs. Whole Life Insurance
Choosing the right life insurance can feel overwhelming, but understanding the core differences between term life and whole life insurance empowers you to protect your family's future without overpayi...
The Best Term Life Insurance for Parents with Young Kids
As parents with young kids, you're juggling diapers, daycare drop-offs, and dreams for their future—all while knowing one unexpected event could upend everything. Term life insurance steps in as your...
How to Lower Your Car Insurance Premiums in 2026
Car insurance premiums have surged in recent years, with national rates jumping about 20% from 2024 to 2025 alone, leaving even safe drivers stunned by renewal notices.But in 2026, you can fight back...
The Best Life Insurance for Seniors Over 70
Finding the right life insurance as a senior over 70 doesn't have to be complicated. Whether you're looking to cover final expenses, protect your family's financial future, or leave a legacy, there's...