In 2025, the rate you pay for homeowners insurance depends on many factors that are out of your control, and premiums have generally trended higher nationwide, especially in catastrophe‑exposed states (Federal Insurance Office). Still, there are practical ways to pay less: bundle your policy, install home security or smart‑home risk‑mitigation devices, increase a deductible you can afford, disaster‑proof your home, adjust coverage to today’s rebuild cost, shop around for quotes (both bundled and unbundled), and manage dog‑related liability in line with your state’s rules.
1. Bundle your insurance policies
Bundling insurance policies is when you purchase two or more policies from the same insurance carrier (most commonly home + auto). Many insurers offer multi‑policy discounts, and the typical advertised range today is about 5% to 25%, depending on the carrier, policy pair and state (Insurance Information Institute). For example: Allstate markets “up to 25%,” Progressive cites average savings around the low single digits for auto+property bundles, USAA lists up to 10% off homeowners when bundled with auto, and Travelers shows up to about 13% on auto and around 10% on home when bundled.
One important note: Even if bundling insurance policies will earn you a discount, that doesn’t mean it will necessarily save you money. Base rates can differ by carrier and state, and “up to” discounts are ceilings. Get side‑by‑side quotes for both bundled and separate carriers to see which is cheaper for comparable coverage.
2. Install home security devices
Installing security and safety devices can reduce risk and may earn premium credits. Basic devices like smoke detectors, deadbolts, and local burglar alarms often earn small credits (around the low single digits). Professionally monitored burglary/fire systems commonly fall in the 5%–15% range, and pairing monitored systems with a residential sprinkler system can reach roughly 15%–20% with many insurers (Insurance Information Institute; see also Travelers Protective Device Discount).
While these systems can save you money, remember there are installation and monitoring costs. Some insurers now offer small “smart home” discounts, program credits, or even subsidized devices for leak detection or electrical fire hazard monitoring; availability and savings vary by state and company (Nationwide homeowners discounts).
3. Increase your deductible
Your deductible is the amount you’ll pay out of pocket before insurance kicks in and covers your financial losses. For example, if your deductible is $2,000, and a fire causes $5,000 worth of damage to your house, you’ll have to pay $2,000 yourself, while your insurance will cover the remaining $3,000. (See our guide to insurance deductibles.)
Some deductibles are dollar amounts, while others are a percentage of your overall coverage. Wind/hail or hurricane percentage deductibles are increasingly common in many states. By increasing or decreasing your deductible, you can adjust your premiums; in general, a higher deductible lowers your premium (and vice versa), but increases your out‑of‑pocket if you have a claim.
A higher insurance deductible can be advantageous in that it saves you money each month on your premiums. But doing so also has its downsides. If you increase your deductible too much, you may end up with out-of-pocket costs that are unaffordable if something goes wrong.
4. Disaster-proof your home
Extreme weather such as wind, hail, and fire continue to drive large insured losses, with severe convective storms a major recent contributor in the U.S. (Munich Re). As a result, more insurers and some states offer credits or grants for verified mitigation—especially recognized standards like IBHS FORTIFIED roofs and wildfire hardening (IBHS FORTIFIED).
Disaster-proofing your home means upgrading construction and materials to reduce damage from local perils (hurricanes, tornadoes, hail, earthquake, wildfire, or flood). Prioritize measures aligned with programs insurers recognize, such as IBHS FORTIFIED for wind/hail, IBHS Wildfire Prepared Home for wildfire, California’s Safer from Wildfires measures, and FEMA‑recognized flood mitigations like elevation and flood openings that can lower NFIP premiums (FEMA).
Mitigation can save money on homeowners insurance and reduce loss severity, but costs vary. To improve ROI, look for grants and programs that defray upgrades, such as Florida’s My Safe Florida Home or Louisiana’s Fortify Homes Program, and time upgrades (like reroofing) to meet FORTIFIED standards.
5. Choose certain dog breeds
Homeowners policies typically include personal liability that can cover dog-related injuries, a loss category that remains costly. Nationally, dog-related injury claim costs totaled $1.12 billion in 2023, with an average cost per claim of $64,555 (Insurance Information Institute). Breed-based rules are changing in some states: Colorado and New York prohibit underwriting or rating solely on breed, though insurers may consider an individual dog’s documented bite/attack history (Colorado law; New York DFS guidance).
Dog breeds that may result in higher insurance premiums or restrictions in some states include:
- Pitbull
- Rottweiler
- Alaskan malamute
- Akita
- Chow chow
- Doberman Pinscher
- Wolf hybrids
- Mastiff
- German shepherd
- Siberian husky
If you already have one of these dogs—or are set on getting one—shop multiple carriers and check your state’s rules. Some insurers publicly state they don’t use breed alone in underwriting (for example, State Farm focuses on a dog’s behavior and bite history). Given rising claim severities, consider higher liability limits or a personal umbrella policy.
6. Adjust your coverage
The amount of coverage you buy is one of the most important factors in determining your homeowners insurance rates. Set your dwelling limit to your home’s current reconstruction (replacement) cost—excluding land—rather than market value. In general, your rates will increase as you increase coverage, so right‑sizing helps you avoid overpaying while ensuring you aren’t underinsured (NAIC; Insurance Information Institute).
To determine the right amount of homeowners insurance coverage, start with a fresh rebuild estimate based on local construction costs and your home’s features, then review buffers like extended or guaranteed replacement cost and higher ordinance or law limits for code upgrades. Complete a home inventory and consider replacement cost for contents and scheduling valuables beyond sublimits (Texas Department of Insurance; Triple‑I).
7. Consider excluding your land
You might think it’s best to buy enough home insurance coverage to match your home’s market value. But market value includes the land, which isn’t insurable. Instead, base Coverage A (dwelling) on the current reconstruction cost of the structure and exclude land value. Your local property assessor’s office may help you estimate land value, but be sure you still meet your insurer’s replacement‑cost eligibility requirements and consider extended/guaranteed replacement cost to avoid penalties for being underinsured (NAIC; Triple‑I).
There are some things you may want to consider before reducing your coverage. First, local rules or ordinance changes may affect whether, how, or where you can rebuild after a disaster. You also want to ensure your coverage still meets replacement‑cost thresholds and accounts for code upgrades—and remember that standard homeowners policies exclude flood and typically exclude earthquake, which require separate coverage if you have exposure (FEMA).
8. Compare quotes
Even once you account for everything else on this list, the premiums you’ll pay for homeowners insurance will still vary from one company to the next. As a result, it’s important to shop around before committing to one company—and to compare bundled vs. unbundled scenarios side by side. Some questions to ask yourself include:
- How much replacement cost coverage do I need?
- What special coverages do I need that not every company offers (e.g., extended/guaranteed replacement cost, ordinance or law, water backup, service line)?
- What discounts might I be eligible for (protective device, mitigation, multi‑policy)?
- What company currently writes my other insurance policies?
Once you’ve narrowed down your search to the companies that meet your unique needs, you can use an online quote tool to get their rates.
Recent national comparisons often find that companies like Nationwide, Travelers, and State Farm frequently offer lower prices for standard profiles, with Erie and Auto‑Owners competitive where available and USAA often a strong value for eligible members. Your results will vary by state, home characteristics, coverage choices, and discounts, so always compare multiple quotes.
What’s next?
- Compare quotes from the best homeowners insurance providers.
- Read our homeowners insurance buyer’s guide.
- Ever wondered what factors in to how much your home insurance costs?
- Don’t forget about home warranties.
