7 Home Insurance Discounts You’re Probably Missing
Stop overpaying on homeowners insurance. Learn how to claim these hidden savings today.
If you own a home, insurance is a necessity—especially if you have a mortgage. But your coverage might be costing you more than it should. You may qualify for a homeowners insurance discount or two, yet many of these savings opportunities are never even mentioned during the sign-up process. In fact, a survey of the 10 largest national home insurance companies found that only two discounts—bundling and protective devices—are offered by all 10 insurers]. The rest? You have to ask for them. This guide reveals seven of the most valuable, often overlooked, home insurance discounts. Each entry includes typical savings percentages, eligibility requirements, and a negotiation tip to help you claim every credit you deserve.
Insurers don’t volunteer discount information. You have to ask.
1. Bundling (Multi‑Policy) Discount – 5% to 25%
This is one of the most powerful and widely available discounts. By purchasing two or more policies—such as homeowners and auto—from the same carrier, you can unlock significant savings. The discount applies across both policies, reducing your total premium. Typical savings range from 5% to 25%, with many insurers offering around 15% on average. In fact, the multi-policy discount is so common that it’s offered by virtually every major insurer. For the majority of homeowners, this is the most accessible and highest-impact strategy for immediate savings.
Eligibility: You must have at least two eligible policies (e.g., home + auto, home + umbrella) with the same carrier. Some insurers also extend the discount to renters, condo, motorcycle, boat, or life insurance.
💡 How to claim it: If you already have auto insurance with a different company, request a quote to bring both policies to the same carrier. If you’re already bundled, ask your agent to verify that the discount is applied correctly—occasionally, it may be missing after a policy change or renewal. Also, ask about “bundling stacking” opportunities: adding a third policy (e.g., umbrella or valuable items) can increase the overall discount even further.
2. Smart Home & Water Leak Detection – Up to 20%
Water damage from burst pipes, faulty appliances, or internal leaks is one of the most frequent and costly types of homeowner claims. Insurers are aggressively rewarding homeowners who install advanced leak detection and automatic shut‑off devices. Discounts for comprehensive smart home systems can reach up to 20%, with water leak detection sensors being a key driver of these savings. By helping prevent a small leak from turning into a major claim, you save the insurer thousands—and they pass some of those savings back to you.
Eligibility: You typically need a professionally installed or certified smart water sensor (e.g., Flo, Phyn, Moen Flo, or SimpliSafe) that can detect leaks and either alert you or automatically shut off the water. Some insurers also include smart smoke detectors, thermostats, and security cameras in the discount.
💡 How to claim it: After installing eligible devices, call your insurer and ask to add the “smart home” or “water leak detection” discount. Keep receipts and installation certificates as proof. If your current carrier doesn’t offer this discount, shop around—many specialty insurers (like Hippo or Lemonade) have built their models around smart home technology and offer aggressive discounts.
3. Monitored Security System – 5% to 15%
Installing a professionally monitored security system reduces the risk of theft, fire, and vandalism. Insurers value the rapid, professional intervention that monitored systems provide. Because emergency responders are dispatched immediately, the severity of a loss is dramatically limited—what might have been a total loss becomes a controlled partial loss. Typical discounts range from 5% to 15%, with some carriers offering even more for systems that include fire monitoring and central station reporting.
Eligibility: The system must be professionally monitored (e.g., ADT, Vivint, SimpliSafe with monitoring plan) and, in many cases, must report to a central station. Battery‑only or non‑monitored alarms may not qualify. Some insurers also require proof of a monitored fire alarm or sprinkler system.
💡 How to claim it: Contact your insurer with your monitoring certificate. If you recently upgraded to a monitored system, ask for a retroactive discount adjustment. If your carrier offers a small discount for unmonitored alarms, calculate whether upgrading to a monitored service—and the resulting premium reduction—would offset the monthly monitoring fee. In many cases, the combined savings make the upgrade worthwhile.
4. New Roof & Fortified Home Discount – Varies (up to 30% in high‑risk areas)
An aging roof is one of the top drivers of homeowner claims, especially in regions prone to hail, wind, and hurricanes. Installing a new roof or upgrading to impact‑resistant, weather‑fortified materials can lead to substantial premium savings. While the discount varies widely by carrier and location, some insurers in high‑risk states like Florida offer discounts of 15% to 30% or more for FORTIFIED Roof™ certification. Even in moderate‑risk areas, a new roof often qualifies for a reduced rate due to lower expected claim frequency.
Eligibility: The roof must be new (typically within the last 5‑10 years) or upgraded to meet specific wind, hail, or fire resistance standards. Some insurers require a FORTIFIED Roof™ certification. Age of home and roofing material (e.g., metal, impact‑resistant shingles) also matter.
💡 How to claim it: After reroofing, submit the contractor’s invoice and any certification (e.g., FORTIFIED, IBHS) to your insurer. If the discount is not automatically applied, request a policy review. Also, ask about “roof payment plans”—some insurers offer reduced premiums if you agree to a roof depreciation schedule, which can be advantageous for older roofs that you plan to replace soon.
5. New Construction or Renovation Credit – Up to 40%
Newly built homes or those that have undergone substantial renovations (including updated electrical, plumbing, and HVAC) are statistically much less likely to file claims. Insurers reward this reduced risk with one of the largest single discounts available. The credit can lower your premium by up to 40%, making it the single most valuable discount for eligible homeowners. Even partial renovations—such as upgrading old electrical wiring or replacing a failing HVAC system—can yield a meaningful credit.
Eligibility: The home must be new (typically less than 5‑10 years old) or have undergone significant, recent renovations. Documentation is key: you’ll need permits, contractor invoices, and sometimes inspection reports.
💡 How to claim it: If you’ve recently bought a new construction home, ensure your insurer has the correct build date. If you’ve completed major renovations, gather all permits and receipts, then request a policy review. Some insurers also offer a “soft credit” for homes that are well‑maintained even if not new—so ask about any age‑related discount regardless of your home’s age.
6. Claims‑Free (Loss‑Free) Discount – Up to 15%
Homeowners who go five or ten years without filing a claim are rewarded with a substantial discount. Some insurers offer a cumulative credit: for example, 1% for each claim‑free year, up to a maximum of 15% or more. A high claims‑free discount can transform your premium, but it also creates a financial incentive to avoid filing minor claims. From an economic perspective, if you have a significant claims‑free discount (e.g., 15%), filing a small claim could cost you far more over the next three to five years than paying for the repair out of pocket.
Eligibility: Typically, you need to maintain a clean claims history for three, five, or ten consecutive years. The discount may reset after any claim, even a weather‑related one.
💡 How to claim it: Ask your insurer how many claim‑free years are required for the discount and what the current credit percentage is. If you’ve recently passed a milestone (e.g., five years), request that the discount be applied. Also, ask whether the discount is automatically applied or must be renewed annually. Finally, before filing any claim, get a repair estimate and compare it to the potential premium increase and discount loss over the next few years.
7. Loyalty (Continuous Coverage) Discount – Tends to Grow Over Time
Staying with the same insurer for multiple renewal periods demonstrates loyalty and stability, which many carriers reward with a growing discount. Unlike a flat percentage, loyalty discounts often increase the longer you remain with the company. For example, a carrier might offer a 5% discount after three years, 10% after five years, and 15% after ten years. This discount is designed to retain long‑term customers.
Eligibility: You must have continuous coverage with the same carrier for a specified number of years (often three or more). The discount may be applied automatically after the welcome discount period ends. However, loyalty discounts are not universal; some insurers offer them, while others do not.
💡 How to claim it: Ask your agent how long you’ve been with the carrier and what the current loyalty discount is. If you’re approaching a milestone (e.g., your 5‑year anniversary), ask to have the discount applied on that date. But remember: loyalty discounts must be tested annually against the market. A new carrier may offer an even lower rate even after accounting for your loyalty credit. The best strategy is to compare your current rate to competitors’ quotes every year or two.
