As insurers take on more risk due to inflation and natural disasters like tornadoes, hurricanes, and wildfires, the price of homeowners insurance is going up, up, and up.
According to a 2025 NerdWallet survey of more than 1,300 U.S. homeowners, 54% report that their insurance premiums have increased in the last year. The national average homeowners insurance cost in the U.S. is now $2,110 per year for $300,000 in dwelling coverage.
People living in regions with a higher risk of climate-related disasters, such as Oklahoma, Texas, and Nebraska, are paying premiums of upwards of $500 per month. That’s not exactly pocket change.
Many accept these rising rates as a given, but the truth is that with a few strategic clicks and phone calls, you can cut your premium by up to 50%.
We’ll walk you through how you can do this today.
Quick Wins: Your 7-Step Strategy
| Action | Potential Savings | Why It Matters |
|---|---|---|
| Shop & Compare | $700–$1,500+ anually | Price shopping is a huge lever; compare like-for-like. (Bankrate 2025) |
| Tune Your Deductible | 10–25% off monthly premium | Higher deductibles = lower premiums; ideal if you have a larger emergency fund. (III 2025) |
| Bundle Policies | 10–30%+ off monthly premium | Fastest way to save; stackable with security-system upgrades. (State Farm 2025) |
| Roof & Resilience Upgrades | Varies | Impact-resistant roofs & state mitigation programs unlock discounts. (State Farm 2023) |
| Modernize Systems | Varies | Updating wiring/plumbing reduces fire and water claims and monthly premiums. (Insurify 2025) |
| Manage Claims | Avoid 10–40% price hikes | Fewer claims = better rates. (Insure 2025) |
| Right-Size Coverage | Varies | Avoid overpaying by insuring for rebuild cost, not market value. (III 2025) |
How Pine Helps You Find the Best Homeowners Insurance
"The hundreds of dollars you save comes from shopping around, but it's a 3-hour job. Give that job to us. Tell Pine AI your current coverage, and we will call 3-5 of the top competitors (like State Farm, Allstate, and Progressive) on your behalf to get like-for-like quotes. We'll handle the repetitive questions, fight off the upsells, and deliver a simple table of the best offers. We do the work. You pick the winner." —Stanley Wei, CEO of Pine
Step 1: Shop & Compare (every 6–12 months)
Quote 3–5 carriers like-for-like
Find 3-5 insurance carriers you’re interested in and compare policies like-for-like, also known as apples-to-apples. You do this by ensuring your variables are aligned across all carriers.
These variables are the following components, which are included in every homeowners policy: Coverage A (dwelling), Coverage B (other structures like fences, detached garages, etc), Coverage C (your personal property), your deductible, and any add-on endorsements.
Once you’ve aligned everything and gotten each carrier's best quotes, the best-priced option will be clear. You can easily save hundreds to thousands of dollars per year on home insurance by doing this.
Ask about payment/loyalty/early-shopper credits
Insurers offer savings they don’t always advertise, such as payment-based discounts for enrolling in autopay, using paperless billing, or paying on time. These can shave off around 5% each, with some carriers letting you stack multiple. (Bankrate, August 2025)
You can also ask about loyalty programs for staying with the same company, or get an early-shopper discount for purchasing a policy with a new company before your current one expires.
Step 2: Tune Your Deductible (mind the emergency fund)
General rule
A deductible is what you’d pay toward a covered loss before your insurance company pays out a claim. Here’s the catch: a higher deductible means a cheaper premium. A lower deductible? You guessed it—higher premium.
According to the Insurance Information Institute, increasing your deductible from $500 to $1000 could reduce your premium by about 10-25%, depending on your insurer, location, and your home value. This is a simple savings solution, as long as your emergency fund can support it!
For those who are even more savings-aggressive, you might choose the 1% rule for choosing a deductible. For example, if your home’s replacement cost (what it’d cost to rebuild your home today, including materials and labor) is $400,000, your deductible is $4,000. With this method, your monthly premium could be reduced even further.
Separate wind/hail/named storm deductibles
Not all deductibles are created equally — homeowners policies often carry separate, event-specific deductibles. Wind/hail deductible applies anytime wind or hail causes damage (tornadoes, thunderstorms, and hurricanes), and is typically higher than the standard AOP (all other peril) deductible.
A named storm deductible only applies when a hurricane or tropical storm receives an official name.
GSP Insurance Group (2025) reports that insurers use a percentage-based coverage, such as 1-5% of dwelling coverage, up to 10% in high-risk coastal states.
Step 3: Bundle & Stack Easy Discounts
Home + Auto
Bundling is the fastest way to stack discounts. Many companies that sell homeowners insurance also sell auto insurance. Carriers are happy to provide you with both services (more money for them!) and encourage your patronage by reducing your monthly premium if you buy both.
According to State Farm (February 2025), bundling their home and auto insurance averages $1,429 in savings per year (or $119 per month). Tack on their “Drive Safe & Save” program, and you could save up to 30% more.
Exact savings vary by state and carrier, but expect to save at least hundreds of dollars by bundling.
Protective devices
Increasing your home security means increased savings. Having a smoke detector, a burglar alarm, or even deadbolt locks installed in your home could mean a small discount, says NerdWallet (March 2025).
Add even more sophisticated technology, such as a sprinkler system, a smart-home device, or an actively monitored fire and burglar alarm? You’ll save even more. The more advanced a security system is, the greater the potential savings because it lowers the risk of claims for the insurer.
Step 4: Roof & Resilience Upgrades (biggest structural lever)
Impact-resistant / Class 4 or metal roofs
State Farm’s March 2023 breakdown of roof upgrades shows that homeowner with impact-resistant roofs (Class 4 rating) installed in their home can qualify for a discount on their monthly premium.
These roofs are made from metal roofing materials that can withstand hail, flying debris, and high winds better than standard shingles. They also reduce the likelihood of interior water damage.
Because impact-resistant shingles last longer and prevent costly storm-related replacements, they lower the long-term risk for both homeowners and insurers.
Wildfire or wind mitigation programs
Certain states, such as California and Florida, offer programs that incentivize homeowners to protect their homes from disasters and, in return, qualify them for a discount.
California: Safer from Wildfires
California requires insurers to offer discounts when homeowners complete approved wildfire-hardening steps, such as installing Class A fire-rated roofs, adding ember-resistant vents, creating defensible space, or participating in programs like Firewise USA.
Florida’s program provides free wind-mitigation inspections, grants for hurricane-resilience upgrades, and legally mandated premium discounts.
The IBHS FORTIFIED standard is recognized by many insurers, who offer discounts, grants, and even state tax credits for homes that meet its resilience requirements, with some states offering wind-related premium reductions of up to 55%.
Step 5: Modernize High-risk Systems (electrical and plumbing)
Replace outdated wiring to reduce fire risk
According to Insurify (October 2025), old or outdated wiring (including knob-and-tube systems) increases the probability of electrical fires and expensive insurance claims.
Upgrading wiring or replacing an aging electrical panel reduces fire risk and makes the home safer. Insurers may offer lower premiums or discounts after electrical system improvements. Make sure you hire a licensed electrician for any wiring or panel work.
Upgrade old plumbing or add automatic water shut-off valves
Insurify also notes that older homes often use cast-iron or galvanized-steel pipes, which can corrode or rust. This raises the risk of leaks and water-damage claims for insurers, meaning a higher premium for you.
Replacing old plumbing with modern materials like copper or CPVC reduces the chance of water damage and can qualify you for discounts. Installing automatic water shut-off valves adds even more protection (and potential discounts) as these devices detect abnormal flow or groundwater and shut off the water supply to prevent any significant losses.
How Pine Can Lower Your Homeowners Insurance
"Your provider counts on you being too busy to call. Prove them wrong. Pine AI can call your current insurer. We will navigate the phone tree, wait on hold, and audit your policy for every available discount—from ‘New Roof’ to ‘Security System’ to the ‘Credit Score’ re-evaluation. We handle the 45-minute call; you get the savings."
—Stanley Wei, CEO of Pine
Step 6: Manage Claims & Your CLUE History
Avoid small claims when feasible
Filing a small claim incident may sound like the right move, but you might end up paying more in the long run if your insurance goes up after making the claim. Insure (November 2025) reports that a single claim could increase your premium from 10 to 40%, depending on your state and the type of claim.
Even though it’s unlikely your premium will increase by the latter end of that range, it’s best to avoid the risk entirely. In fact, most home insurance companies reward this behavior and offer a discount to people who haven’t filed a claim in the past 3-5 years, according to NerdWallet’s March 2025 article.
Know your CLUE report (7-year loss history used by >90% of insurers)
More than 90% of insurers use a CLUE report to evaluate your past claims and to quote your future insurance pricing. The database, maintained by LexisNexis, contains up to seven years of personal property losses, including dates, causes, payout amounts, and catastrophe indicators.
Multiple prior losses, even those from a previous address, can lead to higher rates, surcharges, or fewer insurers willing to offer you a policy. Errors are common, such as incorrect dates, wrong payout amounts, or closed claims listed as open, all of which can artificially raise your premium.
It’s important to review your CLUE report to spot mistakes, understand why rates changed, and anticipate when old claims will fall off your record. You want to know exactly what insurers see before they use it to judge your risk and set your price.
Step 7 — Right-Size Coverage (don’t overinsure or underinsure)
Rebuild cost ≠ market value
Your rebuild cost is NOT the same as your home's market value. The III makes this clear: your homeowner’s insurance should be based solely on how much it’d cost to rebuild your house.
Why? Because the land under your home isn’t at risk from perils like fire or wind. Including the value of your land may lead you to overpay for insurance. Market price can also change based on location or demand, but rebuild cost depends on materials, labor, and construction requirements. Don’t pay a higher premium than necessary!
Replacement cost vs. ACV on roof/personal property
Standard homeowners policies typically reimburse damaged or stolen personal property using actual cash value (ACV), meaning the insurer subtracts depreciation. In other words, you’re getting a fraction back compared to when you initially bought the item.
To avoid paying the difference out of your own pocket in the event of a loss, you can pay extra upfront for replacement cost (RC) coverage, which reimburses you for the full cost of buying new items at today’s prices.
This upgrade applies mainly to personal property, but the same RC vs. ACV principle is also commonly used for roofs in homeowners policies.
Sources
- NerdWallet, The Average Home Insurance Cost in the U.S. for 2025 (May 2025)
- Bankrate, How to save on homeowners insurance premiums in 2025 (May 2025)
- Bankrate, How to get homeowners insurance discounts (August 2025)
- III, 12 Ways to Lower Your Homeowners Insurance Costs (2025)
- GSP Insurance Group, All You Need to Know about Homeowners Insurance Deductibles: AOP, Wind/Hail, and Named Storm Coverage (2025)
- State Farm, Can you really save if you choose to bundle insurance?, (February 2025)
- State Farm, What is an impact-resistant roof? (March 2023)
- California Department of Insurance, Safer from Wildfires
- My Safe FL Home (2025)
- Fortified, a Program of IBHS (2025)
- Insurify, 8 Home Improvements to Lower Home Insurance Costs (2025)
- Insure, How much do claims increase home insurance rates? (November 2025).
- NerdWallet, The Cheapest Home Insurance for 2025 (March 2025)
- LexisNexis, C.L.U.E.® Property (2025)
- III, How to save money on your homeowners insurance (2025)
