The Complete Guide to Homeowners Insurance Discounts: 20 Ways to Save in 2025

Why You’re Probably Paying Too Much

Homeowners across the U.S. are paying record-high premiums—and many don’t realize they’re eligible for meaningful insurance discounts just by making a few upgrades or bundling the right services. Whether you’re a new homeowner or have held the same policy for years, this guide breaks down 20 proven ways to lower your homeowners insurance costs in 2025 without weakening coverage.

At ServiceMaster Restoration By Simons, we help homeowners every day after water, fire, or storm damage. We also see policyholders pay thousands more over time simply because they weren’t aware of common credits their carrier already offers.

How to use this guide:

• Treat the discount ranges as general expectations—actual savings vary by insurer, state, and risk profile.
• Bring documentation (photos, receipts, permits) to your annual review.

1) Smoke Detectors, Fire Alarms, and Fire Extinguishers

Typical discount: ~3%–5%
Installing and maintaining working smoke alarms on every level is one of the simplest ways to qualify for a credit. Monitored fire alarms may qualify for higher credits.
Source: National Fire Protection Association – Smoke alarm guidance

2) Central Burglar and Fire Alarm Systems

Typical discount: up to ~10%–15%
Monitored security systems that alert police/fire can earn sizable discounts.
Example: Allstate highlights home insurance discounts including bundling and device-based savings: https://www.allstate.com/home-insurance/home-insurance-discounts

3) Deadbolt Locks and Reinforced Doors

Typical discount: ~2%–5%
Reinforce external doors and add deadbolts to reduce theft risk; many carriers offer a small but stackable credit.

4) Water Leak Detection & Automatic Shutoff

Typical discount: ~3%–8%
Smart leak sensors and auto-shutoff valves (e.g., Flo by Moen, Phyn) reduce non-weather water losses—some carriers reward them.
Example: Progressive’s homeowners discount page discusses savings programs and bundling: https://www.progressive.com/homeowners/discounts/

5) Impact-Resistant Roofing & Storm-Rated Openings

Typical discount: ~10%–25% (varies widely by region)
Impact-rated shingles and hurricane-/hail-rated windows can materially lower loss risk.
Reference: FEMA wind retrofit technical guidance for roof system improvements: https://www.fema.gov/sites/default/files/documents/fema_technical-job-aid-hurricane-wind-retrofit.pdf

6) Sump Pumps & Backup Power

Typical discount: ~2%–7%
Sump pumps with battery or generator backup help prevent basement flooding during outages—two common claim scenarios in the Midwest/Northeast.

7) Fire-Resistant Building Materials

Typical discount: up to ~10% in wildfire-prone areas
Fire-resistant siding/roofing and ember-resistant vents can reduce risk.
Reference: NFPA’s residential fire safety resources (installation/maintenance best practices): https://www.nfpa.org/education-and-research/home-fire-safety/smoke-alarms

8) New Roof (Age & Material)

Typical discount: ~5%–20%
Newer, code-compliant roofs present lower risk for water/hail intrusion. Many carriers reduce credits after ~10 years—ask your agent how age is scored.

9) Updated Plumbing & Electrical

Typical discount: ~5%–15%
Replacing galvanized piping, knob-and-tube wiring, or undersized panels often qualifies for risk-reduction discounts. Keep permits and invoices on file.

10) Claims-Free History

Typical discount: ~10%–20%
A clean loss history (often 3–5 years) can earn significant savings.
Reference: NAIC homeowner basics & factors: https://content.naic.org/insurance-topics/homeowners-insurance NAIC

11) Homeowners Association (HOA) Membership

Typical discount: ~5%–10%
Some carriers credit HOAs that enforce upkeep, maintain common areas, and provide security.

12) Bundle Home + Auto

Typical discount: ~15%–30% (varies by carrier and disclosures)
Bundling is among the largest, easiest savings levers.
Examples:

• Allstate on bundling up to 25%: https://www.allstate.com/home-insurance/home-insurance-discounts Allstate
• Progressive multi-policy savings & bundling: https://www.progressive.com/insurance/bundling/ Progressive

13) Higher Deductibles

Discount: varies
Choosing a higher deductible lowers premiums; make sure the amount is affordable in a real claim.

14) Green/Efficiency Upgrades

Typical discount: ~5%–10% (carrier-specific)
Some insurers provide “green home” or efficiency credits; separately, you may qualify for federal/state rebates or tax credits that reduce net project cost.
Reference: U.S. DOE Energy Saver hub & Home Energy Rebates overview: https://www.energy.gov/save The Department of Energy's Energy.gov+1

15) Senior/Retiree Discounts

Typical discount: ~5%–10%
If you’re 55+ or at home more, theft/fire risks can be lower—ask your agent if your carrier offers this.

16) Loyalty & Renewal

Typical discount: ~5%–15%
Multi-year customers with good payment history often see renewal credits.
Reference: III on asking for discounts at renewal: https://www.iii.org/article/renewing-your-homeowners-or-car-insurance-policy III

17) Gated Communities & Low-Crime ZIPs

Typical discount: ~5%–12%
Carriers rate risk partly by local crime and fire response—your address matters.

18) Paperless Billing & Autopay

Typical discount: ~1%–3%
These are small but stackable credits many carriers provide.

19) New Home Construction

Typical discount: ~10%–20%
Newer homes (≤10 years) built to modern codes typically rate better on claims risk.

20) First-Time Homeowner Programs

Discount: varies
Some carriers offer introductory programs or preferred pricing for new buyers—ask what applies in your state.

How to Maximize Your Discounts (Step-by-Step)

1. Schedule an annual review with your agent (set a recurring reminder).
2. Bring documentation: receipts, permits, photos of devices/roof labels.
3. Ask structured questions: “Which discounts apply today? Which will apply if I add a smart leak shutoff or impact-rated roof?”
4. Price scenarios: quote your current deductible vs. a higher one you can actually afford.
5. Re-shop every 2–3 years: even if you don’t switch, you’ll learn how competitive your current rate is.
   References (general savings guidance):

• III – Ways to lower homeowners insurance costs: https://www.iii.org/article/12-ways-to-lower-your-homeowners-insurance-costs III
• III – How to save money on your homeowners insurance: https://www.iii.org/article/how-to-save-money-on-your-homeowners-insurance III
• NAIC – Consumer guide to home insurance (PDF): https://content.naic.org/sites/default/files/publication-hoi-pp-consumer-homeowners.pdf NAIC
• FEMA – Homeowner’s Guide to Retrofitting (flood/wind mitigation): https://www.fema.gov/sites/default/files/2020-07/fema_l235_brochure_homeowners_guide_retrofitting.pdf FEMA

Frequently Asked Questions

Do all insurers offer the same discounts?
No. Discounts vary by carrier and state. Use the checklist to confirm what your carrier offers and what documentation they require. (See III & NAIC resources above. IIINAIC+1)

Will a higher deductible always lower my premium?
Generally yes, but actual savings depend on your carrier and claim history. Price multiple deductible options during your review. (III guidance: https://www.iii.org/article/12-ways-to-lower-your-homeowners-insurance-costs) III

Do smart leak shutoffs really earn a discount?
Many carriers credit water-loss mitigation devices; ask yours to confirm eligibility and required brands. (See Progressive’s discounts overview: https://www.progressive.com/homeowners/discounts/) Progressive

Can roof upgrades earn credits outside of hurricane zones?
Yes—impact/hail-rated materials can be credited in hail-prone regions. FEMA retrofit guidance highlights roof system improvements that reduce loss.
FEMA job aid: https://www.fema.gov/sites/default/files/documents/fema_technical-job-aid-hurricane-wind-retrofit.pdf FEMA

If I upgrade, when do discounts start?
Usually once you submit proof and your policy is endorsed—some carriers apply mid-term; others at renewal. Ask your agent how they process changes.

How ServiceMaster Restoration By Simons Helps Homeowners

We don’t sell insurance—but after thousands of restoration projects across Chicago, the North Shore, and Lake County, we know what turns small issues into expensive claims. If you’re planning improvements like smart leak detection, sump pump installations, indoor air quality cleaning, or post-disaster reconstruction, our IICRC-certified team can help protect your home and your eligibility for key discounts.

• Water Damage Restoration
• Fire Damage Restoration
• Mold Remediation
• Specialty Cleaning

Call us: Chicago (773) 376-1110 • North Shore/Lake County (847) 316-9145
Credentials: IICRC Master Fire & Water Restorer; RIA member; 40+ years serving Chicagoland; part of a restoration brand founded in Chicago in 1929.
Further reading: RESTORE: A Complete Guide to Protecting Your Home As Your Most Valuable Asset — https://www.amazon.com/dp/1952779529