9 Ways to Save On Homeowners Insurance in 2024 (2024)

FAQs

9 Ways to Save On Homeowners Insurance in 2024? ›

Raise your deductible

A deductible is the amount of money that you are responsible for paying toward an insured loss. The higher your deductible, the more money you can save on your premium, so if you can pay above the minimum $500 or $1,000 deductible, for example, you may reduce the cost of your homeowners policy.

Raise your deductible

A deductible is the amount of money that you are responsible for paying toward an insured loss. The higher your deductible, the more money you can save on your premium, so if you can pay above the minimum $500 or $1,000 deductible, for example, you may reduce the cost of your homeowners policy.

Oklahoma is the most expensive state for home insurance; the average rate there is $5,858 a year. Hawaii is the cheapest state for home insurance at only $631 a year, on average. Where you live in the state will also make a difference; for example, coastal homes will often see higher rates than those inland.

Typical homeowners insurance deductibles range from $500 to $2,000, though lower and higher amounts may also be available. However, not all home insurance deductibles are flat dollar amounts. Instead, some are percentages of your home's insured value, such as 1% or 2%.

1. State Farm. State Farm is currently the largest home insurance company in the country, and it's also the largest auto insurer in North America. State Farm is the largest home insurance company in the country and offers policies in all 50 states.

For example, homes that are closer to a staffed fire station tend to have lower premiums because in the event of a fire, it will likely be put out in a timely manner, minimizing the overall damage and cost to your insurer.

Unfortunately, home insurance rates will continue to soar in 2024, according to Insurify's analysis. Annual home premiums are expected to jump by an average of 6% nationally, from $2,377 to $2,522. The rate hikes are projected to reach as high as 23% in some states.

How much does the average American pay for home insurance? ›

The average annual cost of homeowners insurance in the U.S. is $2,511 or $209 per month according to Quadrant Information Services. State Farm is the most affordable home insurance provider for most homeowners. Oklahoma, Nebraska and Texas have the highest average annual home insurance premiums in the U.S.

The IRS considers homeowners insurance to be a non-deductible personal expense. However, there could be some situations or business purposes where you may be able to partially deduct certain expenses, like if you run a business out of your home.

Costs of wind/hail deductibles are usually calculated in one of two ways, Bonelli says. Homeowners may pay a flat amount such as $1,000 or $2,000 per claim. Or, more commonly, homeowners may pay a percentage of their home insurance coverage, typically between 1 and 5 percent, according to the III.

On average, homeowners could save $500 a year by increasing their deductibles. However, a higher deductible means you'll have to pay more out of pocket if disaster strikes. Set up a home emergency fund to make sure you have enough money on hand.

1. Increase your deductible. Depending on your insurance provider, paying a higher deductible (the amount you pay out of pocket before your insurance coverage kicks in, in the event of an incident) is typically a quick and easy way you can decrease your auto insurance payments.

Choose a deductible that makes sense

Choose a property deductible that makes sense for you. If you only need insurance if the claim is more than $5,000, choose a $5,000 deductible. Higher deductibles will reduce the premium.