The 5 Best Ways to Score a Homeowners Insurance Discount in 2023

These tips could shave hundreds off the average homeowners insurance premium.

A home is the single biggest purchase most people will ever make, and very few have the cash on hand to buy one outright. So it makes sense to protect that investment with homeowners insurance. But that can often mean spending thousands of dollars per year on premiums.

The rate a homeowner pays depends on several factors, including the size and construction of the home, its location, and the claims history. Homeowners may not get to choose what their premiums are, but they can take steps to reduce their costs. Here are the five most impactful ways to reduce homeowners insurance premiums in 2023.

1. Bundling home and auto insurance

Bundling home and auto insurance remains the best way to reduce annual premiums. The typical standalone homeowners insurance policy in the United States costs about $1,787 per year. But add in auto insurance and the price tag drops to just $1,455 for home insurance. That's a savings of $332 per year.

Of course, homeowners who do this will have to pay for their auto insurance policy as well. But they'll likely still come out ahead compared to purchasing separate home and auto insurance policies.

2. Upgrading the roof

Replacing a home's roof could easily cost tens of thousands of dollars, so it's not something most homeowners are eager to do. But there are major upsides to doing so. A new roof can reduce the risk of certain types of storm damage, thus reducing the likelihood of needing to file a homeowners insurance claim.

Many home insurers also offer discounts to homeowners with new roofs. The average home insurance premium for a home with a newly upgraded roof was just $1,487 -- $300 less than the national average. So it's worth notifying a home insurer immediately after a roof upgrade.

3. Installing sprinklers

Homeowners who want to take their fire protection to the next level should consider installing sprinklers in their home. There is an upfront cost associated with this, which will depend in part on the size of the home. But it can significantly reduce the damages and cost of a claim if a fire breaks out in the home.

It's also something home insurance companies like to reward with discounts. It won't reduce premiums as much as the items above. But it's still possible to shave about $174 off the average annual home insurance premium this way.

4. Installing a monitored fire alarm or burglar alarm

Smart home technology is becoming increasingly popular for its convenience, but it can also improve the safety of a home. Prime examples of this are fire alarms and burglar alarms that are connected to a central monitoring station. In the event of a fire or break-in, the monitoring company can alert the authorities, even if the homeowner isn't around to realize anything has gone wrong.

Monitored fire alarms reduce the average annual homeowners insurance premiums to $1,629. And monitored burglar alarms bring the average annual premium to $1,644 per year, according to our data.

5. Upgrading home systems

Older homes could benefit from updating electric, heating, and plumbing systems. This could help these systems run more smoothly and reduce the risk of disaster due to faulty wiring or old plumbing.

There wasn't a significant premium difference between the three above upgrades. Each should reduce the average homeowners insurance premium to somewhere between $1,665 and $1,676 per year.

Choose insurers carefully

The above moves are all viable ways to reduce homeowners insurance premiums. But not all companies offer all of these discounts. Homeowners who plan to pursue a specific discount -- adding sprinklers, for example -- should verify that their insurance company offers a discount for doing so. If not, they may want to get quotes from other companies that offer sprinkler discounts to see how cost savings might stack up.