Residents watch as a wildfire moves down a hill at Runkle Canyon Park on May 19, 2026, in Simi Valley, California. <\/p>\n
Kayla Bartkowski | Los Angeles Times | Getty Images<\/p>\n<\/div>\n<\/div>\n<\/div>\n
Homeowners insurance costs have risen sharply<\/a> for many people around the U.S. in recent years.<\/p>\n Policyholders looking to reduce their premiums have some relatively straightforward options, according to insurance experts. Other maneuvers require a financial investment that could ultimately save money in the long run, they said.<\/p>\n Average insurance premiums jumped 24% between 2021 and 2024, to $3,303 per year, according to a report published last year by the Consumer Federation of America, a consumer advocacy group. <\/p>\n This is roughly the pace of U.S. inflation over that period, according to consumer price index data. The U.S. Treasury Department, in an analysis<\/a> published last year, found average policy premiums outpaced the rate of inflation by 8.7% from 2018 to 2022.<\/p>\n Residents of some states pay much more than the average. For example, in Louisiana and Nebraska, average premiums exceed $500 per month<\/a>, or more than $6,000 per year, according to a February report from Bankrate. <\/p>\n<\/div>\n Premiums have increased sharply due to a host of factors, experts said, including inflation associated with repairing and rebuilding homes; climate change, which has increased the frequency and severity of storms and wildfires; reinsurance rates; and migration of homeowners to riskier areas.<\/p>\n Here are some ways homeowners can try to lower their premiums or keep them from rising as quickly, according to insurance experts.<\/p>\n<\/div>\n A damaged roof in North Port, Florida, on June 20, 2023. <\/p>\n Thomas Simonetti for The Washington Post via Getty Images<\/p>\n<\/div>\n<\/div>\n<\/div>\n While homeowners can\u2019t control the weather \u2014 or the frequency and severity of natural disasters \u2014 they have more control over how resistant their home is to hurricanes, wildfires and other events, said Peter Kochenburger, an insurance expert and a visiting professor of law at Southern University Law Center.<\/p>\n Hazard mitigation efforts can include adding storm shutters; fortifying a roof to protect against hail, wind or wildfires; and retrofitting a home to better withstand earthquakes, for example, experts said. <\/p>\n These improvements may help lower insurance premiums because they reduce the risk of damage to one\u2019s home, experts said. For example, retrofitting a home to withstand hurricane-force winds saves property owners $6 for every $1 invested, on average, according to a 2019 study<\/a> by the National Institute of Building Sciences.<\/p>\n \u201cUnfortunately, all these things cost money,\u201d said Amy Bach, co-founder and executive director of United Policyholders, a consumer advocacy group for insurance policyholders.<\/p>\n<\/div>\n Roofing and vents with wildfire-resistant features typically cost more than $5,800, while the cost of retrofitting an existing roof to be wildfire-resistant can exceed $22,000, for example, according<\/a> to a 2025 report from Laura Hausman, a senior housing policy analyst at the Bipartisan Policy Center, a nonpartisan think tank, who cited 2018 estimates<\/a> by Headwaters Economics. <\/p>\n The cost of installing hurricane shutters can range from $13,000 to more than $19,000, for example, Hausman wrote. Project costs can vary widely depending on property size, location, materials and contractors, for example, she wrote. <\/p>\n Some states, including Alabama, California, Colorado and Louisiana offer grants to homeowners to defray the cost of mitigation efforts, Hausman wrote. <\/p>\n<\/div>\n There are also relatively inexpensive things certain homeowners can do, like install moisture sensors that can help to more quickly identify leaks, Bach said.<\/p>\n It\u2019s not a guarantee that insurers will lower premiums for homeowners who undergo mitigation projects, so policyholders should \u201ccarefully research the policies of their insurer and locality,\u201d Hausman wrote. Certain states require insurers to reduce premiums for specific upgrades.<\/p>\n Ask your insurer which home improvements qualify for discounts before starting a project, according<\/a> to a March post from Liberty Mutual Insurance. <\/p>\n Also be aware: Some home improvements, like additions to your home, can add value and therefore may increase your insurance rates, according to the insurer. <\/p>\n<\/div>\n A scene from the Siena Homes development in Winchester, CA on Tuesday, May 26, 2026.<\/p>\n Robert Gauthier | Los Angeles Times | Getty Images<\/p>\n<\/div>\n<\/div>\n<\/div>\n A policy deductible is the amount that a homeowner will owe out-of-pocket before their insurer starts paying benefits for a claim. <\/p>\n Raising one\u2019s deductible is one way to lower monthly premiums, experts said. <\/p>\n Bach recommends that people carry the highest deductible that they can afford, while also accounting for how affordable that deductible is in the event of costly home damage. Homeowners must pay the entire deductible out of pocket before insurance coverage kicks in, so make sure you have enough savings to cover significant damage.<\/p>\n Most insurance companies recommend a deductible of at least $500, according to the Insurance Information Institute, an insurance industry group. Raising one\u2019s deductible to $1,000 can save as much as 25% on premiums, it said.<\/p>\n Importantly, policies may have separate deductibles for certain kinds of damage<\/a>, according to the Institute. For example, policyholders who live in states vulnerable to hail storms may have a separate deductible for hail, while those on the East Coast may have a separate windstorm deductible, it said. <\/p>\n<\/div>\n It may seem counterintuitive, but policyholders should refrain from filing insurance claims for all damage they incur to their home, Bach said. <\/p>\n \u201cDon\u2019t file small claims,\u201d she said. <\/p>\n Homeowners should try to keep their record \u201cas clean and clear\u201d as possible, Bach said. <\/p>\n<\/div>\n For example, she recommends avoiding submitting an insurance claim if it\u2019s for an amount below one\u2019s deductible, if possible. The insurer won\u2019t pay out any benefits in those instances anyway, and each claim can lead to higher premiums, she said.<\/p>\n \u201cTry your best to save your insurance for big losses you can\u2019t cover yourself,\u201d Bach said. \u201cBecause every claim could lead you to be in a higher risk category, and could lead you to pay more.\u201d<\/p>\n<\/div>\n Policyholders should also make sure they\u2019re not buying more insurance than they need.<\/p>\n \u201cTake a look at your policy limits and the value of your home and possessions every year,\u201d according<\/a> to the National Association of Realtors, a real estate industry group. \u201cSome items depreciate and may not need as much coverage.\u201d\u00a0<\/p>\n For example, if a fur coat that originally cost $5,000 is no longer worth that much, policyholders could reduce or cancel their \u201cfloater\u201d \u2014 a policy add-on to fully cover specific valuable items \u2014 to reduce premiums, according to the Insurance Information Institute.<\/p>\n Additionally, homeowners should keep in mind that they\u2019re covering a home\u2019s replacement cost, not its market value, according to NAR. <\/p>\n \u201cThe land under your house isn\u2019t at risk from theft, windstorm, fire and the other perils covered in your homeowners policy,\u201d according to the Institute. \u201cSo don\u2019t include its value in deciding how much homeowners insurance to buy. If you do, you will pay a higher premium than you should.\u201d<\/p>\n<\/div>\n Vladimir Vladimirov | E+ | Getty Images<\/p>\n<\/div>\n<\/div>\n<\/div>\n Choosing an insurer wisely may save homeowners some money. <\/p>\n For example, some companies that sell homeowners, auto and liability policies will take 5% to 15% off your premium if you buy two or more policies from them, according to the Insurance Information Institute. <\/p>\n However, policyholders should ensure the package price is lower than that of buying separate policies from different insurers, it said. <\/p>\n They may also get a discount for staying with the same insurer for many years, according to the Institute. Some insurers reduce premiums by 5% for policyholders who remain with them for three to five years and by 10% for six years or more, it said. <\/p>\n<\/div>\n Homeowners can consult consumer guides, insurance agents, companies and online insurance quote services to help shop around, according to the Institute. Experts recommend shopping periodically to check for better rates elsewhere. Savings could be $2,000 or more per year for some homeowners, according to a recent NerdWallet study<\/a>. <\/p>\n Beyond price, they should also consider service quality in the event homeowners need to file a claim, it said. The National Association of Insurance Commissioners, a regulatory group, has information to help choose an insurer, including complaints. <\/p>\n<\/div>\n Maintaining a good credit score can help lower insurance premiums, since insurers often use credit-based insurance scores<\/a> to determine policy costs, according to the National Association of Realtors.<\/p>\n Making on-time payments to lenders and reducing credit utilization rate are among the ways homeowners can boost their credit score<\/a>.<\/p>\n<\/div>\n Signage outside of new homes at the Rosemary Grove community by Taylor Morrison in Vacaville, California, US, on Wednesday, Oct. 8, 2025. <\/p>\n David Paul Morris | Bloomberg | Getty Images<\/p>\n<\/div>\n<\/div>\n<\/div>\n Homeowners may be well served by considering insurance costs when shopping for a home, experts said. <\/p>\n For one, there are just \u201csome areas people shouldn\u2019t be living,\u201d such as right on the shore, said Kochenburger, of the Southern University Law Center. <\/p>\n Of course, that doesn\u2019t deter many buyers. <\/p>\n For example, U.S. counties with the highest wildfire risk saw 446,000 more people move in than out in 2021 and 2022, a 51% increase from the two-year period from 2019 to 2020, according to a 2023 analysis<\/a> by Redfin.<\/p>\n States including Florida, Texas and Arizona \u201cexploded in popularity despite increasing risk from storms, drought, wildfires and extreme heat\u201d during that time frame, as people sought out more affordable housing, warmer weather and lower taxes amid more work-from-home opportunities during that period, according to Redfin.<\/p>\n Aside from avoiding lower-risk areas to live, there are other steps homeowners can take, experts said. <\/p>\n \u201cYou may pay less for insurance if you buy a house close to a fire hydrant or in a community that has a professional rather than a volunteer fire department,\u201d according to the Insurance Information Institute. \u201cIt may also be cheaper if your home\u2019s electrical, heating and plumbing systems are less than 10 years old. If you live in the East, consider a brick home because it\u2019s more wind resistant. If you live in an earthquake-prone area, look for a wooden frame house because it is more likely to withstand this type of disaster.\u201d<\/p>\n Choosing \u201cwisely\u201d could reduce premiums by 5% to 15%, it said. <\/p>\n It\u2019s important to remember that living in certain areas might require additional types of insurance, experts said. <\/p>\n For example, standard homeowners policies generally don\u2019t cover flood or earthquake damage, and may therefore require people to buy separate policies for those risks. <\/p>\n Homeowners can check the Comprehensive Loss Underwriting Exchange, or CLUE, report of the home they\u2019re considering to get a snapshot of the insurance claim history of the property, which can help determine some of the house\u2019s insurance-related risks, according to the Institute. <\/p>\n<\/div>\nRead more CNBC personal finance coverage<\/h2>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n
1. Fortify your home <\/h2>\n
2. Raise your deductible<\/h2>\n
3. Avoid \u2018small\u2019 claims<\/h2>\n
![\"Why](\"https:\/\/image.cnbcfm.com\/api\/v1\/image\/106068988-1565278941032man-sitting-on-porch-of-the-house_t20_nedgag.jpg?v=1592399822&w=750&h=422&vtcrop=y\")
4. Don\u2019t pay for more than you need<\/h2>\n
5. Strategize about insurers<\/h2>\n
![\"The](\"https:\/\/image.cnbcfm.com\/api\/v1\/image\/107118308-1663156354351-gettyimages-1243214676-AFP_32JC79U.jpeg?v=1706211228&w=750&h=422&vtcrop=y\")
6. Improve your credit<\/h2>\n
7. Consider insurance when buying a home<\/h2>\n
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