How to Save Money on Your Home Insurance in 2025
Your home is probably your most valuable asset and your home insurance helps you manage risks like fire, natural disasters, and theft. As you look ahead to 2025, start thinking about how to save money on your home insurance.
Home insurance is expected to go up in 2025 due to higher claims costs (as a result of increasing frequency of natural disasters) and higher costs for repairs and replacements. High home valuations can also affect home insurance premiums because the cost of replacing, repairing, and rebuilding has gone up.
Did you know? You can better control your home insurance premium by using a “how to save strategy” and taking steps to reduce any risks your home can face.
Do you know how your home insurance premium is calculated?
Insurance companies start by estimating your home’s value. They calculate how much it would cost to repair or replace your home and its contents based on:
- Type of house
- Size of your home
- Age of your home and its overall condition, such as roof and windows
- Location
- Proximity to a fire hydrant (the closer the better)
- Any past claims
- Type of electrical wiring and heating
- Do you have a finished basement?
- Replacement cost of contents
- Cost to rebuild
Spend money to save money
Everyone likes to save money on their insurance and there are easy ways to do that like bundling your car and home insurance and asking for discounts.
Roof
How old is your roof? A new roof could help decrease your home insurance costs, especially if it’s more than 20 years old. An old roof can leak and increase the risk of water damage inside your home. Some insurers may offer a discount if you upgrade to a metal roof or recycled rubber roof.
Hot water tank
How old is your hot water tank? If it’s more than 10 years old, your insurer may require you to replace it to avoid leaks and water damage and to provide proof that it has been replaced.
Wiring and plumbing
Insurers may insist that wiring is up to code. Old homes that have galvanized or lead pipes may experience more leaks and water damage. You may be able to save on your home insurance by updating your plumbing. New wiring and plumbing can help keep your house safer from fire and interior flooding.
Monitored security alarm system
A home may be less attractive to thieves if it has a security system that’s monitored 24/7. If you install a video doorbell and security cameras around your property, ask if this qualifies for a home insurance discount.
Water alarm/ water mitigation system
A flooded basement can be extremely expensive to put right. Installing a sump pump, a water shut-off system, or a water sensor alarm could result in an insurance discount.
With extreme weather incidents increasing, add sewer backup and overland flood insurance coverages to your policy for financial protection
Sewer backup insurance
Sewer backup insurance coverage can be added to your home insurance policy. It will help pay for repairing or replacing damaged parts of your home and personal property.
How much coverage you need is determined by whether your basement is finished and whether you store valuable property there. Sewer backup insurance also covers additional living expenses, such as a hotel, if your home is uninhabitable during repairs following a sewer backup.
Overland flood insurance
Overland flood insurance covers damages resulting from water entering your home from outside due to excessive rainfall, overflowing rivers, or melting snow. (Damage from freshwater not saltwater)
This type of insurance is usually widely available for almost all homeowners, condominium owners, and tenants. However, it’s not always available for high-risk areas but if it is available in your area, you should consider adding it to your home insurance policy.
Insurance companies do not typically offer coverage for floods caused by storm surges, tsunamis, or tidal waves.
Here are other ways that you can save
Pay your annual home insurance premium in one shot
Some insurance providers offer a small discount if you pay your home insurance in one lump sum yearly payment, rather than monthly.
Consent to a credit check
Consenting to a soft credit check will help determine the best price and level of discount for your home insurance. A soft credit check reviews information from your credit report without affecting your credit score.
Loyalty
Some insurers may offer savings to loyal customers. You may also qualify for a discount if you’ve had home insurance coverage continuously in effect for a specific number of years.
Are you a mature homeowner? Mortgage free? You may be able to get discounts.
Get professional insurance advice regularly
Talk to your home insurance expert annually to make sure your insurance coverage is tailored to your home. Inform you home insurance expert about any upgrades so that your insurance coverage can be possibly adjusted.
Did you know? When you bundle your home insurance and car insurance with Western, you can get a discount and you’ll get one bill, not two, every month.
Here’s how it’s easy to switch your home insurance policy
You’ll need to provide detailed, accurate, up-to-date information about your home, such as square footage, how your home is heated, and if there are any recent renovations.
Don’t forget to let your mortgage lender know that you are switching home insurance providers.
You can switch your home insurance with an open claim, but your claim stays with the insurance provider that handled your claim when the event occurred, even if you switch to a different insurance company.
Speak to a Western Financial Group home insurance expert about switching your home insurance and how you may be able to save on your premium.
