Can You Negotiate a Homeowner Insurance Quote?

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On average, homeowners pay $1,854 per year for insurance to cover their houses, according to a Forbes Advisor analysis. That’s a significant impact on your budget, which is why it’s normal to look for ways to lower the cost. If you’re wondering whether you can negotiate a homeowner insurance quote and if there’s anything else you can do to reduce the price, here’s what you need to know.

Is It Possible to Negotiate Homeowner Quotes?

Generally, negotiating homeowner insurance quotes isn’t an option. Insurers use specific calculations to determine the pricing based on the overall risk level. Many companies use proprietary formulas to assess risk. However, others rely on algorithms that use artificial intelligence and machine learning to set premium prices.

Once an insurer does a calculation based on accurately provided information from you, the price on your quote is relatively rigid. But that doesn’t mean there aren’t steps you can take to secure a better price; it just doesn’t involve negotiating.

What Else Can You Do to Lower the Rate?

There are a few ways you can get a lower rate on your homeowner insurance quote. First, you can adjust your coverage or raise your deductible. However, that usually means taking on higher out-of-pocket expenses if you file a claim, which isn’t always ideal.

Shopping around can also lead to lower rates, as not all insurers use the same calculations to assess risk and assign pricing. Avoiding filing claims unless they’re genuinely necessary allows you to avoid financial penalties associated with having past claims, so that can be wise, too.

Having a higher credit score also leads to lower rates. Mainly, that’s because you’re viewed as less financially risky and potentially less likely to file claims. Otherwise, it’s wise to explore the various types of homeowner insurance discounts that are available. If you want to know what to ask for, the most widely used ones are discussed below.

Common Types of Discounts

Homeowner insurance companies offer a wide range of discounts to customers. Some are based on the features of the property. Others are provided based on details about the policyholder, such as their age or occupation.

Here is a list of the most common types of discounts available when you request a homeowner insurance quote:

  • Multi-Home
  • Multi-Policy or Bundle
  • Fire Prevention
  • Break-In Deterring
  • Security System
  • Loyalty
  • New Customer
  • Occupation-Related
  • Pay-in-Full
  • New Construction
  • Senior
  • Claims-Free
  • Gated Community
  • Neighborhood Watch
  • System Upgrade or Renovation
  • Disaster Preparedness
  • Online Quote and Purchase
  • Autopay

In some cases, insurers apply discounts to homeowner insurance quotes automatically based on information they have about the applicant and the house. For example, since applicants provide birth dates on their applications, a senior discount is typically applied without further action on the applicant’s part.

With others, customers have to request the discounts explicitly, as the insurer won’t inherently know who’s eligible. For instance, you might need to mention that there’s a neighborhood watch in your area or that your roof is newer in order to obtain these discounts.

At times, applicants need to submit proof of eligibility for a discount to an insurer. For example, if you’re asking for a military discount, you might need to provide proof of your service. If documentation is required before a discount is applied, the insurer will let you know what to send to make sure you get the deal.