Tips for Saving on Homeowner's Insurance

Last Updated: December 21, 2018

Printable version of publication: Tips for Saving on Homeowner's Insurance

Homeowner's insurance is designed to protect your home and personal property in the event of unexpected losses. It also offers protection if someone is injured on your property. Here are some tips to remember when trying to find savings on homeowner's insurance:

  • Shop Around—Compare prices and policies from several insurance companies. The premiums charged for homeowner’s insurance vary widely from company to company. It pays to take the time to shop around for the best possible value.

  • Combine Auto with Property Insurance—Many insurance companies provide a discount for carrying two or more policies with them. Consider combining your home and auto insurance with the same company.

  • Consider Actual Cash Value vs. Replacement Cost Coverage—Consider the difference between “actual cash value” vs. “replacement cost” coverage when shopping for homeowner’s insurance.

    • Actual cash value coverage will reimburse you for the cost of the property at the time of the claim taking into account depreciation, minus your deductible. It is important to account for depreciation when considering this coverage option. This may result in a lower claim payment than you expect.

    • Replacement cost coverage will reimburse the full value of the damaged property, generally after you purchase the new item and submit your receipts. While the upfront cost is greater, you are more likely to receive accurate compensation for your possessions.

  • Increase Your Deductible—The deductible is the amount you must pay out-of-pocket before the insurance policy pays on a claim. Increasing your deductible will likely lower your premium.

  • Maintain Good Credit—Most insurance companies use some credit information to price homeowner’s insurance policies. Protect your credit standing by paying bills on time and keeping your credit balances low. Check your credit report on a regular basis and promptly correct any errors.

  • Install Safety/Security Devices—Smoke detectors, alarm systems, fire extinguishers, and deadbolt locks may help prevent or minimize property damage or loss. Many companies provide discounts for these security measures. Always report home security improvements to your insurance agent or insurance company and ask about possible discounts.

For more information on buying homeowner’s insurance, review the Office of the Commissioner of Insurance’s (OCI) Consumer’s Guide to Homeowner’s Insurance available on OCI’s website. If you have a specific complaint about your insurance, refer it first to the insurance company or agent involved. If you do not receive satisfactory answers, contact OCI.

To file a complaint online or to print a complaint form:
OCI's Website

(608) 266-0103 (In Madison) or 1-800-236-8517 (Statewide)

Mailing Address
Office of the Commissioner of Insurance
P.O. Box 7873
Madison, WI 53707-7873

Please indicate your name and phone number.

Deaf, hearing, or speech impaired callers may reach OCI through the WI TRS.