Home Insurance Is Up Nearly 70%—These Tips Can Help You Save in 2026

As the new year approaches, many homeowners are resolving to save more, and few expenses have surged faster than home insurance. 

Premiums have climbed nearly 70% since 2021, with an additional 16% increase projected by 2027, according to industry estimates.

These spikes have made it financially reckless to take a “set it and forget it” approach to your policy. Instead of leaving it on autopilot, homeowners need to shop around, make smart upgrades, and rethink what they’re actually paying for.

However, “it’s important to look beyond just the price,” warns Peter Piotrowski, chief claims officer at Hippo Insurance.

That means understanding what your deductibles, limits, and exclusions actually cover—and where you might be overspending or under-protected.

We break down the most effective ways to lower your home insurance costs in 2026, according to insurance experts, legal professionals, and industry insiders. Whether you're trying to trim monthly expenses or shield yourself from long-term risk, these strategies can help you do both.

Fastest ways to drop insurance costs

If you want to cut your premiums fast, the most effective strategy is also the simplest: Shop around for the best rates.

“Shopping around is the best way to save money, especially if it’s been a while since you compared quotes,” says Melanie Musson, insurance and finance expert at Clearsurance.com.

Seann Malloy, a managing partner at Malloy Law Offices, agrees, noting that “the quickest savings come through shopping their policy, rewriting coverage as opposed to just defaulting to an autorenewal.” 

Even a small change in provider or policy language could lead to savings without sacrificing coverage.

If, however, you can’t find meaningfully lower rates, you might try raising your deductible—but this strategy comes with disproportionate risk if you don’t have the emergency savings to match.

That’s because when you raise your deductible, you’re agreeing to pay more out of pocket in the event you need to file a claim. That could mean spending thousands more in the aftermath of a house fire or other catastrophic event.

That’s why Malloy says that while higher deductibles do offer “small but consistent savings,” homeowners should be realistic about what they can afford out of pocket after a loss.

You may also be able to find some savings by bundling home and auto insurance, but it doesn’t always yield the best deal.

“Some homeowners find they can save more by getting home and auto insurance from different providers. You need to compare quotes to determine which option is best,” says Musson.

Finally, many homeowners miss out on savings simply because they aren’t taking advantage of available discounts.

“You should review your discounts and update your policy whenever you become eligible for a new one,” Musson advises. “There’s no need to wait until your policy renewal date.” 

That can include home security upgrades or professional affiliations like the Wildfire Prepared Home certificate program from the Insurance Institute for Business & Home Safety. Many discounts can be added midpolicy, and every dollar helps when premiums are climbing at historic rates.

Long-term investments that keep costs stable

While quick fixes like shopping around or raising your deductible can shave dollars off your premium, the most reliable way to keep costs down over time is to invest in your home’s resilience. These upgrades can help you lower your premiums—and in some cases help you qualify for coverage you wouldn’t otherwise get.

Musson points to a new roof as one of the best investments to make. But not all roofs are created equal, and insurers often price accordingly.

“Before replacing your roof, you should find out if a certain kind of roof, like a metal roof, would make a bigger difference in your premiums,” she adds.

Garrett Maxwell of Brown’s Roofing has seen firsthand how insurers respond to impact-resistant shingles and FORTIFIED roofs.

“In a lot of cases, [you’ll get] lower premiums once the roof is documented,” he says. “We regularly see insurance carriers respond differently than they do with standard roofs.”

But roofing isn’t the only place to invest. 

“Anti-theft upgrades often result in lower premiums or discounts,” Musson notes. “Many home insurance companies have partnerships with home security companies.”

Just remember, these discounts aren’t always automatic, and you’ll likely need to contact your insurance representative and provide proof that they’ve been installed according to industry standards to see any reductions in your bill.

The same goes for mitigation features like hurricane shutters or impact-resistant windows.

“If you live in an area prone to high winds, impact-resistant upgrades ... can help lower your premium,” says Musson. But again, insurers typically require documentation—and in some cases, photos or inspections—to verify the improvements before applying a discount.

‘Savings’ that can backfire

Trimming coverage is often one of the most readily available ways to reduce your home insurance costs, but insurance experts warn that these cuts can easily backfire when you need your policy most.

One of the most common missteps homeowners make is switching from replacement cost coverage to actual cash value. With actual cash value, your payout is reduced for depreciation—meaning the amount you receive likely won’t cover what it costs to repair or replace what was lost. That gap can be significant, especially after a major claim.

Replacement cost coverage, on the other hand, pays what it takes to make repairs at today’s prices. It's a critical distinction at a time when construction costs have soared. Since the COVID-19 pandemic, the price of essential materials—like gypsum (used in drywall), lumber, concrete, and steel—has jumped dramatically, rising 14.6% in 2021 and an additional 15% in 2022, according to data from the National Association of Home Builders.

These rising input costs are part of what’s driving insurance premiums higher. But if you’ve opted for actual cash value instead of replacement coverage, you’re likely to feel those cost increases even more.

That’s why, Musson says, “If you have to file a claim, you will have an extremely hard time replacing what you lost with the settlement. It’s not practical.” 

Equally dangerous is underinsuring your home by setting coverage limits below its full value.

“If you don’t have your home insured for its full value, you risk losing the difference between the value and the insurance coverage limits,” Musson explains. “It puts your finances in a dangerous predicament.”

What to review, line by line

Before you renew your homeowners insurance—or even if you’re midpolicy—it’s worth taking the time to review your coverage line by line. According to the experts we spoke to, the biggest financial mistakes often happen not because homeowners are careless, but because they overlook what’s not covered, or misunderstand how their deductibles and limits work.

Musson points to exclusions first and foremost.

“You want to ensure you have coverage for what you need,” she says. That includes damage types your policy might not cover, like floods, sewer backups, or outdated building materials. 

Next, she says to look at your deductible.

“Many places have a separate deductible for windstorm damage, and it’s often higher than your standard deductible.”

These wind and hail deductibles are common in coastal or storm-prone regions—and many homeowners don’t realize they exist until they file a claim.

Fran Majidi, an insurance expert at Modotech, echoes that advice: “In some states, there is a separate wind or hail deductible, so be clear on how much will be deducted from a payout were you to file a claim.”

She also warns that “you may also not be covered for water backup without an endorsement,” a common and costly gap in standard coverage.

Beyond deductibles, you need to check your coverage limits, especially for valuable personal property.

“People often forget to check the limits for collections such as jewelry, artwork, and firearms,” Musson says. “If you have an extensive collection, you’ll likely need a rider or a separate policy.”

Your dwelling limit—also known as Coverage A—should be reviewed annually.

“Every year, homeowners should review Coverage A, or dwelling coverage limits, to ensure that they are not underinsured,” says Majidi. If your rebuilding costs have risen and your limits haven’t kept up, you could be left footing the bill after a major loss.

Both Majidi and Malloy stress the importance of ordinance or law coverage, which helps cover the cost of bringing an older home up to modern code after a claim.

“If you have an older home, you will not be covered for upgrades to bring the home to required local codes without ordinance or law coverage,” Majidi explains. “Ordinance or law coverage is something that is often overlooked ... but it can determine if rebuilding to code may have an unknown cost to you personally.”

In short, don’t just glance at the total premium. Dig into the details, because your financial security may depend on it.