How to Reduce Homeowners Insurance Costs Without Sacrificing Coverage

By Travis Christy, White Coat Insurance

Who wouldn’t jump at the chance to lower their insurance costs? Saving money on premiums is something everyone can appreciate, and sometimes, all it takes is a little effort and a reminder to add “check insurance rates” to your to-do list. But as a busy physician, finding the time to ensure you’re getting the best deal can feel impossible.

Are you leaving money on the table by sticking with your current policy? At The White Coat Investor, we’ve partnered with Farmers Insurance Choice, a service that simplifies the process of shopping around. With access to all major carriers, you can quickly compare rates, potentially saving money that could be better spent elsewhere.

This matters because, as a physician, your insurance needs are often more complex than the average homeowner’s. High-income households, like those of many medical professionals, often face higher insurance premiums due to the value of their homes and vehicles or the need for specialized coverage. Yet studies show that 60% of US homes are underinsured by an average of 20%, meaning many homeowners pay premiums without adequate protection. Additionally, auto insurance rates have surged 26% since 2023, with luxury vehicles owned by many physicians further inflating costs. Despite these rising expenses, only a small fraction of high-income households review or adjust their policies regularly.

Between your busy schedule and patient care, it’s easy to assume your current policy is sufficient. However, you may own a higher-value home, need additional liability protection, or require specialized riders for a home office or medical equipment. It may be a good idea to consider taking a moment to review your policies ensuring you have the right coverage. Partnering with Farmers Insurance Choice simplifies this process, and it can help physicians avoid overpaying and ensure every dollar spent goes toward meaningful protection.

Here are some ideas to put more dollars in investments by simply asking for better deals and shopping around.

Bundle Policies for Better Discounts

Bundling your homeowners, auto, and umbrella insurance with the same provider can save money and simplify policy management and claims. Many companies offer multi-policy discounts ranging from 10%-25%. For instance, Farmers Insurance, Progressive, Travelers, and Nationwide all provide discounts when you combine home and auto policies. Combining these policies can also provide additional perks—like a single deductible for claims affecting multiple policies, such as storm damage to both your home and car.

Some insurers even offer discounts or tailored packages specifically for physicians, including higher liability limits or riders for high-value items like medical equipment or luxury vehicles. By bundling, you can save time, reduce costs, and ensure comprehensive coverage without the hassle of juggling multiple insurance providers.

More information here:

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Increase Your Deductible Strategically

Physicians may be in a great position to consider higher deductibles on homeowners, auto, and umbrella insurance policies. Choosing a higher deductible can lower monthly premiums and lead to significant savings over time. For those who can comfortably “self-insure” a little more and cover a higher out-of-pocket cost in the event of a claim, this strategy can be both practical and cost-effective.

To figure out if a higher deductible is the right choice, start by looking at the potential savings. Ask your insurance provider or the WCI-vetted insurance providers for quotes with different deductible options and calculate how much you’d save each year. Then, consider your financial situation—do you have enough in savings to handle a larger deductible if needed? If you rarely file claims, the savings you gain from a higher deductible could easily outweigh the added risk.

Calculate the break-even point. For example, if increasing the deductible saves $500 a year and adds $2,000 to out-of-pocket costs, it would take four years of premium savings to break even. If that timeline works, it may be a smart move.

Take Advantage of Professional Discounts

Most insurance companies offer exclusive discounts to professionals through organizations and/or associations. For example, the AMA and ADA negotiate group rates for their members, making it easier to find discounted homeowners, auto, and umbrella insurance options. These discounts can help save money while ensuring the coverage fits the need.

Followers of The White Coat Investor have a way to take advantage of group savings. By calling our vetted insurance partner, Farmers Insurance Choice, WCIers can access exclusive discounts and work with agents who understand the unique needs of the community. They’ll help you find policies tailored to unique situations, ensuring you're getting the best rates and the right coverage for your career and lifestyle. Why pay more than what’s needed when these options are available?

More information here:

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Enhance Your Home’s Security to Lower Premiums

Adding security features to a home is a smart way to protect what matters most while saving money on homeowners insurance. Installing smart home security systems, fire alarms, or water leak detectors can qualify for discounts from many insurance companies. These upgrades lower a home’s risk, which means insurers are often willing to reward with lower premiums.

While the initial cost of these systems might seem like a big investment, the savings over time can quickly add up, making it worth every penny. For physicians with higher-value homes and possessions, it’s an easy way to add an extra layer of protection while keeping more money in your pocket.

Avoid Claims for Small Repairs

Handle minor home repairs without relying on your insurance. Avoiding small claims for things like a leaky faucet or minor roof damage can prevent your premiums from increasing. Insurance providers often raise rates even after a single claim and view those who make claims as a higher risk. By using savings for minor expenses, you can preserve your policy for major events like fires, natural disasters, or significant structural damage. This strategy not only keeps premiums lower in the long run, but it ensures insurance is there when truly needed.

More information here:

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Shop Around and Negotiate

Shopping around for insurance is one of the easiest ways to ensure you’re not overpaying while still getting the needed coverage. Start by comparing rates and policies from insurers specializing in serving physicians and high-income earners. Use competitors' quotes to negotiate with other providers and ask if they can match or beat the rate. Highlight home upgrades, like security systems or roof replacements, to lower premiums. Bundling policies like homeowners, auto, and umbrella is another great way to save.

At The White Coat Investor, we’ve partnered with Farmers Insurance Choice and they understand the unique needs of medical professionals. Quickly get quotes and compare options by calling in.

Consider an Umbrella Policy for Additional Protection

Physicians are at higher risk for lawsuits due to earnings potential and perceived assets. An umbrella insurance policy provides an additional layer of liability protection that extends above the limits of standard homeowners or auto insurance.

For example, if a physician hosts a gathering at their home and a guest sustains a serious injury on the property, the resulting medical expenses and potential legal claims could exceed the liability coverage provided by their homeowner's insurance. In such cases, the owner could be responsible for covering the remaining costs. An umbrella policy would cover these excess amounts, protecting personal assets from being used to satisfy a judgment.

According to the Insurance Information Institute, umbrella policies typically offer $1 million in additional liability coverage at an average annual cost of $150-$300. The cost is low compared to the potential benefit received.

Green and Smart Home Discounts

Energy-efficient upgrades and smart devices can help lower homeowners insurance premiums. Many insurers offer discounts for features such as solar panels, energy-efficient windows, or smart thermostats—which reduce risks and improve home safety. Devices like water leak detectors and security systems can also qualify for additional savings.

Tax incentives, including the federal Residential Clean Energy Credit, provide up to 30% off the cost of renewable energy systems, making eco-friendly improvements more accessible. For physicians, incorporating green and smart technologies is a practical way to reduce insurance costs while increasing a home's value and efficiency.

The Bottom Line

Physicians and others can save money on homeowners insurance while maintaining the needed protection by tailoring coverage, enhancing home security, avoiding small claims, and exploring discounts for green and smart home upgrades. Regularly reviewing and adjusting policies is a simple way to ensure coverage fits changing circumstances without overpaying.

Which strategies have you employed to lower the cost of your insurance premiums? How much money have you ended up saving?

© 2025 White Coat Insurance Services, LLC; CA license #6009217; NY license #1758759/Exp. date: LA1758759 6/30/2025; Principal place of business: PO Box 520421, Salt Lake City, UT 84152.

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