If you’ve gotten your homeowners insurance renewal recently, odds are good your rate went up. And that applies to all companies across the board.
There are a variety of reasons for rising rates with extreme weather events leading the list. In 2022, the U.S. experienced 18 separate weather events costing $1 billion or more. That places 2022 in a tie with 2017 and 2011 for the third-highest number of billion-dollar disasters in one year.
As weather-related damages go up, so does the cost of insurance overall. But there are other factors. Inflation made the cost of just about everything go up this past year. Though it has leveled off, costs of goods and services generally have not gone down.
Lumber and other construction materials have spiked in price due to less availability, making the costs to repair and build homes more expensive. If you have a claim and need to replace furniture or other household items, they all probably cost substantially more now than when they were purchased. At the same time, there's been an increase in the cost of skilled labor, combined with the construction industry being down about 200,000 skilled trade workers.
So is there any way to lower your premiums?
- Take steps to prevent losses. Ask us about any savings you might qualify for as a result of the preventative measures you take. For example, your policy might offer premium discounts for smoke detectors, fire alarms water sensors, interior sprinkler systems and smart home protection devices.
- Review your insurance. Ask us to review your current coverage to ensure you’re getting the customized protection you need. Make sure all home improvements are accounted for. Cancel or reduce coverage you no longer need. And make sure you know what items in and around the house are or are not covered - and what types of losses are or are not covered.
- Increase your deductible. A higher deductible will likely reduce your premium. Just remember to have enough savings to cover your deductible should you experience a loss.
- Bundle your coverage. There are discounts available when you purchase more than one policy from the same carrier. Home and auto are commonly bundled for a discount, but discounts may also apply to boat, valuables and personal umbrella protection and other specialty coverages.
- Avoid potential problems. Keep your trees trimmed, being especially aware of overhanging branches. Never barbeque in your garage or next to your home. Keep your garage free of clutter and don't store flammable materials in it. Acts of nature generally can't be prevented. But acts of carelessness can!
We want to do everything we can to help you save on your homeowners policy while still assuring you've got the right coverage for your circumstances. If you'd like to review your homeowners policy, remember, we're always just a call or text away.