 | If you are a homeowner, you know very well about the increase in homeowners insurance nationwide. The average home insurance premium increased 21% between May 2022 and May 2023, according to recent analysis by insurance marketplace Policygenius. In some states, the jump was 30% or more. Weather is the main reason insurance rates are climbing, but inflation is also playing a role, said Daryl Fairweather, chief economist at Redfin. "When inflation is on the rise, it basically means that the cost of everything is going up," Fairweather told CBS News. "And that includes the cost of maintenance for homes, the cost of remodeling homes. And that goes into the equation for home insurance." |
What can homeowners do? Insurance Information Institute shows us 12 ways to lower your homeowners insurance costs below. Click the link above for the full article.
- Shop around.
It'll take some time but could save you a good sum of money. Ask your friends, check the Yellow Pages or contact your state insurance department. Call us here at Suburban and we can research different carriers and policies and get the best discounts for you. - Raise your deductible.
The higher your deductible, the more money you can save on your premiums. Nowadays, most insurance companies recommend a deductible of at least $500. If you can afford to raise your deductible to $1,000, you may save as much as 25 percent. - Don’t confuse what you paid for your house with rebuilding costs.
The land under your house isn't at risk from theft, windstorm, fire and the other perils covered in your homeowners policy. So don't include its value in deciding how much homeowners insurance to buy. If you do, you will pay a higher premium than you should. - Buy your home and auto policies from the same insurer.
Some companies that sell homeowners, auto and liability coverage will take 5 to 15 percent off your premium if you buy two or more policies from them. But make certain this combined price is lower than buying the different coverages from different companies. - Make your home more disaster resistant.
Ask us what steps you can take to make your home more resistant to windstorms and other natural disasters. You may be able to save on your premiums by adding storm shutters, reinforcing your roof or buying stronger roofing materials. Older homes can be retrofitted to make them better able to withstand earthquakes. In addition, consider modernizing your heating, plumbing and electrical systems to reduce the risk of fire and water damage. - Improve your home security.
You can usually get discounts for a smoke detector, burglar alarm or dead-bolt locks. Some companies offer to cut your premium if you install a sophisticated sprinkler system and a fire and burglar alarm that rings at the police, fire or other monitoring stations. Before you buy such a system, find out what kind your insurer recommends, how much the device would cost and how much you'd save on premiums. - Seek out other discounts.
Companies offer several types of discounts, but they don't all offer the same discount or the same amount of discount in all states. For example, since retired people stay at home more than working people, they are less likely to be burglarized and may spot fires sooner, too. Retired people also have more time for maintaining their homes. If you're at least 55 years old and retired, you may qualify for a discount at some companies. - Maintain a good credit record.
Establishing a solid credit history can cut your insurance costs. Insurers are increasingly using credit information to price homeowners insurance policies. In most states, your insurer must advise you of any adverse action, such as a higher rate, at which time you should verify the accuracy of the information on which the insurer relied. Check your credit record on a regular basis and have any errors corrected promptly so that your record remains accurate. - Stay with the same insurer.
If you've kept your coverage with a company for several years, you may receive a special discount for being a long-term policyholder. Some insurers will reduce their premiums f you stay with them for three to five years or more. But make certain to periodically compare this price with that of other policies. - Review the limits in your policy and the value of your possessions at least once a year.
You want your policy to cover any major purchases or additions to your home. But you don't want to spend money for coverage you don't need. If your five-year-old fur coat is no longer worth the $5,000 you paid for it, you'll want to reduce or cancel your floater (extra insurance for items whose full value is not covered by standard homeowners policies such as expensive jewelry, high-end computers and valuable art work) and pocket the difference. - Look for private insurance if you are in a government plan.
If you live in a high-risk area -- say, one that is especially vulnerable to coastal storms, fires, or crime -- and have been buying your homeowners insurance through a government plan, you should check with an insurance agent or company representative or contact your state department of insurance for the names of companies that might be interested in your business. - When you’re buying a home, consider the cost of homeowners insurance.
You may pay less for insurance if you buy a house close to a fire hydrant or in a community that has a professional rather than a volunteer fire department. It may also be cheaper if your home’s electrical, heating and plumbing systems are less than 10 years old. If you live in the East, consider a brick home because it's more wind resistant. If you live in an earthquake-prone area, look for a wooden frame house because it is more likely to withstand this type of disaster. Choosing wisely could cut your premiums by 5 to 15 percent.
If you are considering lowering your homeowners insurance costs, give us a call so we can review your policy and any potential changes in your house or household or other discounts that might now apply to you. We’re always here for you. Reach out at 201-796-1881.
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