Just like a lot of other expenses, insurance is also subject to rate increases. This might have you asking, “how can I lower my homeowners insurance?” There are a few ways to do this that you might not have thought about! First let’s see what might have affected the rate hike in the first place…
Why Did my Insurance Go Up and What Can I Do About It?
If you are one of the unfortunate homeowners with an insurance rate hike, know that you are not alone and that there are solutions! Let’s take a peek at what might be going on to make your rate go up.
Inflation
It’s that frustrating word that we keep tossing around. Your dwelling coverage depends on the current cost of construction materials and labor costs. Those are up right now, so your premiums could be higher too.
Solution? The bad news is, sadly, there isn’t much we can individually do about it. The good news is that it won’t be this high forever.
Older Home in Need of Updates
Renewal of insurance time can bring inspections and discoveries. The age of your roof or plumbing, for example, might raise your rates every 10-5 years to cover the higher risk of claims.
Solution? When you replace any claim prone elements, be sure to inform your agency right away! It could help lower your rate.
More Natural Disasters
The home insurance industry has seen more claim payouts than ever before in the last few years. For that reason alone, they have started charging more for those that live in high-risk areas that are prone to natural disasters like wildfires or hurricanes.
Solution? If you are in a high-risk area and don’t want to pay for it, consider moving. We know that’s a rough choice, but in addition to saving money, it could also save your life.
Attractive Nuisances
Do you have a big dog or a trampoline or a fountain? Some insurance companies label things like these as liabilities. The thing they all have in common are that they could “attract” children to the yard. If any child gets hurt on the trampoline or in a swimming pool, the landowner could be at fault.
Solution? Sadly, the only solution is not to have these “nuisances” or prepare to potentially pay extra for them. Learn more here about how local laws might rule on some of these issues and what could be seen as a nuisance.
A Lower Insurance Score
Your insurance score is made up of the statistical probability that you, as a homeowner, will file a claim, along with your credit score and other factors. Your premium will be higher if your score is low.
Solution? Work on raising your credit score and update your home so that you do not have to file claims as often.
Other Things You Can Do to Lower Your Homeowner’s Insurance
None of these solutions sound doable. There are other ways to lower your insurance that might help!
Go Home Insurance Shopping
Sometimes you just need to take another look around and see what other companies are charging. Greg Fay Insurance has independent insurance agents that can shop for you to see what rates will work and save you money. If it’s been a while, speak to an agent today! There could be better coverage or rates somewhere else!
Check Into Discounts
There are always ways to get a discount! You just have to ask. Check into these things:
- Newly Built Home or First-Time Homebuyer
- Loyalty to the same Insurer for 5+ Years
- Multiple Policies (Bundling Home + Auto)
- Protective Devices such as an Alarm System
- Senior Citizen Discount
Increase Your Deductible
This might sound a little like gambling, but if you take a chance on not having to file a claim for a while, it might be worth it. This is a good idea if you recently replaced your roof, if your home is fairly new or if you’ve made significant updates.
Bottom Line for How to Lower My Homeowners Insurance
Don’t be afraid to be curious about this and any other insurance subject. Asking questions is often encouraged for homeowners young and old. Times are always changing, along with new policies and processes. We at Greg Fay Insurance love answering these questions! If you are confused about your policy and want to know how you can save money, let’s sit down and figure it out. Contact us today!
