How can I lower my homeowners insurance rate?
According to a recent report from the National Association of Realtors, homeowner insurance premiums have jumped up 10% since last year which follows a similar increase in 2023. Premium increases were even higher in states where severe weather and wildfires were more common.
In a recent AOL.com article, Paul Burns commented on how he had spent quite a bit of money and time making sure his home was in great condition. He had added a new roof, siding and air conditioning but despite his efforts his insurance premium went up $300.
“I am like how much did it go up? And they told me and I’m like this doesn’t make sense!” Burns said in the recent AOL article. The increase came despite the fact that he had never made a claim on his policy. “No, I’ve had no claims,” he said.
Burns said in the AOL article that his insurer blamed the cost of building materials for the premium increase. “You raised my insurance almost 25% because building materials went up? That’s crazy!” he said in the AOL article.
A Few Tips to Lower Your Premium
Extreme weather, being generated by climate change is one of the main reasons homeowner insurance premiums continue to rise according to Holden Lewis with Nerdwallet. “We’re seeing more frequent disasters, and when they hit, they’re hitting more areas,” Lewis said in the AOL article.
Inflation is the other fact that is pushing up the cost of homeowner insurance. “When it costs more to repair a house, it’s gonna cost more to insure that house,” Lewis said in the AOL article.
Lewis offered a variety of tips to help lower your premium in the AOL article:
- Shop your coverage: Insurers rate risk differently which can result in dramatic premium differences. Shop your coverage on a yearly basis. Get Home Insurance Quotes Today!
- Discounts: Bundling, good student and other discounts can help lower your premium. Ask your agent to do a discount review to make sure all available discounts are being applied to your policy.
- Improve your credit score: Most states allow insurers to use credit score information to set a premium so if your credit score is less than stellar you will pay more for coverage. Work to improve you score and you should see your premium drop over time.
- Upgrade your home: Weatherproofing you home with storm resistant windows and shingles can help lower your insurance costs. Installing a monitored burglar alarm can also result in a discount. Read more on Home Upgrades That Can Lower Your Home Insurance Costs
- Raise your deductible: The higher your deductible, the lower your premium. If you can afford to raise your deductible, you should see your premium drop but always choose a deductible you can easily afford in case you have to make a claim on your policy.