If you own a home, you’re probably well aware that homeowners insurance premiums have risen dramatically in some areas and that some carriers may no longer write policies in your state. Several factors are to blame — inflation has played a role, but so have natural disasters. According to a U.N. report, the number of severe weather events nearly doubled from 2000 to 2019 compared to the previous two decades. And in 2023, California, Hawaii, and other states experienced a series of devastating storms, fires, and heatwaves, resulting in extensive damage to homes and tragic loss of life.
The claims for these and other disasters have further stressed carriers. Rising costs for building materials and labor to repair the damages combined with disasters deliver a one-two punch to premiums. And while you can’t control the weather, you can control how you maintain — and insure — your home and property. Here are steps you can take to help moderate future increases, and maybe get a rate reduction, even with fewer carrier choices available.
· Stay calm and proceed carefully. First, don’t panic and do anything rash. Your home is likely your single biggest investment and changing your coverage requires careful consideration. Switching to a policy that doesn’t provide adequate coverage can be risky — as can raising your deductible to a cost you couldn’t afford to pay in the event of a claim.
· Limit liability risks. Reduce potential liability hazards, such as trampolines and tree houses. While these might be enjoyable, they can lead to higher insurance premiums due to increased risk. Consider wind mitigation improvements and upgrades to your home such as storm shutters, reinforced doors, and roof-to-wall connections. Some insurance providers may offer discounts for such enhancements.
· Bundle for better rates. If you haven’t already bundled insurance plans — getting auto, home, and other coverage from a single carrier — this is the time to look into it. Bundling can often result in an appreciable rate discount.
· Raise the roof on your deductible. Consider raising your deductible to lower your monthly premium — but only if you have enough emergency funds set aside to pay more out of pocket in the event of a claim.
· Seek out available discounts. We Insure’s resourceful agents can help uncover any discounts you may qualify for, such as paperless communications, veteran status, or discounts for working in certain companies or industries. You might also save by upgrading or adding smoke detectors, installing a security system, and adding gutters to help prevent ice dams and foundation damage.
· Avoid filing small claims. Many carriers offer a discount that rewards policyholders who haven’t filed a claim. If a tree limb falls and breaks a window, think about paying to replace it without going through insurance. Over time, what you save on your premium might be more than what you pay for the repair.
· Consult a qualified agent. Your local We Insure agent is a great resource in a challenging insurance environment. We Insure has relationships with dozens of high-quality carriers, and our knowledgeable agents can help you sort through all the offerings to find the one that best fits your unique situation.
Don’t wait until your policy renews to act. Schedule a time to speak with your local We Insure agent well before you need to make a decision. That way, you’ll have more time to make policy changes that could save you money. And remember that the insurance industry is dynamic. It — and your insurance needs — may continue to change over time. Educate yourself and maintain a relationship with a trusted agent who can guide you in making the most informed and cost-effective decisions over time.
Source
https://www.undrr.org/publication/human-cost-disasters-overview-last-20-years-2000-2019
