Unfortunately, the cost of homeowners insurance is on the rise. However, with the increase in extreme weather events caused by climate change, it is more important than ever to protect valuable assets like your home.
Of course, that same weather is part of the reason why home insurance costs have skyrocketed. Kiplinger said recent cost increases are “largely due to an increase in insurance claims due to flooding and other natural disasters,” in addition to other factors, including: “Inflation and soaring house prices,” and “industry restructuring and disruption as insurance companies withdraw from entire markets.”
The combined impact of these factors has resulted in “home insurance rates increasing cumulatively by 37.8% since 2019, according to LendingTree,” Kiplinger said. So how exactly can you save this non-negotiable amount?
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Increase home security
A large portion of the cost of home insurance is due to risk, so taking steps to minimize your home’s exposure to the aforementioned risks can save you money. You don’t necessarily have to spend a lot to save money. “Even the basics can save you money when it comes to home security,” says NerdWallet.
Related updates could include “installing smoke detectors, burglar alarms, or deadbolt locks in your home,” NerdWallet said. “Adding a comprehensive sprinkler system and actively monitored fire and burglar alarms can potentially save you even more money.”
Rate the home improvements you have made
If you’ve made improvements to your home since you first took out your insurance, make sure you get proper credit for them.
For example, “installing a new roof or renovating an existing roof to make it more resistant to storm damage may result in a reduction in your premium,” Bankrate said. Additionally, NerdWallet said installing features such as “storm shutters” and “upgrades to aging plumbing or electrical systems” could lead to insurance savings.
Bundle home insurance and car insurance
Another way to save money is to buy multiple policies from the same home insurance company. The Insurance Information Institute states, “Many companies that sell homeowners insurance also sell auto insurance and umbrella liability insurance,” and “purchasing multiple policies from the same insurance company can reduce your premiums.” There is a possibility.”
Ask what discounts are available
You may not know what discounts your insurance company is offering unless you inquire beforehand. As mentioned above, many insurance companies offer “safety discounts” such as “smart smoke detector installations” and home security systems, and you may also receive “home improvement discounts.” Bankrate said.
Bankrate says that if you’ve been with your insurance company for a while and want to lower your premiums without switching, you can receive so-called loyalty discounts. You may also be able to save money by using certain payment options or types, as some insurance companies offer discounts to those who pay their premiums in full or choose automatic payments.
Certain categories of homebuyers are also eligible for discounts. For example, Bankrate says, “Some insurance companies offer discounts to first-time homebuyers or new home buyers,” and many insurers offer discounts to “current or former military personnel” or “other They also offer discounts for “occupations.”
Explore and compare offers
Perhaps the most important part of getting a reasonable price for homeowners insurance is taking the time to research different products and compare prices. The Wall Street Journal says, “While it may be easiest to renew with your existing insurance company, take the time to get quotes from at least a few other insurers.” said.
Are you comfortable doing the homework yourself? “You can also hire an independent insurance agent (one who is not employed by a specific insurance company) to do the work for you,” the paper says, adding, “They will shop around and recommend the best insurance according to your budget.”
“Even if you are happy with your current insurance company or have seen minimal increases in premiums, an independent agent can help you find options with lower rates for the same amount of coverage. “You might be able to find it,” he said. Pat Howard, home insurance expert at Policygenius, told Barron’s.
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