Why Is My Homeowner’s Premium Increasing?
Maybe you have noticed that your homeowner’s premiums have increased quite a bit in recent years and wondered why? We don’t like it any more than you do, but it is due to factors outside our (or your) control.
Consider these facts:
- There has been unprecedented hail activity in the past several years in our area. Across the country in 2017 alone there were sixteen storms that caused over $1 billion in damage.
- Material costs. Did you know the cost of lumber is up 17% in just the last year? Costs of other materials used in home repair have also increased significantly.
- Larger claims. The average claim on a homeowner’s policy is now $11,000. That is 33% increase since 2011.
- Bigger homes. The typical size of a home is up 30% in the last 25 years and has spiked since 2010.
Ways you can reduce your premium:
- Consider a larger deductible. Not having to adjust smaller claims means your insurance company can pass those savings on to you. Besides, it can help you maintain claim free discounts. Check out our blog on how much you should be paying for your deductible.
- Be sure your car and homeowner’s insurance are with the same company. Most all companies allow a significant multi-policy discount.
- Maintain good credit and monitor your credit score. Virtually all insurance companies use your credit score as a rating tool, and good credit means lower rates. Find out why by clicking here.
We are pleased to speak with you at any time if you have questions about what you are paying to insure your home, and help you keep your premiums as low as possible.