Owning a home is a significant investment and protecting it with homeowners insurance is a wise financial decision (and usually required!). However, rising insurance premiums can be a concern for many homeowners. Let’s take a look at some things you should know for keeping your premiums in check.
📉 Claim-Free is the Way to Be: Insurers are placing more emphasis on prior claims experience than ever before. A history of claims can lead to higher insurance premiums. Some claims are unavoidable, and every day we help our customers with these situations. Not only does being claim-free help your premiums, it also gives you more options. Which leads us to…
🏡 You Might Not Want to Submit That Claim: On average, a homeowners claim will add $400-650 per year(1) and typically last 4-5 years. If you have multiple claims, the amount could be even higher, and it could keep you from accessing companies that don’t write individuals with more than 2 claims. Historically most people submitted home claims without thinking much about it, but it’s important to talk through each situation with your agent.
🐕🦺 Not all Claims are Created Equal: Water damage, dog bites, and theft are claims that tend to be judged more harshly because they can indicate future claims. Insurance companies might view these as claims that are more in your control or might indicate the condition of your home.
🛒 Shop, Shop, Shop Around (…for the Best Rates): One of the most straightforward ways to lower homeowners insurance premiums is to shop around and compare options from different insurance companies. Independent agents work with multiple companies to save you time and money by evaluating multiple companies at the same time- think Expedia or Kayak.com vs shopping each airline for your flight!
👆Raise Your Deductible: By opting for a higher deductible, you’re taking on more risk in the event of a claim, and insurers usually reward you with lower premiums. Work with an agent to choose a deductible that aligns with your financial comfort level.
💳 Maintain a Good Credit Score: Insurers usually use (soft) credit scores as a factor in determining premium rates. Maintaining a good credit score can positively impact your homeowners insurance rates. Paying bills on time, reducing outstanding debts, and monitoring your credit report for inaccuracies are key steps in building and maintaining a strong credit history.
🏠➕🚗🟰 ⬇️ 💵 Package Home and Auto Insurance: Many insurance providers offer big discounts for bundling home and auto insurance policies. Some companies are now requiring your insurance be bundled or packaged. It’s worth exploring the options available from different insurers to find the most cost-effective solution.
🥷 Improve Home Security: Investing in home security measures, such as burglar alarms and smoke detectors, can make your home less risky in the eyes of insurers. Some insurance companies offer discounts for homes with enhanced security features, so consider making these improvements to potentially lower your premiums.
👨⚕️ Review and Update Coverage: Regularly review your homeowners insurance policy with your agent to ensure it aligns with your current needs. If you’ve made home improvements or upgrades, such as installing a new roof or upgrading plumbing and electrical systems, inform your agent! This could result in lower premiums as these enhancements may reduce the risk of claims.
🙋🏽🙋♀️Work with a Good Agent! It’s in your best interest to work with an agent that can provide you options and advise you on how to make the best decision for you or your family in this challenging environment.
Give us a call at Allison Insurance and speak with one of our friendly and knowledgeable staff to understand the best options for you and your family!
Email our team to schedule a call at team@allisonagency.net
Or Call: 205-738-7444
(1) https://www.bankrate.com/insurance/homeowners-insurance/does-homeowners-insurance-go-up-after-a-claim/#how-much-does-your-homeowners-insurance-increase-after-a-claim
