As much as we don’t like it, most homeowners have been or can expect to pay higher premiums in 2023. Most people don’t understand why their premiums are rising and don’t know what to do about the extra money they must pay for their homeowner’s insurance. If you’re in this predicament, or one similar, keep reading to find out why premiums are so high and what you can do about it.
According to CNBC, inflation is one of the leading causes of the noticeable increase in home insurance premiums. The cost of insurance premiums is directly related to how much it would cost if the house needed to be rebuilt or severely renovated. Because the cost of building materials has gotten so high because of inflation, rebuilding costs have also increased.
When geographical areas sustain damage due to severe weather, the insurance premiums in that area will undoubtedly rise. Unfortunately, the United States has seen some intense weather over the past few years, causing insurance premiums all over the nation to grow.
Lack of Labor
Another significant reason the cost of your home and contents insurance is so high is the need for more willing workers skilled in specific industries. There are way more jobs now than people willing to work them, so insurance premiums are rising due to the high worker demand.
Sure, all of those reasons seem hard to control, and they are, but there are things that you, as a homeowner, can handle.
The first step you can make is to take preventative measures against certain disasters. Installing fire and smoke alarms, water sensors, and home protection devices are just a few ways to prevent certain events from happening in your home. Taking these measures shows the insurance company that you’ll do what it takes to protect your home and their investment.
Review Your Insurance
Your next step is to ensure you know exactly what you’re currently paying for. Call your agent and request a review of your current policy. Make sure you’re getting what you need, and you can remove what you don’t want to pay for. Many people end up paying more than they should for insurance because they’re unaware of everything they’re paying for.
Look Into Bundles
There are a lot of insurance companies that will lower premiums if you bundle your home insurance with other policies. For example, you could reduce your bill if you bundle your home and auto insurance with your boat or travel insurance. Call your agent today to see if bundling your insurance is possible with your policy.
Increase Your Deductible
Increasing your deductible is the opposite of decreasing your bill, but it works. Increasing the deductible will cause you to pay more if something happens to your home, but it will allow you to spend less on your monthly bill. This option isn’t for everyone, but it’s an option nonetheless.
There are a lot of companies that offer discounts on home insurance premiums. Students, the elderly, and long-term customers are a few people who can be eligible for discounts on their home insurance policies.
No one wants to pay rising costs on a home they’ve lived in for 10 or 20 years. In fact, no one wants to pay rising costs…period. If you’re fighting your insurance company to protect your home, follow these simple tips to make your monthly bill a little more affordable during these pressing times. After all, what’s the point of having a beautiful home if you can’t afford to insure it? If you’re facing high costs to your home insurance premium, call an agent today to see what they can do to help.