Introduction:

Unfortunately, in 2024 there is a slim to ZERO chance your home insurance rates will not increase. First, we will address why, and then I have a few ideas that you can look at to potentially help. 

The Issue:

Here is the Readers Digest version of what is going on in the Insurance industry. Just like every household in the US Inflation has taken its toll on the Insurance industry – with a few wildfires and major storms sprinkled in. Even though there has been some easing, it can take insurance companies a few years to catch up with the market due to having to wait for renewals to process and getting the Individual States' blessing on every company's rate increase.  While we wait for the Insurance Companies to get caught up, the following are some things to consider that may help lower your premiums:  

 Idea 1:

Age of your roof. Most insurance companies start to get excited about a roof that is 10 years old. At 15 years old, now the company looks at ways to limit their risk – typically by increasing the premium. 20 years and older, I can share story after story about customers getting an uncomfortable letter from the Insurance company either denying coverage at renewal or saying “fix it by x date” or else. 

In most cases when a roof gets to a point where repair, replacement, or maintenance – like moss removal - is needed it is a good idea to address it as soon as possible. Roof repair/replacement typically will save you thousands over time in insurance premiums.  

Idea 2:

Review the replacement cost of your home. This is a twofold recommendation. First, you want to make sure you have adequate coverage if a loss occurs. Second, you do not want to pay for coverage you can't use. For homes with newer loans banks require that the total value of the loan be insured via a Homeowners Insurance Policy. The issue is the land/lot is usually added to the dwelling’s replacement coverage. By reviewing the replacement cost via a reputable estimator most times, we can go to the Bank and negotiate the value of the land be removed from the coverage since only the dwelling is replicable.  

Idea 3:

Look at your deductible. Most insurance companies are increasing the surcharge on lower deductibles. I suggest having your insurance agent review the cost of increasing your deductible so you can see the math. Most times the savings of the higher deductible is larger over time than paying the higher deductible in a claims event. Insurance companies have started offering deductibles that are percentages of your dwelling coverage. Please just make sure you completely understand what all these options mean before you make any changes. 

Idea 4:

Have an Independent agent shop your coverage.  An Independent agent can typically compare your individual situation with multiple Insurance Companies and find you the best match.

Conclusion:

I get insurance is expensive and I am in the same boat. However, I hope this helps you navigate this rough Insurance pricing market.