Ways to Reduce Your Homeowners Insurance Premiums
Posted on 04/07/2022 at 01:10 PM by Town & Country Insurance
Homeowners’ insurance premium rates have risen significantly since the pandemic and are likely to keep increasing. It’s important for consumers and policymakers to understand why this is happening and why it’s likely to continue.
From 2017 through 2021, premium rates are up 12.2 percent on average nationwide, according to S&P Global Market Intelligence data. Much of this can be attributed to pandemic-related supply-chain issues and labor shortages driving up the cost of home repairs and replacement.
But, longer-term trends are in play – most significantly, more than 40 years of rising natural catastrophe losses. Average insured cat losses are up approximately 700 percent since the 1980s, due in part to increased frequency and intensity of events and to population shifts into disaster-prone regions. The brief cites U.S. Census Bureau data showing that the number of housing units in the United States has increased most dramatically since 1940 in areas most vulnerable to weather and climate-related damage.
It also shows that homeowners’ insurance premium rates have generally trailed increases in home replacement costs. As a result, homeowners’ coverage has been an unprofitable business line for insurers in recent years – an unsustainable long-term trend that has been exacerbated by the pandemic’s disruption of the supply chain and the global economy.
Download the Triple - I Issues Brief; Trends and Insights: Drivers of Homeowners' insurance rate increases (PDF) for additional information.
Here are a few ways you can save on your insurance policy
You may not be able to avoid a rate increase on your homeowners insurance, but there are still ways to potentially curtail your cost.
Bundling your home, auto, and umbrella policies may allow you to save on your insurance policy significantly. If you are currently insured with multiple carriers, ask your Town & Country Insurance Agent about bundling your policies.
Perform routine maintenance: Reduce the potential of a claim by ensuring your home systems are operating properly. Some homeowners insurance companies offer a discount for installing smart home technology to alert you of potential damage in your home.
Make your agent aware of any changes to your property: Updating your home systems and installing a new roof when needed can help you save more on your policy. Additionally, it is essential to speak to your agent about major home renovations, as they may impact the value of your home and the amount of coverage you'll need.
Your Town & Country Insurance Agent is available and eager to assist you with your insurance needs! Contact us today!
Categories: Property Insurance