Why Is My Homeowners Insurance Cost Increasing?
Home insurance is a necessity if you plan on protecting your investment. Nonetheless, your homeowners insurance cost will rise in response to changes in the economic market. In most cases, the increase is gradual and you may not feel the strain for quite some time. However, in recent years, prices have gone up at a much faster rate causing one to feel the sting rather quickly.
Maintaining the Inflation Guard
Part of the reason your homeowners insurance cost seems to have skyrocketed is due to the inflation guard. The inflation guard was created to ensure that your home’s replacement value remains current with today’s competitive market. By keeping this value at the right level, it’s ensured that you will be able to replace your home if it is ever damaged or destroyed. A 2% to 4% yearly increase is normal. In recent years, it has jumped to almost 8%.
High-Risk Issues
Many homes have high-risk issues that a homeowner doesn’t always take into consideration. Swimming pools, trampolines, tree houses, exotic pets, or an aggressive breed of dog are common and can have a dramatic impact on your homeowners insurance cost. While there are safeguards you can put in place to protect yourself, most will not fully eliminate the risks. Even one claim on a high-risk issue can cause your premiums to climb higher and higher.
Finding the Right Discounts
Homeowners can find many discounts to lower their premiums. Installing a home security system is one of the most effective ways to lower your monthly homeowners insurance cost. Both DIY and professionally monitored systems are quite effective. It’s also a good idea to install a privacy fence and security lighting to protect your property. Surveillance cameras can also help detect suspicious activities. Place fire extinguishers throughout your home as well as smoke alarms and carbon monoxide detectors.
Do Your Research!
Do your research in terms of your home’s location. Is it in an area with a high crime rate? Where is the closest floodplain? Knowledge is valuable, especially when it comes to protecting your home. Understanding your risks and finding ways to lessen their impact will help keep your homeowners insurance cost manageable. Talk to your insurance agent and have them go over your policy with you. They can explain many of the things you may have not realized were included in (or excluded from) your policy.
If you have questions about why your homeowners insurance cost has risen and how you can keep them as affordable as possible, contact us at Massive Insurance and Financial Services. Our agents have years of experience and can go over your policy and help you find ways to save on home insurance premiums. If you notice your premiums starting to go up, call one of our agents as soon as possible. We can help you work through the increase and maybe even find a few discounts to make your premiums more affordable.