American REIA For the past five years, I’ve had my house insured by the same provider. My insurance rate was increased by $300 last month when I received my renewal notice. How can I lower my home insurance premium?
First of all, there must be a reason for an increase in your premium. Possible reasons are:
- You filed a few claims. The more you ask your insurer to pay out, the more risk you pose, and the more likely they will increase your premium.
- Other policyholders filed too many claims. If local policyholders filed too many claims – for example, due to a weather event – your insurer can increase the insurance cost for all policyholders.
- Inflation and rising construction costs. Not only has inflation skyrocketed in 2022, but construction prices have also increased, making it more expensive to rebuild a home.
- You updated your home, increasing the replacement cost.
There are several ways you can reduce your home insurance premium:
- Change your insurer.
- Bundle your auto and home insurance policies.
- Raise your deductible (note that you will have to pay more out of pocket upon a claim).
- Install home security devices on your property.
- Look for home insurance discounts.
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