Natural disasters and inflation have been driving up homeowners insurance premiums across the United States. Many homeowners are struggling to find insurance that fits their budget. In some areas, it’s difficult to get coverage at all. If you’re having trouble finding homeowners insurance that you can afford, here are some options to explore.
Review and Consider Changing Your Coverage
Go over your current homeowners insurance policy and look for areas where you can make changes to lower your premiums. For example, if you decluttered your house and sold or donated a lot of your belongings, you might be paying more than necessary for personal property coverage.
If you have replacement cost coverage, and your belongings get damaged or destroyed, your insurance company will give you enough money to replace them with identical or comparable new items. If you have actual cash value coverage, you’ll get a smaller payout that factors in depreciation. If you currently have replacement cost coverage, switching to actual cash value coverage might significantly reduce your premiums.
Raising your deductible is another way to lower your homeowners insurance rates. If you switch to a higher deductible, you’ll have to pay more out of your own pocket if your house gets damaged, but you’ll pay lower premiums. Just make sure that you’ll be able to cover the deductible, if necessary.
Ask About Discounts
Insurance companies generally offer discounts that help eligible customers lower their premiums. If you bundle your homeowners and auto insurance and get both policies through the same company, you might be able to save money without making any changes to your coverage. Your profession or your membership in a professional organization might also make you eligible for a discount.
Insurance companies set their rates based on the likelihood that a homeowner will file a claim. Installing storm shutters, repairing or replacing the roof, or adding a security system might make you eligible for lower premiums. Contact your insurer to ask about discounts that are available.
Shop Around
Homeowners insurance companies use different methods to set their premiums. You might be able to get the exact same coverage you currently have at lower rates by switching to a different carrier. Compare quotes online or enlist the help of an independent insurance agent.
Learn About Programs in Your State
In some areas, insurers are no longer offering homeowners insurance because of natural disasters and the large numbers of expensive claims associated with them. From the perspective of insurers, the risk of covering homes in regions that are prone to disasters is simply too great.
If you live in one of those areas, you might be able to get homeowners insurance in another way. Many states offer FAIR (Fair Access to Insurance Requirements) insurance to homeowners who would otherwise be unable to get coverage. Eligibility requirements, coverage options and premiums vary by state.
