Homeowner’s insurance is a type of insurance that covers private residences from fire, theft, and other high-risk scenarios. It is highly recommended for most homeowners for the benefits it offers. But one thing homeowners may not like about their coverage is the high price tag it comes with. On average, homeowner’s insurance runs as high as $1288 a year. In states like Florida and Louisiana, where natural disasters are more likely to occur, it’s not unusual for homeowners to pay closer to $2800. Several factors contribute to the high price of homeowner’s insurance, and understanding what’s causing the inflated rates may help you keep expenses under control. This article will answer the question, ‘why is my homeowner’s insurance so high?’ so you can determine what you can do to make it more affordable.
Factors That Increase Premiums
Many factors increase premiums, including the following:
• The insurance company you use: Some companies charge higher premiums than others.
• You live in a lousy neighborhood: If you live in an area where your house is likely to be broken into, you may have to pay a higher premium.
• Your deductible is low: Your deductible refers to the out of pocket costs you must pay in the case of an accident. While it is good to pay low deductibles, it could increase monthly fees.
• Your area is prone to natural disasters: If you live in an area prone to floods, tornadoes, hurricanes, and the like, your insurance may be higher.
• Remodeling: Remodeling can make your insurance increase. This is because insurance companies will have to pay higher amounts if any damage occurs to newer structures.
• The insurance company you use: Some companies charge higher premiums than others.
• You live in a lousy neighborhood: If you live in an area where your house is likely to be broken into, you may have to pay a higher premium.
• Your deductible is low: Your deductible refers to the out of pocket costs you must pay in the case of an accident. While it is good to pay low deductibles, it could increase monthly fees.
• Your area is prone to natural disasters: If you live in an area prone to floods, tornadoes, hurricanes, and the like, your insurance may be higher.
• Remodeling: Remodeling can make your insurance increase. This is because insurance companies will have to pay higher amounts if any damage occurs to newer structures.
How To Lower Insurance Rates
Now that you have the answer to the question, why is my homeowner’s insurance so high? You will want to figure out how I can lower my homeowner’s insurance? There are a few ways you can do this. Suppose your home is located in a bad neighborhood or an area prone to natural disasters and reflected in high insurance rates. In that case, moving may not be an option. However, there are other things you can do to bring your rates down. Shopping around for the best insurance rates will be helpful. Look for a company that offers the lowest rates available. It’s also a good idea to look at other providers from time to time to see if they are offering better rates than the company you’re currently with.
What About Remodeling?
It is typical for homeowners to remodel every few years. The right remodeling projects will make the home living experience more enjoyable, increasing the home’s value. However, it will also boost insurance costs. It’s a good idea to know exactly what you’re getting into before starting your remodel project. Therefore, it’s advisable to call your agent before you even nail in the first nail. Your agent will be able to tell you how much your insurance will increase by. They will advise you whether you need more insurance, which could be the case if you are installing a swimming pool or hot tub. When speaking to your provider, be sure to ask about discounts as well. You may be eligible if you add a more robust security system, a smoke alarm, and so on.