Properly navigating the complexities of homeowners insurance may leave many homeowners puzzled, especially when it comes to premiums suddenly spiking or remaining stubbornly high for reasons unknown. If you happen to find yourself asking “Why is my homeowners insurance so high?”, you’re not alone. Multiple factors can contribute to higher-than-average homeowners insurance costs. Through gaining a further understanding of these possible reasons, you can match up the factors involved with higher homeowners insurance rates and your personal experience. Throughout this post, we’ll go over the most common reasons homeowners experience higher premiums and what you can do to possibly lower said premiums. Should you need a new quote for your homeowners insurance, you’ll want to contact us and we’ll be happy to help.
Location, Location, Location
If the location of your property is in an area which is prone to flooding, hurricanes, wildfires, or earthquakes; you’ll likely find your homeowners insurance to be much higher than equivalent sized homes in areas without those location-based factors. It should also be noted, if your home happens to be located far away from a fire station or in a community with a higher than average crime rate, you may see elevated homeowners insurance premiums due to an increased risk of property damage or theft.
The Age & Condition of Your Home
Older homes with outdated, inefficient components and features may be prone to experiencing higher than usual homeowners insurance premiums. Older homes are much more susceptible to damage from plumbing, electrical, or structural issues than newer built homes. Another example of how the particular home type could be influencing your homeowners insurance premium is wooden structures being more prone to fire damage and termite infestations than solid brick or stonework homes
Type of Coverage & Amount of Coverage
The details of your homeowners insurance policy will play a critical role in determining the homeowners insurance premium costs as well. Opting for a policy with comprehensive coverage which includes protections such as guaranteed replacement cost could increase the price of your premiums. Similarly, higher limits on your policy and lower deductibles may increase how much you have to pay; offering more substantial protection, yet at a higher cost.
Claims History
If you or the previous owner of the home you now reside in have a history of making numerous homeowners insurance claims, you may be subject to higher premiums. Insurers will assess risk based on past claims history, and the more claims your property has, the more likely you are to experience a larger than usual premium cost.
Lack of Safety Features
Homes which have a lack of safety features such as burglar alarms, smoke detectors, carbon monoxide detectors, fire extinguishers, and modern heating systems will likely experience higher premium rates than those who do have all of the aforementioned safety features. If your home does not have these safety features, you could be at a higher risk for incidents which lead to a variety of claims.
Personal Property Value
The overall value of your personal property value inside your home may also affect your homeowners insurance rates. High-value items such as expensive jewelry, art, collectibles, and high-end electronics will require additional coverage. This in turn pushes your homeowners insurance premiums higher than if you were not to have these items within your home.
Multi-Policy Discounts
Failing to take advantage of multi-policy discounts could also result in paying unnecessarily higher premiums. When you bundle different types of insurance (home, auto, life, etc…) with the same insurer, they will often provide you with a multi-policy discount which could lower your rates by a decent margin.
Strategies to Lower Your Homeowners Insurance Premiums
Shop Around: By comparing quotes from different insurers, you can determine which insurer has the best level of coverage at the best rate.
Increase Your Deductible: Opting for a higher deductible may lower your overall premium costs, yet you’ll still want to ensure you choose a deductible amount you can afford should a claim-worthy incident occur.
Improve Your Home Security: Having properly installed security systems, smoke alarms, and other safety-focused measures in place can help reduce your premium.
Regularly Review Your Coverage: You’ll want to verify you’re not over-insured for no particular reason, as this could drive up premium costs.
Choose Portsmouth Atlantic Insurance for All of Your Homeowners Insurance Needs
Having a better understanding of why your homeowners insurance may be facing increased costs can help you make the right decisions in order to lower said costs to a more affordable rate with a sufficient level of coverage. By taking the time to properly assess each factor which affects your homeowners insurance premiums, and taking the proactive steps to reduce these factors contributing to your higher premiums, you can have a more positive experience with your homeowners insurance. Contact us to learn more about how we can help you find the best coverage and rates for your homeowners insurance needs.