When you got your homeowners insurance premium, were you surprised at how much it increased? You're not alone. Many homeowners in California are seeing higher premium changes than usual. Let's talk about why that's happening, and what you can do about it.
WHY IS YOUR HOMEOWNER PREMIUMS GETTING MORE EXPENSIVE?
Some of the most destructive wildfires in California's history have occurred in just the last four years, and California has the highest fire loss risk in the country as well.
Increased costs for Labor and Materials
The pandemic has wreaked havoc on supply chains, while at the same time there's also a higher demand for home construction projects. Increases in the cost of labor and materials means the cost of rebuilding your home has gone up, too. If you don't have enough coverage, you might not have enough for a complete loss, and get stuck paying out of pocket for the difference! Your Coverage A, the cost to rebuild your home, should reflect these increased costs. Ask us to evaluate your coverage if you are unsure that it's enough.
The cost of water losses contributes to increased costs. California has the third highest water loss costs in the country.
Age and Inflation
Your home is getting older every year, and older homes cost more to insure.
Inflation is also a factor and will contribute to your added costs.
WHAT CAN YOU DO TO HELP BRING DOWN YOUR HOMEOWNERS PREMIUM?
1 Get every discount you are eligible for:
- The biggest discount by far is to bundle your home with your auto. Most of our carriers offer at least 15% off both home and auto
- Prevent water claims - Install a water leak detector and ask your carrier for a discount. Some carriers even help you pay for the system
- Prevent theft claimsInstall a central fire/burglar alarm, and send us the "alarm certificate" for your discount
2 Raise your deductible to $2500 or higher. Remember, when you file a claim, and lose your claim-free discount.
3 Give us a call, or talk to us when we call you for your annual review so we can evaluate your policy and make recommendations to help bring down your costs. If you aren't already with a preferred carrier, we can find out if you are eligible.
Please contact us to assist you in finding all the ways we can help you with policy.