At Levitt Insurance Agency, we understand that rising homeowners insurance rates are a concern for many of our clients. You may have noticed your premiums increasing recently and wondered why. There are a few key reasons, including severe weather, higher costs for construction materials, and rising labor costs. However, there are also many ways to help keep your costs manageable, and we’re here to guide you through them.
In this post, we’ll break down the main factors contributing to these rate increases and show you what steps you can take to lower your premiums. At Levitt Insurance, we want to help you make the best choices to protect your home while keeping your insurance affordable.
Why Are Homeowners Insurance Rates Going Up?
- More Severe Weather Events and Climate Change
- Weather-related claims have increased due to more frequent and intense storms, hurricanes, wildfires, and floods. Climate change has intensified these events, making some areas more prone to natural disasters than before.
- As a result, insurance companies are seeing more costly claims and must adjust premiums to account for the added risk. Homes in high-risk areas, especially, are facing higher premiums.
- Higher Construction Costs
- Inflation and supply chain disruptions have driven up the prices of materials like lumber, concrete, and steel. This means that when a claim is filed for damage, it costs more for insurers to pay for repairs and rebuilding.
- For example, replacing a roof or rebuilding after a storm is now far more expensive than just a few years ago. This increase in claims costs leads insurers to adjust rates to ensure they can cover future claims.
- Labor Shortages in Construction
- A shortage of skilled labor means that wages for construction work have gone up. Higher labor costs make repairs more expensive, directly impacting insurance companies’ costs when they pay out claims.
- To cover these additional costs, insurers have to raise premiums, passing on a portion of this expense to homeowners.
- Increasing Home Values and Property Improvements
- Home values have been rising, and many homeowners are investing in property improvements, such as updated kitchens, additional rooms, or high-end finishes.
- Higher home values mean that if something happens, the cost to repair or replace the home will be higher. Insurance coverage needs to reflect these values to provide adequate protection, which often leads to an increase in premiums.
- More Crime in Certain Areas
- In some neighborhoods, property crime like theft and vandalism has increased. Insurers factor these risks into premium calculations, as more incidents lead to more claims.
- At Levitt Insurance, we understand how these factors affect insurance costs and can help you identify security measures that may reduce your risk and potentially your premium.
- Increased Costs of Reinsurance
- Reinsurance is the insurance that insurance companies buy to protect themselves from large losses. With the increase in severe weather events and rising costs globally, reinsurance premiums have gone up.
- As insurers’ costs increase, they must adjust premiums to ensure they can handle potential claims, which leads to an industry-wide increase in homeowner premiums.
How You Can Lower Your Homeowners Insurance Premiums with Levitt Insurance Agency
While rising rates can be frustrating, there are many steps you can take to help manage your costs. Here are some ways Levitt Insurance Agency can assist you in lowering your premiums:
1. Shop for the Best Rates with Levitt Insurance
- We recommend getting quotes from multiple insurers to compare rates. Different companies evaluate risk factors in their own way, so shopping around can reveal lower-cost options.
- At Levitt Insurance Agency, we work with a network of trusted insurance providers and will help you find the best fit for your needs and budget.
2. Consider Raising Your Deductible
- A higher deductible can often mean a lower monthly premium. However, it’s important to choose a deductible that you could afford to pay if you need to file a claim.
- We can walk you through this process, helping you weigh the pros and cons of different deductible options so you can make an informed decision.
3. Bundle Your Insurance Policies
- Many insurers offer discounts when you combine home and auto policies. At Levitt Insurance, we can explore bundling options that might save you a substantial amount on your overall insurance costs.
- Bundling is a simple way to maximize savings while keeping all your insurance needs in one place.
4. Add Security and Safety Features
- Insurers often offer discounts if your home has safety features like smoke detectors, burglar alarms, or security systems. These features reduce the likelihood of incidents, which lowers the risk for insurers.
- Talk to us about security upgrades, and we can let you know which features could qualify you for discounts.
5. Select Coverage That Fits Your Needs
- At Levitt Insurance, we believe in making sure you have the right amount of coverage—no more, no less. We’ll help you review your policy and make adjustments so you’re not overpaying for unnecessary coverage.
- If your home has been fully paid off or you’re comfortable with limited coverage, there may be opportunities to reduce your premium while still having adequate protection.
6. Improve or Maintain a Good Credit Score
- In many states, insurers look at credit scores as part of the premium calculation. A good credit score can lead to a lower premium, as it’s often seen as an indicator of financial responsibility.
- Our agents at Levitt can explain how credit affects your rate and provide tips to help you improve or maintain your score.
7. Avoid Filing Small Claims
- While homeowners insurance is there for emergencies, filing frequent small claims can result in higher premiums. If possible, handle minor repairs out-of-pocket to keep your claims history clean.
- Reserve insurance claims for significant events, which can help you avoid future rate increases.
8. Ask About Available Discounts
- Insurers offer a variety of discounts that may apply to you, such as loyalty discounts, new home discounts, or discounts for specific upgrades.
- Our team at Levitt Insurance will work with you to make sure you’re receiving every possible discount to lower your premium.
9. Review Your Policy Regularly
- It’s a good idea to review your policy once a year to make sure it’s still meeting your needs. If you’ve made any upgrades or moved items out of the home, adjustments might be in order.
- At Levitt Insurance, we offer free policy reviews to ensure you’re not paying more than you need. Our goal is to keep you covered at the best possible rate.
How Levitt Insurance Agency Can Help
Rising homeowners insurance rates can be overwhelming, but you don’t have to navigate these changes alone. At Levitt Insurance, we’re committed to helping you understand your options and find the best solutions to keep your insurance affordable. From shopping for competitive rates to reviewing potential discounts, we’re here to support you every step of the way.
Contact Levitt Insurance Agency Today
If you have questions about your homeowners insurance or want a free quote, reach out to us today. Let’s work together to find the best coverage at the best price, so you can protect your home with peace of mind.e.