If you own a home that is $400,000, the national average to properly insure it is $2,801 and in the Tri-State area, it's even higher.
This annual premium puts a strain on a family budget. If you haven't looked at your policy in a while, it's time for a refresh.
In the last five years, home insurance rates have grown two times faster than the rate of inflation.
"It's shocking, it's disturbing, and it's creating a lot of stress for people," said Rob, an analyst.
The easiest way to reduce that stress and your monthly premiums is by raising your deductible.
"The higher your deductible is, that means you are going to be paying more out of pocket for a claim, but the tradeoff on that is you're going to pay less for your insurance rate, your monthly insurance bill is going to go down," he said.
Ask your carrier about discounts. You may qualify if you've installed smart home tech like leak, temperature, or intruder detection. Or, if you've invested in any major home renovations.
"Insurance companies love it when you upgrade your electricity, your plumbing, your roof, your HVAC, it's always good to ask," he said. "Some insurance companies give them to you're a veteran, some companies have discounts for people who work in different occupations like teachers, first responders."
You'll also get a discount for autopay or for paying in full. Before you do that, shop around. Bundling your home insurance with your life and car insurance should give you a cheaper rate. And don't overlook local insurers.
"There are some smaller companies that have just as good of service, if not better service and good coverage options," he said.
Before choosing, research, using independent resources.
"JD Power has customer service ratings, and the National Association of Insurance Companies has a consumer portal to look up complaints against insurance companies," he said.
Once you are given a quote, make sure you are comparing apples to apples.
"You want to make sure that all of the coverage limits match up in the different quotes. Anyone can give you a cheap rate if they are giving you a lot less coverage, and it's not necessarily a better deal," he said.
You want to avoid minor claims. If you have damage that costs just a few thousand to repair, paying out of pocket is going to be cheaper in the long run. Because if you report even a single claim, it can result in a rate hike.
Don't go uninsured. It's tempting, especially if you don't have mortgage, you aren't required to insure your home, but your house is your biggest asset. If disaster strikes, you don't want to be left in the cold.
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