Homeowners Insurance

homeowners insurance


Homeowners insurance is getting out of control...
What you can do to keep your insurance rates from burning up your wallet?

Have you seen a dramatic rise in your home insurance premium in recent years?  We have people calling daily looking for lower homeowners insurance.  Maybe you received one of those notices or seen your mortgage payment increase

Insurance premiums for homeowners insurance are under attack and coming after your budget.


Read this article for simple tips to get your budget back under control. 

Home insurance in the past was a cheap loss-leader for the more profitable auto insurance.  

A few years ago, the average home insurance policy with standard coverage's for around $500-$600, years ago. But today, you’d be hard-pressed to find any carrier willing to charge less than $1,000 annually. Which is common in the Midwest.  

Sure, you can still get cheap home insurance in some states like: Arizona and California from $300, $400 or $500 a year.

These states don't have as many weather-related claims. Carriers will still try and spread the risk around the country to help even out the losses.  You’ve heard the saying “The Law of Large Numbers?" This applies to the insurance industry; passing on rate increases to areas not at high risk of claims.

Why are homeowners insurance premiums rising?

The simplest answer is weather related claims, and claim losses around the country.

Weather has been a major problem for insurance companies. Carriers spend millions yearly monitoring and trying to predict climate change. Insurance companies look at weather pattern years in advance to reduce future exposure. Taking rate increases in areas that have proven higher Risk.  National insurance carriers have pulled out of most coastal communities.  New York and New Jersey are having a hard time finding affordable insurance along the coast. Florida, currently has no national insurance carriers except for renters insurance or condo coverage.  From Texas to Colorado and Ohio to Florida we are seeing both small and large weather related claims

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Insurance Brokers Group sees homeowner’s file roof claims on average every ten years. Especially in the Midwest, where, IBG is headquartered.  

Gone were the days when people buying a new roof because of old age.

$5,000 roofs in the past, today now cost $10,000 and $12,000.   Many insurance carriers have adopted a higher mandatory deductible for wind and hail.  AAA Insurance switched customers at renewal with a 1% deductible in many states.

You might want to check your renewal policy for changes that might affect your wallet.

Thinking you have $500 deductible vs. a 1% could mean hundreds or thousands more out of pocket.

weather related claims
home insurance


Quick example of how that would work for a $200,000 homeowner with AAA insurance and many other carriers:

$200k x 1% = $2,000 with a roof replacement cost of $10,000 and the roof is, let’s say, 10 years old. Typical roof has a 20-year life span which translates to 50% of the life. $10,000 roof (–) remaining life expectancy = $5,000 + $2,000 (1% deductible) = $7,000 total deductible for a new roof. The insurance carrier will write a check for $3000 and the rest is up to the homeowner or $7,000.

Make sure you a FULL replacement policy and not like above with an ACV or Actual Cash Value policy.  You Don't want a policy that depreciates the value of anything, including the roof.  

I'm sure it sounds a little complicated, but asking the right questions will help you get the right coverage and an affordable deductible. 

7 out of 10 people will get this home insurance question wrong

Diana M.Arizona

Congratulations John Espenschied on your award. And thank you for your over and above help with our auto and homeowner’s insurance. You are tops in our book...a 5 star!!! You have given us the help we need when we need it and always serves our insurance needs well. Thank you again. 

​​​How to lower home insurance premiums?

Our best advice is to shop around for lower cost home insurance at least every 2 years.  Not only is it a good idea to shop for lower rates, but this would be a good time to review your deductibles. Remember, for many insurance policies there are two deductibles. One for home and contents, including fire, theft and other claims and one for wind and hail.

Looks at combining your home insurance with an auto, umbrella insurance, RV, Boat or other types of coverage to get the bundling discount.  These policies will also receive a discount, and when combined could save you an additional 10% to 40%.   A cost effective way to add additional liability protection is with a personal umbreall policy.  These policies are especially important if you have children, a swing pool, trampoline or like to entertain.  For as little as $150.00 per year you could have an additional $1 million in liability protection, plus discount on your home insurance policy.

Home Insurance Cost Calculator

Our friends in Florida will have three separate policies: 1. Fire 2. Wind 3. Flood​  Each with their own deductibles.

Double check to see if you are one of the folks with a percentage based deductible and/or ACV policy. Most insurance policies we sell are flat dollar amount deductible. But, you the option of a percentage based deductible to further lower the cost of insurance. For more information on home insurance call 800-459-6060 or click on the link below for quotes.   

Has it been more than 2 years since you checked
Home insurance rates?

Let us shop your home insurance rates for better coverage, deductibles and lower insurance premiums. Remember, if it's been more than two years, chances are you will be overpaying.  Call or click for free quotes from multiple insurance companies.  You can also try our free home insurance calculator to get an estimated average cost of homeowners insurance.

Home Insurance Quotes in as little as Five Minutes

Call Insurance Brokers Group for quotes over the phone: 314-569-1010. 


About the Author

John Espenschied is a long-time veteran of the insurance industry. He has worked in various positions within the industry for over 20 years, and for the past 15 years, he has been the owner and operator of Insurance Brokers Group, an independent insurance agency. John loves advising people on the insurance that meets their needs and goals, whether it be for personal or commercial purposes.

John is married to Melissa, and they have three children together, as well as three grandchildren. In his spare time, John enjoys golfing and playing in the golf league, biking to their local brewery along the Missouri river, and going on motorcycle rides when the weather is nice.

John Espenschied

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