Homeowners Insurance

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

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 renter's insurance or condo coverage.  From Texas to Colorado and Ohio to Florida we are seeing both small and large weather related claims.

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.

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

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 umbrella 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 a 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 click below.