Home insurance rates are expected to climb about seven percent this year, but there are some hidden ways you can take some control of your premium.
We’re breaking down the savings strategies to manage rising insurance costs.
Jess Wright recently moved out of her Brooklyn, New York apartment for a single-family home in upstate New York.
But with added space comes new responsibility — including adding a homeowner’s insurance policy.
“Top reasons, I’m thinking a tree falls on my house, somebody gets injured, god forbid, fire, major storm damage, that kind of stuff,” Wright said.
With homeowners’ insurance premiums expected to rise faster than inflation, Consumer Reports says now is the time to shop around.
“You do get a loyalty benefit for sticking around with companies, but it’s not as great as the benefit from getting an overall lower price from shopping around,” Tobie Stanger with Consumer Reports said.
Once you’ve found the right insurer, CR says bundling is the best way to get a big discount.
That means buying your homeowners and auto coverage from the same company, which can save up to 30 percent.
Think about extra items to bundle, like coverage for a boat, or motorcycle.
Raise your deductible
Moving to a $1,000 deductible from $500 can shave your premium by 25 percent.
While a low deductible could save money if you have a claim, CR says odds are, you won’t have one any time soon.
Report home improvements
Any time you replace old plumbing, add security cameras, or install gas or water leak detectors, let your agent know.
You may be able to trim off two to six percent with each additional item.
If you live in a fire-prone area, CR says even cutting back dry brush around your home and outbuildings could generate a credit on your bill.
Finally, when choosing an insurer, land on one that provides great service — regardless of the premium cost.
Two insurers have consistently landed in the top tier of Consumer Reports’ ratings: Amica and USAA.
“My husband’s father served in the military so we have USAA insurance, and their service is incredible,” Wright said. “They’re very responsive.”