Why does my home insurance keep going up?
1) The cost to rebuild your home increases over time. If you look at your home insurance policy, you’ll notice a coverage at the top that is called “Dwelling Coverage”. This is the amount of money that the insurance company has determined it will take to rebuild your home.
One constant reason for increasing premiums is because the cost to rebuild your home goes up every year. With the cost of materials and labor increasing, it will require more dwelling coverage. As a result of increasing coverage's, it affects the bottom line premium. One thing to consider is that older homes cost more to rebuild than newer homes.
2) Arizona insurance companies are increasing their home insurance rates. In 2018, every carrier I;m aware of is increasing their rates on auto and home insurance. The reasons behind this according to them is that they are all experiencing major losses throughout Arizona.
How Can I Reduce The Costs Of My Home Insurance?
1) Check Your Deductible. The average deductible for home insurance is $1000. When we speak to clients, we find out that many of them wouldn’t even file a claim on their home insurance for damages under $2000. They typically tell us that they would take care of the issue themselves or hire a contractor to repair or fix damages.
So that begs the question, “why have a $1000 deductible if it is never even going to get used?” Most people would agree that they would only file a home insurance claim if there was a major loss. As a result, we find that more and more homeowners are electing to have a higher deductible to save on their premiums.
The average difference in raising your deductible from $1000 to $2500 can be as high as 20% of the premium. With the likelihood of a claim being filed, these savings add up every year.
2) Bundle Your Auto Insurance With Your Home Insurance. This is self-explanatory. The more you “package” your insurance, the more discounts you receive. There are only a few instances where it makes sense to split up your policies with different insurance carriers. The majority of the time it can help you save an extra 20-30% on both your home and auto insurance.
3) Evaluate Your Insurance Every Year With Your Agent. Because Arizona insurance rates are volatile and change every year, it’s a good idea to connect with your insurance agent and go over options to see if a different carrier is a better fit. If your insurance agent only offers one product or a few variations of the same product, or if you did everything online and don’t have an agent, then it’s a better idea to consult with an independent agent who can look at the overall insurance marketplace for you. Luckily for you, we know just the right agency.
See How Much You Can Save On Your Home Insurance By Giving Us A Call At 602-412-3366.