This article focuses on homeowners’ insurance, a particularly important topic for me as a new homeowner. GoodHouseKeeping suggests a few straightforward tips to navigate this complex area.
First, don’t hesitate to shop around. Even though car insurance rates might be expected to go down, homeowners’ insurance premiums could rise by about 4%. So, it’s a good idea to compare prices. Many websites that offer car insurance quotes also provide homeowners’ insurance rates online.
Next, ask about discounts. You could save around 5% with many insurance companies if you’ve installed burglar alarms, smoke detectors, or deadbolt locks. Older individuals or non-smoking families might also qualify for discounts.
Be cautious not to over-insure. If your coverage matches the price you paid for your house, you might have too much insurance. Remember, the purchase price includes land value, which doesn’t need coverage, even if you lose the entire property. Adjust your policy to cover the rebuilding cost of your house, and consider dropping coverage for items that have depreciated in value. However, make sure you’re not under-insured either. As construction costs rise due to higher demand, your policy needs to keep up. If not, you might come up short if you ever need to rebuild after a disaster. Talk to your agent to find the right amount of coverage, and think about raising your deductible to save on costs.
Finally, choose your new home carefully. Coastal properties are beautiful but often come with higher insurance costs, particularly in areas prone to hurricanes. Insurance premiums in these regions could go up by 20 to 100% this year, and many insurers are not renewing policies for coastal homes. This has led to a rise in “insurance refugees” – those who can’t afford coastal coverage and move inland instead, a trend seen notably in Florida. Clearly, those ocean views come with a significant price.