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6 Strategies to Save on Home Insurance Premiums

Marci'a Tolentino • April 15, 2024

From wildfires to floods, the past few years have brought a historic number of devastating climate and weather events to the United States. In 2023 alone, there were 28 individual weather-related disasters that caused at least $1 billion in damages each.1 


These events triggered a huge influx of home insurance claims, and analysts expect the increase in both catastrophes and claims to continue. Adding to the problem, construction labor and supply costs have risen, making it more expensive to repair affected homes. Consequently, home insurance rates have surged: In 2024, Bankrate reports, premiums are already up an average of 23%, following double-digit increases the previous year.2,3 


In disaster-prone regions, the situation is even more challenging. Some insurers have pulled out of risky areas entirely, and many of those that still offer policies in high-risk areas have doubled or even tripled their premiums.4


For most homeowners, comprehensive home insurance coverage is crucial for financial security—but massive rate increases can turn a once-affordable home into a financial burden. They can also pose a serious challenge for sellers. A home insurance policy is typically required to get a mortgage, and, in some hard-hit regions, we’re seeing sales fall through or homes sit on the market because insurance policies are unattainable or too expensive.5,6


But don’t panic! While these broader trends may be out of your control, there’s still plenty you can do to save. Here are our top six strategies to slash insurance premiums while maintaining the protection you need. 

 


1. SHOP AROUND


Getting multiple quotes is a smart move for many major purchases, including home insurance. We recommend reviewing at least three estimates before you commit to a policy. You can get quotes either by reaching out to insurers directly or by working with an independent insurance broker.7 You’ll need to provide detailed information about the property you’re insuring and your claims history.


Make sure you read policies carefully before you choose. Sometimes, a policy can look like a better deal at first glance but turn out to have important coverage gaps. Be sure to consider how much the policy will pay out to repair or replace your home and review caps on personal possession and liability claims. It’s also smart to read reviews from policyholders (Trustpilot is a good place to start) and ratings published by organizations like the Better Business Bureau and J.D. Power. 


For help choosing the right policy, reach out to us for a list of trusted insurance professionals.

 


2. INCREASE YOUR DEDUCTIBLE


The size of your deductible—which is the amount you pay before your insurance coverage kicks in on a claim—is a major factor in your insurance cost.


A low deductible, such as $500, comes with higher premiums, while a higher deductible, like $2,500 or even $5,000, costs less on a monthly basis. In some cases, you may be able to customize your coverage further by designating a different deductible for certain kinds of claims, such as those caused by named storms or natural disasters. 


If you are confident that you have enough in savings to cover that initial outlay if needed, choosing a higher deductible can help you save significantly over the long term. According to Nerdwallet, raising your deductible from $1,000 to $2,500, for example, could save you an average of 11% each year.8

 


3. BUNDLE MULTIPLE TYPES OF INSURANCE


Insurers want to get as much of your business as possible, so most offer significant discounts if you bundle your home and auto insurance, meaning that you package the two policies together. With some insurers, you can get even higher savings by bundling more than home and auto—RV, boat, jewelry, and life insurance are potential options to consider. 


According to US News and World Report, insurers typically offer customers who bundle home and auto insurance 10-25% savings on monthly premiums. This approach also has other advantages: It cuts down on your paperwork, and in some cases—like if a storm damages both your home and car—you may be able to pay just one deductible instead of two when you file a claim.9 


However, before you sign on the dotted line, remember strategy #1 and be sure to shop around. In some cases, bundling isn’t the cheaper option, and bundling deals vary between companies. It’s also critical to carefully check that the bundled coverage offers everything you need.

 


4. ASK ABOUT AVAILABLE DISCOUNTS


Did you know that being a nonsmoker might qualify you for a home insurance discount?8 Some insurers offer some surprising incentives for policyholders who pose a statistically lower risk of filing a claim. In the case of nonsmokers, that’s because of the decreased risk of a home fire.


Many carriers also offer discounts to military-affiliated families, homeowners in certain professions, such as teachers or engineers, or recent homebuyers. Sometimes, you can also save by opting for paperless billing or paying your premiums for a full year upfront.10 


Since available discounts vary significantly between insurers, the best strategy is to simply ask a representative for the full list of available discounts so you can see what cost savings might be available to you. 

 


5. AVOID MAKING SMALL CLAIMS


Worried that your premiums will rise significantly in the future? Try to avoid making a claim unless truly necessary. Many insurers offer discounted rates to policyholders who go a certain number of years without filing a claim, and filing multiple claims typically results in large increases.10 If you file too many, you may even risk nonrenewal of your policy.11


Since the cost of even a small premium increase can add up significantly over time, if you have minor damage to your home—for example, if a few shingles blew off your roof in a windstorm—it may be a wiser long-term financial decision to pay out of pocket instead of filing a claim. 


If the cost of the repair is less than your deductible, it never makes sense to file, and if it’s just slightly above your deductible, it’s also usually best to pay for the repairs yourself. Additionally, always be sure to review your policy before you make a claim. Even claims that are denied can count against you, so it’s not worth filing if the damage is clearly excluded from coverage.11 


If you find yourself in this situation, feel free to reach out for a list of reasonably-priced professionals who can help with home repairs.

 


6. BE STRATEGIC ABOUT HOME IMPROVEMENTS


Insurance premiums alone may not be the deciding factor for a home improvement project, but it’s important to know how renovations could impact your rates—for better or worse.


For example, some upgrades and repairs can reduce your premiums by making your home safer or less prone to certain types of damage. These include:12

  • Upgrading your electrical system
  • Updating your plumbing
  • Installing a monitored security system
  • Adding a fire sprinkler system
  • Replacing the roof


On the other hand, some upgrades can raise premiums significantly, either because they increase the value of your home (and therefore the cost to replace it) or because they pose a hazard. These include:12

  • Installing a swimming pool or other water features
  • Building an extension or expanding your living space
  • Upgrading materials, like flooring or countertops
  • Adding a fireplace or woodstove 


Whether or not your planned renovations are on either of these lists, it’s wise to inform your insurer about changes you make to your home—otherwise, you may risk gaps in coverage. And you’re always welcome to check with us before you begin any home improvement project to find out how it could impact the value and resale potential of your home.

 



BOTTOMLINE:

Protect Your Investment Without Sacrificing Enjoyment of Your Home

Getting the coverage you need for financial security without overpaying can be a tricky balance, especially in today’s environment. But remember, while it’s important to find the best deal you can, home insurance isn’t an area to skimp on. 

For advice on your specific risks and the type of coverage you need, we recommend consulting with a knowledgeable insurance professional. We’re happy to connect you with a trusted adviser in our network. And if you’re considering a home renovation, feel free to reach out for a free consultation on how it might affect your property value (and your premiums). 

 




The above references an opinion and is for informational purposes only. It is not intended to be financial, legal, insurance, or tax advice. Consult the appropriate professionals for advice regarding your individual needs.

 

Sources:

  1. Climate.gov -
    https://www.climate.gov/news-features/blogs/beyond-data/2023-historic-year-us-billion-dollar-weather-and-climate-disasters     
  2. Bankrate -
    https://www.bankrate.com/insurance/homeowners-insurance/homeowners-insurance-cost/
  3. Policygenius -
    https://www.policygenius.com/homeowners-insurance/home-insurance-pricing-report-2023/     
  4. CNN -
    https://www.cnn.com/2023/09/20/business/insurance-price-increase-risk-climate-first-street-dg/index.html
  5. BBC -
    https://www.bbc.com/news/business-66367224
  6. US News -
    https://realestate.usnews.com/real-estate/articles/how-climate-change-could-impact-your-home-value
  7. Nerdwallet -
    https://www.nerdwallet.com/article/insurance/how-to-shop-for-homeowners-insurance
  8. Nerdwallet -
    https://www.nerdwallet.com/article/insurance/save-on-homeowners-insurance
  9. US News and World Report -
    https://www.usnews.com/insurance/homeowners-insurance/how-to-bundle-home-and-auto-insurance
  10. Marketwatch -
    https://www.marketwatch.com/guides/insurance-services/how-to-save-on-homeowners-insurance/
  11. Bankrate -
    https://www.bankrate.com/insurance/homeowners-insurance/when-to-file-a-home-insurance-claim/#when
  12. Bankrate -
    https://www.bankrate.com/insurance/homeowners-insurance/home-insurance-and-renovations/

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7 Weekend Projects to Boost Your Property Value

By mtolentino33 • June 26, 2024
Whether you’re putting your home on the market in a few weeks or a few years, strategic upgrades can make all the difference. But you don't have to embark on a major remodel to make a significant improvement. Even minor updates can have a big impact on your home’s aesthetic, and certain renovations can even boost its future sale price. From curb appeal to interior updates, here are seven weekend projects that will enhance your home’s current charm and long-term value. 1. Freshen Your Front Door Is your front door looking a little tired? A new coat of paint can make your home more inviting to today’s guests and tomorrow’s buyers. But before you grab that paintbrush, think carefully about your choice of hue. According to a recent study, the color of your front door can boost—or lower—your home's sale price by thousands of dollars. 1 Cement gray, for instance, was found to decrease purchase offers by an average of $3,365. Going too bold can also deter home shoppers. The safest bets? Classic black or a mid-tone brown are proven winners. 1 Need help choosing the perfect paint or stain for your front door? We'd be happy to offer advice or refer you to a design professional for assistance. 2. Upgrade Your Hardware and Lighting It's easy to overlook dated cabinet pulls or dingy light switches in your own home. But those seemingly minor details can leave a bad impression on visitors. Swapping out old hardware for modern alternatives can easily and affordably elevate your space. New cabinet handles, for example, are relatively inexpensive and require just a few minutes and a screwdriver to install. To maximize the longevity of your update, consider classic shapes and finishes like brass knobs or nickel cup pulls. 2 Take a look at your light fixtures, too. Try replacing an out-of-style chandelier with a more contemporary option. Even just updating your lampshades and lightbulbs can create a brighter, more welcoming space. Additionally, many experts agree that high-quality lighting can show off your property’s best features when it comes time to sell. 3 Uncomfortable changing a light fixture yourself? Contact us for a referral to a licensed electrician for help. 3. Update Your Bathroom Fixtures Bathrooms can show their age quickly, but a few inexpensive updates can take years off in just a few hours. And since many buyers will be more drawn to a home that feels clean and modern, even small changes can make a big difference. According to one study, for every dollar you spend on minor cosmetic upgrades—like swapping out the bathroom mirror, upgrading hardware, or refinishing cabinets—you’ll see a $1.71 increase in your home’s value. 4 Bathroom hardware is a great place to start. Consider updating your faucets and showerheads (we recommend lower-flow options to save money and the environment), and don't forget about towel racks, toilet paper holders, and any other fixtures that look worn or discolored. 5 If you want to stay on-trend, the most popular faucet finishes are currently black, nickel, and pewter. Spa-like upgrades, like steam showers and rain showers, are also in high demand. 5,6 If your existing vanity is in poor condition, installing a new one is a slightly bigger project, but it has a huge impact on the look and feel of the room. Reach out for a list of retailers who carry high-quality but affordable prefabricated options. 4. Give Your Kitchen Cabinets a Makeover The kitchen is often referred to as the heart of the home, so it's no surprise that an updated kitchen is a top priority for current homeowners and potential buyers alike. 7,8 If your kitchen cabinets are from another era, that’s probably the first place you’ll want to start. Fortunately, you don’t need to commit to the hassle and expense of installing new cabinets if your current ones are in good shape. Instead, consider painting them. Not only is it more affordable and eco-friendly than replacement, but Better Homes and Gardens reports that this option typically offers a greater return on investment. 9 When it comes to choosing the right color, warm neutrals and shades of green and blue are especially on-trend. 10 Thinking about painting your cabinets yourself? Be sure to plan in advance and block out at least a couple of days for the project. You’ll need to take off all your cabinet doors and hardware and thoroughly cover your kitchen appliances and counters. You’ll also need to wait for the doors to dry before reassembling your kitchen. 11 If you’re not confident in your painting skills, hiring a professional will still be far less expensive than installing new cabinets. We’re happy to refer you to capable painters in our network. 5. Look at Your Landscaping First impressions matter, and putting some work into your home’s exterior can make a big difference in how your guests and neighbors view it. Curb appeal can also make or break a potential buyer’s perception of your home—and significantly impact their offer. According to HomeLight, buyers will pay 7% more, on average, for a home with good curb appeal. And in some areas, the return on investment for improvements can exceed 300%. 12 One of the best ways to improve curb appeal is through landscaping—and it doesn’t have to be elaborate. First and foremost, focus on keeping things neat, tidy, and welcoming. Mow your lawn, refresh any mulch, prune overgrown shrubs, and add pops of color with flowers. To take things up a notch, add outdoor lighting and plant perennial flowers along the sides of your walkway. When you’re ready to get started, reach out for a list of our favorite local garden centers where you can find all the necessary supplies. 6. Refinish Your Wood Floors For many buyers, wood floors are a huge selling point. Unfortunately, they also tend to get scuffed and worn over time, especially if you have kids or pets. The good news? If your wood floors could use a touch-up, it’s well worth the time and cost. According to the National Association of Realtors, it’s the project that pays off the most in terms of resale value, with an average 147% return on investment. 13 If you have a few days to devote to your floors, you can rent the necessary equipment from a local hardware store. While you’re there, pick up some basic supplies, like a putty knife, paintbrushes, sandpaper, and stain. 14 And if you want to modernize your space, opt for a lighter wood tone, which is the current trend. 15 Of course, we’re also happy to provide the names of trusted professionals who can tackle the work for you. 7. Clean or Replace Your Grout Let’s face it: Whether it’s on a kitchen floor or a bathroom wall, grout gets grimy over time, even with regular cleaning. Fortunately, refreshing your grout is a relatively simple and affordable project that can yield impressive results. According to Apartment Therapy, grout that’s in poor condition is often one of the first things a potential buyer notices when they tour a bathroom. 16 Fresh, clean grout, on the other hand, makes your bathroom sparkle—and that can pay off in a big way in terms of buyer’s perceptions. If your grout is simply stained, a focused cleaning session can make a big difference. Try a specialized product or a simple mix of baking soda, water, and hydrogen peroxide.16 If the grout is cracked, crumbling, or stained beyond repair, it’s time to replace it. Luckily, the right tools make that a very doable DIY project, even if it can get messy—and it’s a lot easier and less expensive than retiling. 17 No time to tackle it yourself? Reach out for a recommendation of a pro who can help. CHOOSING THE PROJECT THAT’S RIGHT FOR YOU Embarking on home improvements can be exciting, but it's essential to choose projects that align with your goals, budget, and skill level. Whether you're preparing to sell your home or simply want to enhance its value, there are projects to suit every homeowner. If you're unsure where to start, don't hesitate to reach out for personalized advice and recommendations. With the right approach, you can unlock your home's full potential and enjoy the rewards for years to come. The above references an opinion and is for informational purposes only. It is not intended to be financial, legal, or tax advice. Consult the appropriate professionals for advice regarding your individual needs. Sources: Zillow - https://www.zillow.com/learn/what-color-paint-front-door/ Martha Stewart - https://www.marthastewart.com/kitchen-hardware-trends-8563764 The Spruce - https://www.thespruce.com/expert-home-lighting-tips-8302722 Zillow - https://www.zillow.com/learn/roi-for-bathroom-remodel/ Forbes - https://www.forbes.com/home-improvement/bathroom/easy-quick-bathroom-updates/ Real Simple - https://www.realsimple.com/nkba-bathroom-design-trends-2024-8403788 Houzz - https://www.houzz.com/magazine/2024-u-s-houzz-and-home-study-renovation-trends-stsetivw-vs~174492310 National Association of Realtors - https://www.nar.realtor/magazine/real-estate-news/survey-buyers-judge-a-home-by-its-kitchen Better Homes and Gardens - https://www.bhg.com/kitchen/remodeling/planning/kitchen-upgrades-cost-value/ House Beautiful - https://www.housebeautiful.com/room-decorating/colors/g46105350/kitchen-paint-color-trends-2024/ HGTV - https://www.hgtv.com/design/rooms/kitchens/best-way-to-paint-kitchen-cabinets Homelight - https://www.homelight.com/blog/what-upgrades-increase-home-value/ National Association of Realtors - https://www.nar.realtor/magazine/real-estate-news/stub-for-148394 Architectural Digest - https://www.architecturaldigest.com/story/refinishing-hardwood-floors Houzz - https://www.houzz.com/magazine/5-new-trends-in-flooring-for-2024-stsetivw-vs~173560747 Apartment Therapy - https://www.apartmenttherapy.com/outdated-bathroom-features-37131219 Better Homes and Gardens - https://www.bhg.com/how-to-regrout-tile-7554710
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