Home insurance costs are on the rise across the country, and residents in the Tri-State are feeling the financial strain.
Holden Lewis, a mortgage expert with NerdWallet said the increase in insurance premiums is attributed to a rise in natural disasters, which has led to higher claims and repair costs. Insurance companies are passing these costs on to consumers, including those in our area.
Wilmington resident Lindsay Clepper said her insurance has gone up $400 a month over the past year and a half.
Lewis has some strategies you should consider to lower your insurance rates:
1. Call your current provider
Lewis said you should call your current insurer and ask if there are any discounts available. He said sometimes there are savings you may qualify for, but you won’t get them unless you ask.
“It really just simply helps to ask,” he said. “When you call and you're talking to someone on the phone and you ask about discounts, they know that they're at risk of losing you as a customer.”
2. Bundle to save
“A lot of insurance companies say, 'Oh, if you insure your car and your home with us, then we will give you a discount on those policies,'” Lewis said.
3. Consider increasing your deductible
“NerdWallet did a study and found that on average you can reduce your annual premium by 13% if you increase your deductible from $1,000 to $2,500 for the claim,” Lewis said.
It’ll cost you more if you file a claim, but the lower monthly payments could save you money over time.
4. Know that flooding is not covered
Standard home insurance does not cover flooding damage.
“There's always a danger of rising water on the Ohio and its tributaries. To be covered for that you have to get a different policy, a flood insurance policy, because your regular homeowner's insurance policy is not going to pay for the damage caused by flooding,” Lewis said.
5. Build your credit score
According to NerdWallet, your credit score could impact your home insurance premium.
A good credit score can help lower your insurance costs. Rates can vary widely from one company to another. You can easily compare rates and get quotes here.
"Don't Waste Your Money" is a registered trademark of Scripps Media, Inc. ("Scripps").
Follow John:
- Facebook:John Matarese Money
- Instagram: @johnmataresemoney
- X/Twitter: @JohnMatarese
Follow Taylor:
- Facebook: Taylor Nimmo
- Instagram:@tnimms
- X/Twitter: @tnimms
For more consumer news and money-saving advice, go to www.dontwasteyourmoney.com.
