You opened your home insurance renewal notice, and BAM your jaw hit the floor. “What on earth happened?” you ask yourself. No claims, no missed payments, and yet here we are. We get it, it’s infuriating. The continuous conundrum of ever inflating prices haunts us all. You’re not alone in this uphill battle against ever increasing premiums. Let’s break down why home insurance renewal costs are climbing faster than your favorite streaming service subscription.
Severe Weather Is Wreaking Havoc
Remember those back-to-back hurricanes, wildfires, and “once-in-a-lifetime” storms? Yeah, they’ve been showing up yearly. In 2023 alone, the U.S. endured a record number of billion-dollar weather disasters. Insurance companies have been left footing enormous repair bills, which means unfortunately those costs get passed down to all of us.
There Aren’t Enough Workers to Fix It All
The construction industry is missing about 247,000 skilled trade workers, which is driving up labor costs. Fewer workers = higher wages = pricier repairs. So, when your insurance company pays out on claims, it costs them more. And guess where that extra cost ends up? Yep, your premium.
Materials Are Still Expensive
While construction material prices are slightly better than they were at the height of the pandemic, they’re still up over 40% compared to pre-pandemic levels. Everything from wood to windows is more expensive to replace, making repairs costlier and claims more expensive.
Inflation’s Ripple Effect
Inflation hasn’t just impacted your grocery bill it’s also hit insurance companies. Rising energy, transportation, and storage costs mean companies are spending more to operate. Unfortunately, some of those costs trickle down to you and I, the policyholders.
How Can You Lower Your Premium?
While we can’t stop hurricanes or single handedly solve the worker shortage, but there are ways to reduce your home insurance costs:
- Upgrade your roof: Insurers love a sturdy, storm-ready roof.
- Add security systems: Central station fire alarms, burglar alarms, and water leak detectors don’t just protect your home, they can also protect your wallet.
- Opt to get your documentation by email: Some carriers will offer a discount on receiving electronic correspondence.
- Bundle policies: Combining your home and auto insurance is the best way to get the best rate.
We know this isn’t what you want to hear trust me; we feel your pain. But understanding the “why” behind those soaring premiums can help you navigate options to save where you can. And rest assured, we’re working hard to provide you with the best coverage at the best price possible, because while we can’t control the weather, we can control how prepared we are.
Questions on your home insurance premium insurance? Contact Nancy Cherenfant at (508) 824-8666 or at ncherenfant@fbinsure.com to see if umbrella insurance is the right fit for you.
Learn more about homeowners insurance FAQ’s here: Homeowners Insurance – FBinsure
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