Factors That Can Increase Homeowners Insurance 

Homeowners insurance is a critical safeguard for protecting your home and personal belongings. However, the cost of homeowners insurance can vary significantly.

Many Georgia homeowners are currently struggling with increases in their homeowners insurance premiums.

The Recent Surge in Homeowners Insurance

Over the past few years, homeowners in the southern states of the United States have experienced a notable increase in insurance premiums, which may be attributed to the following factors:

• Severe weather—In the southern states, hurricanes, tornadoes and severe storms are common. These natural disasters can damage homes, leading to increased insurance claims.
• Rising material costs—The cost of building materials and labor has escalated. When homes need repairs or reconstruction, insurers face higher expenses. A shortage of skilled labor further drives up costs.
• Economic fluctuations—Insurers grapple with financial challenges. Catastrophic events strain their reserves, leading to tighter underwriting standards and premium adjustments. The industry’s profitability directly impacts homeowners’ rates.

How to Reduce Homeowners Insurance Costs

As a homeowner in Georgia, managing your homeowners insurance costs is essential. While protecting your home and belongings is crucial, saving money on insurance can significantly impact your budget. Here are a few tips to help lower your homeowners’ insurance costs.

Improve Your Credit Score

Your credit score plays a role in determining insurance premiums. Higher scores often lead to lower rates. To help improve your credit, consider keeping credit card balances low and paying all bills on time.

Avoid Filing Nuisance Claims

While insurance is there to protect you, filing frequent small claims can raise your premiums. Reserve your insurance claims for significant losses you cannot recover alone. For minor issues, consider handling repairs without involving your insurance company.

Increase Your Deductible

A higher deductible can help lower your premium. However, be prepared to pay more out of pocket if you need to file a claim. Choose a deductible that aligns with your risk tolerance.

Bundle Policies

Consider combining your homeowners’ insurance with other policies, such as auto or umbrella insurance, from the same carrier. Insurers often offer discounts for multiple lines of coverage. Discuss bundling options with your insurance agent.

Make Home Improvements and Upgrades

Specific home improvements to the following may help reduce insurance costs:

• Roofing—A well-maintained roof lowers the risk of water damage. Consider repairing or replacing an aging roof.

• Plumbing and electrical systems—Upgrades to these systems can minimize the likelihood of claims related to leaks or electrical issues.
• Security measures—Install smoke detectors, burglar alarms and deadbolt locks. Some insurers offer discounts for safety features.

Use Smart-home devices

Installing smart-home devices, such as security cameras, leak sensors and smart thermostats, can enhance safety and potentially lower premiums. Check with your insurer to see if they offer discounts for using these technologies.

Contact Us

Your insurance agent is a valuable resource. Contact Strawn & Co in McDonough, Georgia, to discuss your coverage needs and explore available discounts.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.