The cost of homeowner’s insurance was 2.6% higher in February and March than a year ago, according to recent Bureau of Labor statistics.
The Insurance Information Institute projects that the average premium will rise from $820 in 2008 to $841 this year.
I’m sure the insurance industry thinks we should be grateful since it’s foisted much bigger price hikes on us the past couple of years.
Many homeowners along the Gulf of Mexico and Atlantic coasts are already paying twice as much as they did before Hurricane Katrina struck in 2005.
But I didn’t feel all that appreciative when I saw these stats and my renewal notice, which pushed the annual premium over $600 for the first time.
I also know premiums would be going up even more if insurers weren’t making subtle changes in policies that limit their costs if you have a claim.
You’ve also got to watch out for the 4 ways insurers cut homeowner’s coverage.
If you’re facing a big increase in the cost of your policy, you can try to save money by:
- Reviewing your coverage. Meet with an agent or broker to see whether any of the insurance you have for your home is no longer needed.
- Looking for discounts. You may be able to get a discount for insuring your home and car with the same provider.
- Raising your deductible.
Increasing your policy’s deductible will lower the amount you pay for insurance.