Colorado homeowners are experiencing insurance rate increases due to circumstances beyond their control. The team at JJ Insurance in Denver, Colorado, can provide more information about this development and work with you to secure a homeowners policy that provides the coverage you need at the best value. Contact us for more information.
What Affects Homeowners Insurance Rates?
Several factors influence homeowners insurance premiums such as the following:
· Damage due to wildfires and severe weather (e.g., hailstorms). This can result in many homeowners filing insurance claims that insurers must pay. When this happens, insurers may look for ways to recoup their losses by raising premiums.
· The costs of labor and materials. The price of repairing damaged homes or replacing them impacts the amount of financial assistance an insurer provides after a claim. If the prices of labor and materials increase, insurance companies may consider these added costs when determining rates.
Increasing Insurance Rates
According to a report from Policygenius, 90% of homeowners experienced an increase in their quoted annual homeowners insurance premium compared to the prior year from May 2021 to May 2022. The report also noted that Colorado saw an average homeowners insurance rate increase by 17.5% over that timeframe. That amount outpaced the overall U.S. inflation rate (8.6%) by more than double.
What Can Homeowners Do to Lower Their Homeowners Insurance Rates?
Although many factors that influence homeowners insurance premiums are out of policyholders’ control, they are strategies that can help lower costs, such as the following:
· Adding security and loss prevention features to your house. Insurers may offer lower premiums if your home has security features or other systems that prevent losses (e.g., fire alarms and water sensors). These additions may reduce the likelihood of needing to file a major claim and improve your overall risk profile.
· Reviewing your deductible. You may be able to save on the overall premium of the policy if you increase your deductible. When considering this, it is essential to analyze your budget to ensure you would have enough money ready if you needed to file a claim.
· Bundling your coverage. You may be eligible for savings if you secure your homeowners and auto policy through the same company. This practice, known as bundling, can help reduce your rates and may offer added conveniences such as having your insurance information in one place.
· Asking about other discounts. Insurers may have other discounts available, such as those based on the age of your home, upgrades, payment frequency or years with the same company (e.g., loyalty programs). Certain occupations (e.g., teachers) and veterans may also be eligible for discounts. Ask your agent to see which discounts may be available.
Other techniques may also help homeowners lower their insurance costs. Consult with your agent for details.
Discuss your insurance needs and budget with your JJ Insurance agent. We can help you determine if changes to your current policy would decrease your homeowners insurance rates while offering the coverage you need. As an independent agency, we can secure multiple homeowners insurance quotes from leading insurance companies. Contact us today for more information.
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.