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If you’re heading into the new year trying to save money, you’re not alone. One bill that’s been hitting homeowners especially hard? Home insurance.
Premiums are up nearly 70% since 2021, and they’re expected to keep rising. That makes the old “set it and forget it” approach a risky move. A quick review of your policy could save you real money—or prevent a costly mistake later.
Here’s how experts say to lower your costs without leaving yourself exposed.
The fastest ways to cut your premium
The quickest win is also the simplest: shop around.
If you’ve been auto-renewing your policy for years, there’s a good chance you’re overpaying. Even switching carriers or adjusting policy language can lead to savings without sacrificing coverage.
Another option is raising your deductible, but be careful. Yes, it lowers your monthly bill—but it also means more money out of pocket if something goes wrong. Only do this if you have enough emergency savings to cover it.
Bundling home and auto insurance can help, but not always. Sometimes separate policies are cheaper, so compare both options.
And don’t forget about discounts. Security systems, impact-resistant roofs, wildfire certifications—many discounts aren’t applied automatically. You usually have to ask.
Smart upgrades that pay off long-term
If you’re thinking longer-term, investing in your home can actually stabilize insurance costs.
A new or upgraded roof—especially impact-resistant or metal—often leads to lower premiums. The same goes for security systems, hurricane shutters, or impact-resistant windows.
Just remember: insurers usually require proof. That might mean receipts, photos, or inspections before they apply the discount.
“Savings” that can seriously backfire
Cutting coverage might lower your bill, but this is where many homeowners get burned.
One common mistake is switching from replacement cost to actual cash value coverage. That means depreciation gets deducted from your payout—often leaving you short when repair costs are high.
Another risky move is underinsuring your home. If your coverage doesn’t reflect today’s rebuilding costs, you could be stuck paying the difference after a major loss.
What to review before you renew
Before renewing—or even mid-policy—take a few minutes to look closely at:
- Exclusions (floods, sewer backup, outdated materials)
- Deductibles, especially wind or hail deductibles
- Coverage limits for valuables like jewelry or art
- Dwelling coverage (Coverage A) to keep up with rising rebuild costs
- Ordinance or law coverage, especially for older homes
That last one is often overlooked, but it can make a huge difference if your home needs to be rebuilt to modern code.
Bottom line
Don’t focus only on the premium. A cheaper policy that leaves gaps can cost you far more later. A short review now—shopping rates, asking about discounts, and checking coverage details—can protect both your wallet and your peace of mind.
If insurance costs are climbing, staying informed is one of the best savings strategies you’ve got.
