Average Rates for Homeowners Insurance

When the insurance companies write policies for consumers they are looking out for themselves first. It’s not a surprise, and it is all part of doing business. The insurers need to make sure they have the money to pay out on valid claims.

In addition, the insurance companies do not want to pay out egregious claims. For that reason, they evaluate insurance applications for risk.

Be sure to always compare insurance quotes before deciding on a policy. Use the FREE tool at the top of this page to get started!

Evaluating the Risks

The other reason is that if the insurance companies do not look to their future, they would not have money to pay out on your claims.

If a couple has a fire in their apartment a few years before, they would have a history of a bunch of expensive insurance claims that pay out a huge sum of money.

It is not to say it cannot happen. Though, insurance companies are paying attention.

Average Homeowners Rates

Insurance prices are climbing, though there are average statistics kept on homeowners insurance. Climbing rates and unique situations make it difficult to expect to fit into the average rates.

Risk is any event that would translate into a claim for you. It may not be a fair assessment on the homeowner if they happen to have a few years’ freakish events in their lives.

If you are plagued by insurance claims, then it is time to prove your dedication to an insurance-claim proof life.

For instance, you might do the following:

  1. homeowners insurance averageDemonstrate commitment to securing your personal property with purchases and use of safes bolted to the floor.
  2. Show dedication to safeguarding your house with fire and safety monitoring systems.
  3. Having working smoke detectors, fire extinguishers, fire ladders, and a timed fire drill escape route.
  4. Get an estimate for how much it cost to rebuild your house.
  5. Demonstrate maintenance of the property to prevent claims.
  6. Purchasing special liability insurance if you have dogs, especially “dangerous breeds”.
  7. Making an inventory of your personal belongings with serial numbers, receipts, and photos.
  8. Holding off on making unnecessary claims.

Emergency and Catastrophic Losses Only

The idea is to hold off on making claims just for the sake of it. If you have, for instance, a window break, find your policy first. Is the window glass 100 dollars to fix, but would require a claim and a $500 deductible?

Then, the answer is to not call the insurance, not make a claim, and pay the money to fix the window yourself.

That way you get your window repaired your way as quickly as you want. In addition, you are ensuring that you do not build up any fuel for the insurers to work against you in the future. Otherwise, you might pay well into the future, in addition to the time spent making a claim, and shelling out a deductible and the premium.

Homeowners insurance is a last resort to call upon. It is meant for emergency situations.

In particular, it exists to rebuild your house if it is destroyed. A tree ripping through your house during an intense windstorm, hurricane, or snow storm, is just one example.

However, make sure you can prove that you have not been neglecting the rotting tree out back, whose branches finally gives way under the weight of the latest snow storm.

Geography Plays Its Role

For those in Minnesota, in particular, homeowners insurance rates have been rising to their highest rates in recent years. When deciding whether to file a claim, consider the future costs. In Minnesota, a 1,000 dollar claim would increase insurance for years by upwards of 20 percent per year or more.

Compare that to paying out of pocket, and keeping lower rates, and you may have found the best route.

  1. Get three free estimates for repairs
  2. Is it more than your insurance would rise?
  3. Is it worth it to make the claim?

From there you make a determination whether you make a claim or just pay the repairs on your own. The insurance companies do keep statistics on how often it is likely for a homeowner to need to file a claim.

It turns out once every 10 years, or every decade, is about average.

Twice in one decade is going to increase rates. Anything more than twice in one decade is asking for huge insurance premium increases.

Limiting Exposure to Nature’s Devastating Effects

Face it, wherever you live, there may be serious disasters that can strike. In Florida, it’s the dreaded harrowing hurricane and its aftermath. In Hawaii it could be a volcanic eruption.

In Missouri, it might be everything from tornadoes to that once every hundred year earthquake.

best home insurance companyIf you face serious issues, you have to show that you are working to weaken mother nature’s effects on your home. Or, at least show that you are trying to limit her effects.

For Floridians, it might mean having new hurricane shutters, and having the deck secured to your house.

In Missouri, it could be building your house on a different patch of land, having a cellar for storms, or a special construction to withstand earthquakes. It all depends on where you live. Showing a commitment to alleviating nature’s devastation goes a long way in limiting claims.

When you buy coverage for your home, be proactive.

Work on alleviating the burden of unnecessary claims for yourself and the insurance carrier. In addition, invest in better building materials, and additions to protect your home. From there, shop around among the many home insurance providers.

You may be surprised to learn what an effect sticking with the same carrier year after year might have on your policy premiums. Maybe you assume it keeps premiums low when you stick with the same carrier. Every time your policy comes up for renewal, shop for a new plan.

You might save a lot of money that way. The thinking is this. Insurers may offer something of a teaser rate to gain new business. They might offer a cut-rate price compared to your long time agent.

Comparing Companies for the Best Insurance

Start out by reviewing the policy documents from your last policy. If you are in the same house, and have no changes to your property, follow the same game plan as your latest policy. Unless you want to increase any deductibles, or curiously decrease any coverage, then use your last policy as the template when you shop.

  1. home insurance rate comparisonLook at the credit worthiness of the carriers.
  2. Only consider carriers with A or better ratings at such sites as Weiss Ratings, or A.M. Best.
  3. Get quotes.
  4. If the quotes are too high, then consider increasing deductibles.
  5. Do not forgo insurance that will pay to rebuild your home. Ever.
  6. Compare premiums.
  7. Choose the best carrier for the best price.

If the rates are all too high, consider increasing deductibles before you do anything else. Do not cut out coverage to rebuild the house. The reason you have insurance is so that the carrier will pay to rebuild.

Make sure you buy at least 80 percent of the value of the home’s price to reconstruct it. Otherwise, you may actually be denied claims or paid too little to build again, if you need it.

When you are buying coverage for your house, compare quotes. That will save you the most money in the long run. Be sure that you know when it is appropriate to make a claim versus when it’s best to skip it.

Maintain your home to keep it safe. Finally, choose the best policy at the best price.

Use the FREE quote comparison tool at the bottom of this page now!