Homeowners Insurance Savings
Ah, the joys of owning a home. We own ours, but I know many who do not. Whether consumers rent or own, many are faced with annual insurance bills on their home, contents, or both. I annually dread our homeowners insurance premium, as more often than not, we’re faced with an increase. But this year, I actually picked up some unexpected homeowners insurance savings. Here’s how it worked out.
A Huge Increase
Last month, I received our updated homeowners insurance policy document and was horrified by what I saw. I expected an increase, as I’ve begrudgingly accepted some small hikes for the past few years. But this year was different. Our premium increased over 11% compared to last year. We haven’t made one claim since moving into our current home five years ago. Frustration set in.
I knew I needed to call my agent. While this annual ritual is generally futile, I do it out of habit. I find some sort of peace of mind by hearing why the rate went up, even if I’m too defeated to do something about it. This year, the call started out the same.
When I called to inquire about the substantial increase, the agent initially mentioned what I expected. She activated what I call the inflation force field, a seemingly impenetrable wave of excuses for charging consumers more. It would cost more to rebuild my home based off the cost of everything, and my updated policy reflected that. Okay, got me there. I asked what else we could do to bring the rate down. Next:
Agent: “Have you replaced your roof recently?”
Me: “Why, yes I have!”
She asked me to send an invoice and a confirmation of payment for the new roof, something I already had on-hand. A few days later, I received my updated, lower rate.
Okay, Maybe Not Really 20% Savings
Based on my initial premium quoted this year, my decreased rate reflected an approximate 20% savings. I knew not to puff my chest out too much here, as that wasn’t a true savings based off the prior year. Compared to last year, I effectively lowered the homeowners insurance premium just over 9% with the new roof installation. That’s a modest decrease, and hey, my rate didn’t go up. I’ll take this small win.
More Possible Moves
Of course, homeowners can make more tweaks/improvements to lower their existing insurance premiums. Plus, shopping around and changing insurers can result in substantial savings. We’ve done the former, but not yet the latter. Changing insurers can be inconvenient. Up to this point, I’ve valued my time more highly than the marginal premium increases. Insurers are onto that, inevitably.
I recently described how I’ve saved, obtained better service, or both by simply talking with others. This is just another example. But dealing with insurance companies will always be something I loathe. Nonetheless, I reminded myself to rise above it and work positively (as much as possible) to find an agreeable solution. I may not achieve the most successful results each time, but the effort is still a worthy one. Perfect is the enemy of good enough. How have you obtained homeowners insurance savings lately?
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