Oh No! A Surprise 14% Homeowners' Insurance Increase
Welcome to Saving Money with Andrew!
Last week, we had an unpleasant surprise. Our annual homeowners insurance premium increased by 14%, a dramatic increase on an already expensive policy. So we immediately contacted our insurance agent.
Unfortunately, she said that our insurer was passing along higher costs associated with increasingly common disasters and more expensive construction costs.
We had already increased our deductible to the highest level possible, following the tips in my 2021 post on Saving Money on Insurance and evaluating the savings against the potential cost of a higher deductible.
Our agent had a few other tips:
First, she suggested we reduce our coverage level for a small savings (a good idea, but important to make sure you have enough coverage for the value of your home).
Also, she listed several discounts. Among other things, our insurer offers significant annual discounts (over $500/yr in total) for:
Alarms with central monitoring
Water leak shutoff devices
Temperature monitoring
Lightning protection
Each of the discounts our insurer offered was significant, in some cases even exceeding the cost of installing the device within the first year.
And one other small tip: if your insurer accepts credit card payment of your premium without any additional fees, make sure to pay with a rewards card for cash back.
And now, Andrew’s pick(s) of the week:
A friend recently recommend the very enjoyable Rewatchables Podcast, which revisits a classic movie each week. If you’re ever looking for a fun movie suggestion, or want to hear a fun discussion of one of your favorite classics, you’ll love this podcast.
Also:
I hope this has been helpful. If you liked it, please share it on social media! Also, please send me your feedback, requests, and success stories.