Homeowners Insurance | Bankrate.com (2024)

FAQs

What is one way to lower your premiums on your home insurance? ›

Raise your deductible

The higher your deductible, the more money you can save on your premiums. Nowadays, most insurance companies recommend a deductible of at least $500. If you can afford to raise your deductible to $1,000, you may save as much as 25 percent.

Will homeowners insurance go down in 2024? Unfortunately, home insurance rates will continue to soar in 2024, according to Insurify's analysis. Annual home premiums are expected to jump by an average of 6% nationally, from $2,377 to $2,522. The rate hikes are projected to reach as high as 23% in some states.

Increasing construction costs and labor shortages play a role, too. “To help pay for these higher costs, insurers have increased policy premiums on homeowners in both high- and low-risk areas,” says Pat Howard, a home insurance expert at Policygenius.

Making improvements to the home, such as adding a new roof or updating your electrical system, may also make you eligible for a discount. A home and auto bundle is often the largest discount offered by insurers. Another way to lower your homeowners insurance premium is to increase your policy's deductible.

How often should you change homeowners insurance companies? It's recommended to review and reassess your homeowners insurance policy every one to two years, especially if there's been an increase in your premium or any changes in your policy or personal circ*mstances that could affect your rates.

Nebraska, Louisiana and Oklahoma have the highest average annual home insurance premiums in the U.S.

Oklahoma, Kansas, Nebraska, Florida, and Colorado are the most expensive states for homeowners insurance. Oklahoma has the highest average cost of homeowners insurance at $5,858 per year.

When it comes to insuring your home, the 80% rule is an important guideline to keep in mind. This rule suggests you should insure your home for at least 80% of its total replacement cost to avoid penalties for being underinsured.

Your rate could go up because of construction costs, building code changes or home improvements that could increase your rebuild cost. It's important to make sure you have enough coverage to rebuild your home by regularly reviewing your home details.

Some taxpayers have asked if homeowner's insurance is tax deductible. Here's the skinny: You can only deduct homeowner's insurance premiums paid on rental properties. Homeowner's insurance is never tax deductible your main home.

What is one way to lower your insurance costs? ›

Maintain a good driving record

Always avoid speeding, getting into accidents, and other driving incidents. Not only do you prevent expensive speeding tickets or other moving violation costs, you also help keep your insurance rates lower by proving you're a less risky driver.

Raise your deductible

The higher your deductible, the more money you can save on your premium, so if you can pay above the minimum $500 or $1,000 deductible, for example, you may reduce the cost of your homeowners policy.

Ask for a higher deductible

Typically, the higher the deductible, the lower the premium. Increasing your deductible from $200 to $500 could reduce the cost of collision and comprehensive coverage by 15% to 30%, according to the Insurance Information Institute, while upping it to $1,000 could save you 40% or more.