By Farm Bureau Financial Services on January 30, 2025
Why Homeowners Insurance Is Going Up — and What You Can Do About it
Costs are rising in the insurance industry. Learn why home insurance premiums increase and what you can do to keep your costs under control.
What's Behind Increases in Homeowners Insurance?
Homeowners insurance rates are climbing for a few reasons.
Homebuilding materials are getting more expensive.
Bad weather is striking more often.
Cost and availability of insurance for insurance companies.
The companies that provide a backstop to insurers for large losses and catastrophic events (known as reinsurers) are also reacting to increased storms and building costs.
Insurers are paying more in claims than they earn in premiums.
How to Lower Your Home Insurance Expenses
Factors like the costs for building materials, labor availability and extreme weather are out of your control, but you can do a few things to lower your homeowners insurance costs while you keep your home protected.
Ask your insurance company if they offer a discount for multiple insurance policies.
You may save money if you bundle your home and auto. You may also qualify for one deductible, which is when a single event like a storm damages different types of your property, you pay the deductible only once.
Talk to your agent about life insurance or annuities.
Some companies will provide a discount on your home and auto insurance if you use them for your life insurance and/or annuity needs.
Find out if you get a discount for living in a new home.
Since all your materials, fixtures and systems are new, your company may provide a discount.
Mention when you get your roof replaced.
Let your agent know if you have replaced your roof within the last few years or plan to do so soon. Homeowners’ premiums tend to be lower for newer roofs since they withstand severe weather better, particularly in areas subject to hail damage. If you’re replacing your roof, consider materials that are certified as impact-resistant, as that could result in an even greater discount.
Install home protective devices.
Protecting your home from break-ins, fires or water damage may lower your rates. Many insurers offer discounts for smart devices such as water sensors as well.
See if you qualify for a loyalty discount.
Sticking with the same insurance company may save you money over time.
Get Help Managing Your Home Insurance Costs
A Farm Bureau agent can help you understand rate increases and make sure you have the coverage you need. Reach out to your local agent today for a SuperCheck® to review all the coverage you have in place, how you’re protected and where you might want to make changes.
