How to Lower Your 2024 Insurance Rates During an Historic Spike in Rate Increases: Thornton, CO

As we step into 2024, homeowners across the country are grappling with a significant spike in home insurance rates, averaging a staggering 27% increase country-wide. This surge is particularly pronounced in states prone to severe storms, such as Colorado, Florida, California, and Missouri. While the reasons behind these rate hikes are multifaceted and complex, homeowners can take proactive steps to mitigate their impact and secure the most favorable premiums possible. Here are 16 strategies to help you navigate rising home insurance costs without compromising on coverage:

1. Engage with Your Insurer: Your insurance agent is the best person to contact when your rates go up. They can look at your policies and analyze what could be added or changed to save you money. While loyalty discounts are not always substantial, some insurers offer modest incentives for longstanding customers, which is why it’s worth it to stay with one carrier for longer periods of time.
2. Comparison Shop: The perks of insuring with an independent agent is that they have access to multiple carriers and can re-shop your rates. However, as mentioned above, it’s important not to switch carriers often as it could affect your premium. In Colorado especially, many carriers are pulling back on how many policies they write, what zip codes they write in, and what coverages they offer. More often than not, it’s more lucrative to stay with your current insurer and play around with coverages than re-shop.
3. Adjust Your Deductible: Consider increasing your deductible to reduce your monthly premiums. Higher deductibles can lead to substantial savings, especially if you’re unlikely to file frequent claims.
4. Enhance Home Security: Invest in robust home security systems to mitigate burglary risks and qualify for insurance discounts. Opt for comprehensive security solutions recommended by your insurer to maximize savings. The most savings will come from externally monitored systems such as ADT.
5. Leverage Discounts: Take advantage of available discounts offered by insurers, such as bundling policies, installing safety features, maintaining a favorable claims history, or enrolling in your carrier’s telematics programs, which could save you up to 30% on your premiums.
6. Improve Your Credit Score: Work on enhancing your credit score to secure more favorable insurance rates. Timely payments and debt management can significantly impact your creditworthiness and insurance premiums.
7. Bundle Home and Auto Policies: Explore bundling options for home and auto insurance policies to potentially unlock substantial discounts. Evaluate both bundled and separate quotes to determine the most cost-effective approach.
8. Review Coverage Needs: Assess your insurance coverage to identify areas where adjustments or eliminations are feasible. Avoid unnecessary endorsements or redundant coverage to optimize your premium costs.
9. Invest in Home Improvements: Prioritize home improvements, such as roof upgrades or safety enhancements, to mitigate insurance risks and qualify for lower premiums. If you have a roof older than 10 years, this will greatly affect your premium. Just by having a 1- or 2-year-old roof could save you up to $1,000 on your premium.
10. Reassess Rebuilding Costs: Reevaluate your home’s rebuilding costs considering inflation and material/labor shortages. Ensure that your coverage accurately reflects reconstruction expenses without overestimating property values. Remember, insurance only covers the structure itself and doesn’t take into account the land it’s built on.
11. Consider Private Insurers: Explore options offered by private insurers, particularly for specialized coverage like flood insurance. Private policies may offer competitive pricing compared to government alternatives.
12. Opt for Actual Cash Value Policies: Assess whether actual cash value policies align with your needs, offering reduced premiums in exchange for adjusted claim payouts reflecting depreciation.
13. Exercise Caution with Claims: Minimize small or unnecessary insurance claims to avoid rate hikes and potential policy cancellations. Reserve claims for significant losses that warrant financial assistance. There are some companies that will refuse to insure you if you have more than 1 non-weather-related loss in 5 years.
14. Evaluate Pet Ownership: Be mindful of owning high-risk dog breeds, as they may impact insurance premiums or coverage eligibility. Research your insurer’s policies regarding pet-related liabilities to make informed decisions.
15. Maintain Continuous Coverage: Avoid coverage lapses to prevent premium increases and ensure financial protection against unforeseen events. Prioritize insurance coverage to safeguard your property and investments.
16. Consider Relocation: Assess the impact of your location on insurance rates and explore options in areas with lower risk profiles. Geographic factors, such as crime rates and natural disaster risks, significantly influence premium costs.

While navigating rising home insurance rates can be challenging, proactive measures can help homeowners secure affordable coverage without compromising protection. By implementing these strategies and staying informed about industry trends, homeowners can effectively manage insurance costs and safeguard their most valuable assets.

To assess your current insurance needs and talk about the impact recent insurance rate hikes will have on your policies, send us a message below!