What's Going On With Home Insurance And How Can I Keep My Rates Low?
Many homeowners across the country have seen home insurance rates rise in 2022. This increase is due to many factors over the past year. Claims are more frequent, building materials have been more expensive and harder to find, plus there is a shortage of workers in the construction industry. Together, this means the cost of rebuilding homes or making repairs has been higher, and many homeowners have seen rates go up as a result.
But what exactly is driving this trend in home insurance rates? And what can you do as a South Carolina homeowner to keep your bill low? Let's explore what's causing this change and share solutions to keep your costs down.
Know That LW Short Insurance Always Has Your Back
We know seeing an increase in your bill is not what you want! We don't want that either, which is why our agents are working proactively to review all available policies, options, and discounts to bring you the best price for the coverage you want in 2022. We are reaching out to our policyholders to review coverage, ensure everything is current, and get you today's best deals.
What is causing an upward trend in home insurance premiums?
- More claims have been filed this past year due to an increase in natural disasters.
On top of day-to-day weather-related losses, there have been eight major natural disasters with losses totaling over $1 Billion in damages in 2021. Carriers are anticipating that weather-related claims will remain higher in the coming year.
- Nationwide material shortages have caused supply costs to increase, especially for lumber and roofing materials.
Lumber and wood product prices are up 6.2% over last year, while asphalt roofing prices are up 16.3%. These costs make it much more expensive to repair and rebuild homes.
- A shortage of construction workers makes home building and repair more difficult and costly.
As of Summer 2021, there are 358,000 job openings in the construction industry, and this gap continues to grow. Builders need to be more competitive to attract and keep workers, which increases the total cost of repairs.
All these factors combine to drive costs up for insurance companies, which reflects in the rates they are offering this year nationally.
So what can you do to keep home insurance costs down?
- LW Short Insurance can help you switch carriers to find a better offer.
Because we are an independent agency, we review policies from all insurance carriers to compare prices, coverage, and discounts and bring you the best options. You aren't locked into using a single carrier, and we can build custom plans that work best for your family. Let us get you a better rate faster and with less headache than shopping for insurance solo!
- Consider increasing your deductible.
One quick way to lower your insurance bill is to increase your deductible. This can save you a lot on premiums now, and you can always increase your deductible again next year if you choose.
- Make sure policy limits reflect the actual cost of rebuilding your home.
Home insurance premiums are in part based on the projected cost of rebuilding your home using current rates. Many factors go into calculating this cost, and what a carrier may think they know about your home can differ from reality. Let us review whether your current rates reflect the actual cost of rebuilding in 2022 so you don't overpay on premiums.
- Lock in discounts for weather mitigation and other improvements.
Let us make sure you're getting all the discounts you deserve! If you've protected your property in various ways – including installing hurricane shutters, gable-end bracing, roof enhancements, and other weather mitigation features – you could save a lot on your monthly bill!
- Consider bundling insurance coverages to access multi-policy discounts.
Sometimes it's cheaper to use different insurance carriers for your home, auto, boat, business, recreational vehicles, and more. Other times, bundling under a single insurer can get you a big discount! We'll review rates for individual policies vs. bundling to find you the best deal.
- Reduce your contents coverage on wind and hail policies.
Similar to increasing your overall deductible, reducing contents coverage on wind and hail policies can reduce the cost of your insurance rates quickly.
LW Short Insurance Agency is here to help!
One of the biggest benefits of working with an independent agency like LW Short Insurance is that we do the hard work for you to create custom insurance plans drawing from the entire insurance landscape. We can bundle policies or explore different carriers to get you more options for the insurance you need at the best rates across the industry.
We are reviewing policies for savings and discounts, so you can be certain you are getting the right coverage at the best price. If you'd like to speak to your agent now, give us a call at (843) 357-7493, and we'll be glad to explore options and review your policies for more savings.
As always, thank you for trusting us with your insurance needs! We are grateful for the opportunity to serve you with quality insurance for South Carolina families.
