January 26, 2023
It’s a question lots of people are asking. Recently, you may have noticed that your homeowners and other insurance premiums have been going up. You’re not alone. The fact is, homeowners across the U.S. — including here in Westchester and the New York tri-state area — are noticing their premiums rising as well.
What is driving home insurance premium increases?
Insurance rate increases are primarily due to rising inflation factors coupled with recent big weather events. As a result of devastating hurricane and wildfire seasons in other parts of the country, the insurance industry has experienced record-setting claim payouts and financial losses. As a result, many insurance carriers are increasing rates across the board to ensure they can successfully meet the demands of future claims.
From May 2021 to May 2022, the price of goods and services increased by 8.6% in the U.S. Economic factors related to inflation and challenges with home-related supply chain issues in the building labor and materials sector are also driving premiums up. Labor and material costs are up nearly 20%, according to the National Association of Home Builders.
How the states stack up: New York fares (fairly) well
Despite these circumstances, insurance companies are working to protect your home and other assets, but they need to raise premium costs to keep up with current trends and to ensure you are adequately protected in the event of damage to them. But not all states are experiencing the same premium increases. According to Policygenius Home Insurance Pricing Report.
- In multiple states, such as Arkansas, Washington and Colorado, home insurance costs have increased at more than double the rate of inflation.
- New York was the only state with a premium increase lower than the inflation rate, at around 8%. Homeowners in New York saw the lowest increases at renewal since last year, with an average premium increase of just $56.
Is there anything I can do to lower my insurance premiums?
While many market conditions that affect your insurance premiums may be out of your control, there are steps you can take to help keep the cost of your coverage in check.
- Minimize potential claims. Check with your agent about any savings you might qualify for as a result of the preventative measures you take. For example, some carriers offer discounts for smoke detectors, fire alarms, water sensors, interior sprinkler systems and smart home protection devices.
- Review your policy. Ask your insurance agent to review your current coverage to ensure you’re getting the customized protection you need. Make sure all home improvements are accounted for. Cancel or reduce coverage you no longer need.
- Increase your deductible. A higher deductible will likely reduce your premium. Just remember to have enough savings to cover your deductible should you experience a loss.
- Bundle up. Some carriers offer discounts when you purchase more than one policy with them. Home and auto are commonly bundled for a discount, but discounts may also apply to boat, valuables and personal umbrella protection.
Rey Insurance: Offering you the very best coverage for your peace of mind
Insurance is a means to protect you, your family and your assets. The time to confirm whether your coverage is adequate is not when it’s time to file a claim; regularly check to make sure your policies are in good shape. As independent insurance brokers, the professionals at Rey Insurance take pride in ensuring that our clients have the coverage they need when it matters most. We’ve been advising and customizing plans for satisfied customers for over 40 years. Find out more about how Rey Insurance can help you. Visit www.reyinsurance.com/homeowners or call 914-631-7628.
