Homeowners insurance premiums have increased 10% since last year, after similar increases in 2023, according to the National Association of Realtors.
And the increase is even higher in storm and wildfire-ravaged states, but there are several ways you can lower your rates.
Paul Burns has spent the past few years making sure his home is in top condition with a new roof, siding, and air conditioning. Despite these improvements, he was shocked to receive a $300 annual rate increase.
"I am like how much did it go up? And they told me and I'm like this doesn't make sense!" Burns said.
What made the increase even more frustrating was that he had never filed a claim on his policy.
"No, I've had no claims," he said.
Burns says his insurer blamed rising replacement costs for the premium hike.
He called them, saying, "You raised my insurance almost 25% because building materials went up? That's crazy!" he said.
Holden Lewis with NerdWallet explains that extreme weather is one of the main reasons for home insurance increases across the country.
"We're seeing more frequent disasters, and when they hit, they're hitting more areas," Lewis said.
The other significant factor driving up rates is inflation.
"When it costs more to repair a house, it's gonna cost more to insure that house," Lewis said.
How to reduce your homeowners insurance costs
To help keep costs down, NerdWallet's Lewis recommends several strategies:
- Shop around for different insurance carriers
- Bundle your home and auto insurance policies, which often gives you a better rate
- Be aware that your credit score could affect your premium
- Weatherproof your home, which can give you a discount
"Especially in hurricane country, keeping your roof relatively new, having storm-resistant windows and shutters," Lewis said.
Adding a home alarm will also lower your rate with some insurers. Finally, consider raising your deductible—the amount you have to pay after making a claim.
Burns was able to reduce his rate somewhat by making adjustments to his policy.
"So I had to raise my deductible from $1,000 to $2,500 so I could afford it," he said.
Check your policy and take action if it goes up to avoid paying more than necessary.
That way you don't waste your money.
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