P.J. Miller - Vice President
The cost of home insurance is increasing for many homeowners around the country. There are a variety of factors impacting premiums such as supply chain issues, rising inflation and labor shortages. Homeowners insurance coverage is based on the cost to rebuild your home so if the replacement costs (e.g. fuel, copper, brass, lumber, labor) become more expensive, this is reflected in what you’re paying for coverage.
But there are ways to save and remain fully insured. Below, Vice President P.J. Miller offers advice for getting a lower insurance rate.
What can someone do to decrease their Ohio home insurance premium while remaining fully covered?
Increase your deductible. If you already have a $1,000 deductible, go to $2,500. If you’re currently lower than $1,000 deductible, increase to at least $1,000.
Check to see if your credit score is impacting your rate; it’s a significant part of the rate-making process. Have your agent or carrier re-run your insurance score with the insurance company; a low credit score and a high insurance score is not a good combination.
Do you have “toys” (jet ski, 4-wheeler, etc.) and jewelry insured? Review that coverage and maybe downsize the “extras.”
Are you bundling your home and auto insurance policies? If not, contact your agent or carrier and check the bundled rate.
What are some signs that it's time to find a new insurance company in Springfield, Ohio?
If they haven’t suggested or offered to do the above ideas, ask them about packaging everything. But a good insurance company/agent should be proactive in making suggestions to lower your rate while maintaining the coverage you need.
What are the best ways to shop around from multiple home insurance companies?
Contact an independent agent. They represent multiple carriers, some well-known and some you may have never heard of and let them do your shopping for you. Go offline and check with the local agent, they’ll have recommendations for you to consider.
What can someone do if they can no longer afford Springfield home insurance?
If you have a mortgage on your home, your options are somewhat limited because lenders require homeowner coverage to remain in-place for the life of the loan.
If you’re considering renting out a portion of your home to make extra money, check with your homeowner insurance company first to see if that’s permissible. You should also check with the lender.
Increase your deductible to lower your premium.
Ask your lender and carrier what amount of coverage is required to continue as a homeowner policy. You might be able to reduce coverage but only as a last resort.
Combine (bundle) your home coverage with your auto coverage. This typically offers savings.
If permitted, check with your agent to see if switching to a Dwelling Fire policy is permitted, if you can get past the hurdles mentioned above, it might save some on your premium. Coverage suffers, but if it’s a last resort.
If you can’t pay your premium, then the lender will issue “force placed” coverage – this rate is typically higher than your homeowner policy and all it is really doing is buying you some time so it’s a short-term answer, just not a good one.