9 Ways to Save On Homeowners Insurance in 2024 (2024)

FAQs

How much will homeowners insurance increase in 2024? ›

The firm's Home Insurance Projection Report foresees a 6% rise in annual premiums in 2024. The increase will put the national average at $2,522 at the end of the year. With climate experts expecting a devastating hurricane season, home insurance costs are forecasted to surge even higher in 2025.

Increase your deductible

A quick way to reduce your premium is to raise your homeowners insurance deductible, the amount you pay if you have to make a claim.

Typically, the higher the deductible, the lower the premium. If you're in a position to cover more out of pocket if you file a claim, you could save on month-to-month costs. Raising your annual deductible from just $500 to $1,000 can save as much as 25% on premiums, according to the Insurance Information Institute.

A new system can significantly lower your insurance rates. This can be a good option for those who are in a rush to get the unit installed. If the company doesn't provide a discount for a new HVAC, you may have to wait several months to see the results.

Home insurance rate predictions for 2024

Homeowners can expect rates to continue to climb in 2024 due to severe weather conditions pushing many home insurance companies to raise premiums and become more selective in who they insure.

Auto premiums are unlikely to go down in 2024, but car owners have several ways to help reduce the cost of their insurance policies.

Cheapest homeowners insurance for seniors

According to our research, Erie and Auto-Owners are the cheapest home insurance companies in the country for most people, including seniors. The national average cost of an Erie home insurance policy is $1,284 per year, while Auto-Owners' average policy is $1,406 per year.

The cost of home insurance is still increasing due to the impact inflation has had on the previous losses experienced by the insurance company, the elevated cost of building materials and the future risk posed by extreme weather.

For example, homes that are closer to a staffed fire station tend to have lower premiums because in the event of a fire, it will likely be put out in a timely manner, minimizing the overall damage and cost to your insurer.

When it comes to insuring your home, the 80% rule is an important guideline to keep in mind. This rule suggests you should insure your home for at least 80% of its total replacement cost to avoid penalties for being underinsured.

Which is a type of insurance to avoid? ›

Defined Events Coverage

Unless the policy specifically defines a damage-causing event, no coverage will be rewarded to the claimant. Avoid policies in which the defined events are limited, improbable or irrelevant to your situation.

Do you need to keep copies of old insurance policies? In general, if you don't have any open claims, you don't need to keep old, expired insurance policies.

If you kept your air conditioner in good condition over its lifetime, expect to need a replacement in about 10-15 years. Keep in mind that as your A/C grows older, its mechanical parts can become unavailable or obsolete over time. If you aren't able to replace a broken part, you will need to purchase new unit.

Yes, installing a new HVAC system can increase your home value by 5% to 7% with a return on investment (ROI) of about 30%. This projected increase is especially true if you replace your current setup with an energy-efficient system, providing additional benefits to future buyers in the long run.

Home insurance will cover your AC unit if it's damaged by fire, lightning, vandalism, storms or other scenarios, or “perils,” your policy covers.

The insurance industry references the Consumer Price Index to measure inflation and adjusts rates accordingly. It's one big reason why property owners find that their home insurance keeps going up year after year, even if nothing's changed on their property.

Frequent natural disasters and high inflation have led insurers to raise premiums, and forced many customers to pare back their policies.

States with the highest home insurance rates

Oklahoma, Kansas, Nebraska, Florida, and Colorado are the most expensive states for homeowners insurance. Oklahoma has the highest average cost of homeowners insurance at $5,858 per year. Below, you'll see the top five most expensive states for homeowners insurance.

Over the next five years (2024‒28), we forecast that total insurance premiums will grow by 7.1% in real terms, well above the global (2.4%), emerging (5.1%) and advanced (1.7%) market averages. At this rate, India will have the fastest growing insurance sector of the G20 countries.