Trim Your Home Insurance Premium
Kiplinger's Personal Finance|November 2018

Whether you stay with your current insurer or switch, you can lower your rate without sacrificing coverage.

Miriam Cross
Trim Your Home Insurance Premium

Car insurance companies are falling all over themselves to grab your attention with clever TV ads, giving the impression that lowering your premium is as easy as picking up the phone. But when it comes to homeowners insurance? Crickets.

Yes, it’s pretty quiet on the home insurance front. For years, insurance companies have played a game of chicken with policy holders who dare to use their insurance. They’ve threatened to raise premiums—or refuse to renew your policy—when you make too many claims. Just one claim can raise your premium if it’s the “wrong” kind—say, for plumbing leaks. Even many homeowners with no claims on their record are too intimidated to shop for a new carrier.

Homeowners insurance rates typically rise a bit each year to keep up with inflation. When you file a claim— especially for an event unrelated to a widespread catastrophe, such as a hurricane or wildfire—you can expect your rate to go up even more for several years. Having one claim unrelated to a widespread catastrophe within the past three years on your record can knock you out of the running for many insurers; two claims in that time frame make it nearly impossible to switch, says Spencer Houldin, president of Ericson Insurance Advisors, in Washington Depot, Conn.

File multiple claims and you risk having your current insurer drop you when your policy comes up for renewal. In that case, you’ll have to find coverage through a more expensive “surplus lines carrier,” such as Lloyd’s of London, which specializes in higher risks that standard insurers won’t touch.

This story is from the November 2018 edition of Kiplinger's Personal Finance.

Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 8,500+ magazines and newspapers.

This story is from the November 2018 edition of Kiplinger's Personal Finance.

Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 8,500+ magazines and newspapers.

MORE STORIES FROM KIPLINGER'S PERSONAL FINANCEView All
How identity thieves are exploiting your trust
Kiplinger's Personal Finance

How identity thieves are exploiting your trust

Con artists themselves are disguising as well-known brands to steal your money and personal information.

time-read
3 mins  |
February 2024
CUT THE COST OF YOUR WIRELESS BILL
Kiplinger's Personal Finance

CUT THE COST OF YOUR WIRELESS BILL

AT&T, T-Mobile and Verizon dominate the market, but smaller outfits offer similar network coverage at lower prices.

time-read
10 mins  |
February 2024
MAKING HOME ENERGY MORE AFFORDABLE
Kiplinger's Personal Finance

MAKING HOME ENERGY MORE AFFORDABLE

Households in need can get energy-efficiency upgrades, help with utility bills and more from this nonprofit.

time-read
2 mins  |
February 2024
A HEAD START FOR SAVERS
Kiplinger's Personal Finance

A HEAD START FOR SAVERS

The Saver's Credit is designed to help low- and middleincome taxpayers contribute to a retirement account.

time-read
2 mins  |
February 2024
Say I Love You With a Money Date
Kiplinger's Personal Finance

Say I Love You With a Money Date

To nurture a lasting bond with your partner, meet regularly to talk about money.

time-read
2 mins  |
February 2024
Plan for Your Own Elder Care
Kiplinger's Personal Finance

Plan for Your Own Elder Care

AFTER I wrote a series of columns in 2022 about elder care planning for family members, I received a number of responses like this one: “What about married couples who have no children or whose family members don’t live nearby?” wrote one reader. “Or a single individual with no close relatives? How should these people plan for their own elder care?”

time-read
2 mins  |
February 2024
OVERCOME RETIREMENT OBSTACLES
Kiplinger's Personal Finance

OVERCOME RETIREMENT OBSTACLES

Most likely, you'll encounter setbacks on your journey. But with careful planning, you can surmount them.

time-read
10+ mins  |
February 2024
Find the Right Budgeting App
Kiplinger's Personal Finance

Find the Right Budgeting App

Mint is closing up shop. Luckily, you have alternatives.

time-read
4 mins  |
February 2024
How to Use Leftover 529 Funds
Kiplinger's Personal Finance

How to Use Leftover 529 Funds

OR families who want to save for their children’s future higher-education expenses, a 529 collegesavings plan offers alluring tax-advantaged benefits. You can withdraw funds tax-free for qualified educational expenses, such as tuition, room and board, books, and computers.

time-read
2 mins  |
February 2024
Smart Borrowing in an Era of Higher Interest Rates
Kiplinger's Personal Finance

Smart Borrowing in an Era of Higher Interest Rates

There are strategies you can use to lower the cost of new and outstanding debts.

time-read
9 mins  |
February 2024