The house is worth more? You’re Probably Not a Good Believer – 13 Ways to Save – Orlando Sentinel

The good news is that your home is like never before. This takes some of the sting out of the fact that the stock market is down, and you now need to work ten years longer than you planned.

But be encouraged. Real home prices. In 2021, the median home value in the United States increased by 17.1 percent, a record high, according to CEIC Data, a market research firm that has been tracking home prices for 30 years. That’s something given that the average annual growth is 5.3 percent. So go ahead, celebrate the stock boom in your house, and get your happy dance out of your system, because now the bad news comes:

If the value of your home increases, you are probably not a good insured.

“Besides home prices, construction costs have also gone up,” said Laura Adams, personal finance and insurance analyst at Clearsurance, an online platform that helps consumers shop and compare insurance plans to find the best value. “You are only covered to rebuild your home for the amount of coverage you have, and with increases in construction costs, many people don’t carry enough home insurance coverage to do so.”

the problem. I know. This is such a cavity. You hate paying for insurance, and so do I. The last thing you need is another problem to lose sleep. But you wouldn’t really be happy if your house burned down and you found out that you were only covered for what you declared your replacement value when you got the policy, when the house was much less valuable and building dollars went further. sigh.

However, before you dip your head into a tub of vodka, Adams has a better idea. Although you will probably need to contact your carrier to ensure that your housing coverage is sufficient to cover the full replacement value of your home, which means your prices will go up, you can also adopt a few strategies to minimum Your insurance costs.

“The price you pay for homeowners insurance depends on many factors, including types and amounts of coverage, location and features of the home,” Adams said. Then I offered the following 13 often-overlooked ways to lower the cost of home insurance, even if you need to increase your coverage:

  • Replacing old plumbing. If you update your plumbing and fix leaking pipes, you reduce the risk of significant property damage from a broken pipe. If you upgrade your plumbing, tell your insurance company.
  • Replace the worn out electrical. Since degraded electrical systems are a major cause of home fires, having a new electrical system installed reduces the risk of fire, and can also lower insurance premiums.
  • Get a new roof. Home damage from leaking roofs is another common and expensive claim, so insurance companies reward those with new roofs. When we replaced our worn-out roof last year, our premium fell by about 10 percent.
  • Fortify your windows against disasters. Upgraded features such as storm shutters and impact-resistant windows help protect homes from high winds, hail, heavy rain, flying objects, and other damage that comes with weather-related disasters.
  • Install a security system. Many smart home devices help people save money on their policies and avoid insurance claims. Among the technologies that could lead to insurance cuts are professionally monitored security systems, security cameras (including doorbells with cameras), burglar alarms, and water sensors that cut off the water in the event of a pipe break.
  • Collect your coverage. Ask your agent about buying more than one type of insurance policy with the same carrier, or about buying what’s known as a multi-line policy. Combining your home and auto or life insurance with the same carrier often results in significant savings.
  • Check out affinity discounts. Find out if your employer or any professional or alumni organization you belong to has a relationship with an insurance company that offers a discount that you may be eligible for.
  • Keep a good balance. Having good credit will save you insurance money in many states.
  • Increase your discount amount. Usually, the higher the deductible, the lower the premium.
  • Play the age card. Retired homeowners over 55 can qualify for lower rates.
  • Do not smoke. Smokers often pay much higher insurance rates.
  • married. Married homeowners usually pay less than single owners.
  • Shop, then be loyal. When looking for home insurance, shop and compare plans, discounts, and rates. Once you choose an insurance company, stick with the company. Loyalty is often rewarded with lower premiums.

Marnie Jameson is the author of six books about home and lifestyle, including What do you do with everything you own to leave the legacy you want?And Downsizing the Family Home – What to Save and What to LeaveAnd Downsizing a Compact Home – When Two Families Become One. You can access it at www.marnijameson.com.

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