Ohio home insurance rates continue to rise, along with rate increases across the country, leaving homeowners wondering about potential solutions. There are ways to lower homeowners insurance, including policy reviews, risk inspections, and bundling insurance.
According to a recent Newsweek report, the cost of home insurance in the U.S. increased by over 40.4% between 2019 and 2024. The rate surge leaves many homeowners questioning how to keep coverage affordable without sacrificing protection.
Understanding what drives insurance rates and considering five practical steps any homeowner can take right now to manage the financial strain can help you gain control over rising homeowners insurance rates.
1. Review the Data That Drives Your Rate
Homeowners insurance pricing depends heavily on background data that most people never see. Insurers rely on an insurance score that combines multiple factors, and small errors in any of them can drive up your premium. Four main data sources play a role:
- Credit details that influence your insurance score
- Claim history from your current and prior properties
- Property condition records that may be outdated
- Third-party databases like LexisNexis or TransUnion
Pro tip: Ask your insurer which data provider they use and dispute outdated information directly. Also, request a loss run report, which lists every claim tied to your address. Correcting errors or removing aged claims can lower your rate without changing coverage.
2. Audit Your Coverage
Many homeowners focus primarily on the premium, but honing in on the premium costs risks overlooking what your policy covers. It's not uncommon for insurance policies to include outdated, overlapping, or unnecessary coverage. Understanding what you're actually paying for and how it aligns with your home's current value can help you avoid overpaying.
Verify Your Home's Rebuild Value
Insurance policy premiums are based on the cost to rebuild your home, not its market value. Homes are often under- or over-insured because estimates haven't been updated in years. A professional assessment ensures coverage reflects the true replacement cost, especially after changes in construction prices or home improvements.
Request a Replacement Cost Recalculation
Even though your policy included a replacement cost estimate when it was first written, that number can get outdated fast as materials and labor costs change. It's a good idea to call your insurer and ask them to run a replacement cost recalculation.
The cost recalculation can highlight coverage gaps or show if your premium is higher than necessary. It's a simple step that won't cost you a penny, and it helps make sure you're only paying for the protection your home actually needs.
Examine Optional or Redundant Coverage
Some policies include extras that might not apply to every home or could overlap with other protections. Things like equipment breakdown coverage or identity theft protection may not be needed for every homeowner. Take a close look with your agent to see which add-ons make sense for your situation, and which ones could be trimmed without leaving your home unprotected.
3. Bundle Insurance Strategically
Bundling your home and auto insurance used to be the go-to way to save, but it's not always the cheapest option anymore. Some carriers are raising homeowners insurance rates faster than auto premiums, so it pays to compare.
Working with an independent, trusted agent at a company like Hummel Group Insurance can help you explore all your options. Your agent is your best ally for bundling strategies or "split-bundling," where your home and auto policies are with different insurers to maximize savings.
4. Reassess Your Deductible
A deductible should reflect both your risk tolerance and your ability to cover unexpected costs. The right choice balances premium savings with financial preparedness in the event of a claim.
- Evaluate how often claims occur in your area
- Assess your ability to cover out-of-pocket costs
- Consider the impact on long-term premiums
- Factor in seasonal or extreme weather risks
- Align risk tolerance with household finances
Pro tip: Keep your emergency fund aligned with your deductible so you're not caught off guard if you file a claim.
5. Get a Home Risk Inspection Before Renewal
Insurance carriers use third-party data to evaluate risk, including factors like the condition of your roof or nearby wildfire exposure. If you request a pre-renewal inspection on your own, you can often correct issues before your insurer runs a home report and raises your rate.
Ask for your CLUE Home Report (Comprehensive Loss Underwriting Exchange). It's like a credit report for your property's insurance claim history.
Frequently Asked Questions About Homeowners Insurance Rates
Why Are My Homeowners Insurance Rates Going Up?
The U.S. Treasury cites climate change as a critical cause of rising homeowners insurance rates. As insurers face larger losses, they're raising premiums to cover the growing financial risk.
All insurance rates are affected by the economy. In addition to climate change, inflation also contributes to higher costs.
How Does Weather Impact My Rates?
Homeowners insurance rates reflect local weather risks. In ZIP codes with frequent severe weather, homeowners generally pay higher premiums because insurance providers anticipate more claims.
In Dayton, Ohio, severe weather, including tornadoes, heavy rainfall, and hail, can significantly impact insurance rates. Understanding your local risks helps you make informed decisions about coverage, and partnering with a trusted insurance agent ensures your policy matches the specific threats your property may face.
Does My Home's Location Affect My Insurance Premiums?
Yes, location can affect your rates in ways you might not expect. Insurers look at more than just weather or past claims. They also evaluate things like how close your home is to a fire station or hydrant, or even how far you are from the nearest city.
Location factors can explain why neighbors with similar homes sometimes pay very different premiums. Talking through the details with your agent can help make sure your rate reflects the actual risk and resources available where you live.
Save Money Despite Homeowners Insurance Rates Rising
You can't control the main drivers of rising homeowners insurance rates. That doesn't mean you have no control over your costs. Follow our tips to save money.
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This article was prepared by an independent contributor and helps us continue to deliver quality news and information.
