Each year, homeowners across the U.S experience sticker shock when they open up their notice for homeowner’s insurance renewal. Premiums are continuing to go up, and sometimes up a lot. Now, there are some homeowner’s that may see some lower rates than normal, but for the most part the trend is going in the other direction. The big question that many are now asking is why? Customers that may have never even filed a claim yet with their policy or who never have missed a payment are now seeing and receiving higher premiums each month. Why is this happening?

Just for a little perspective on the subject, you have to think about how cheap home insurance is when you compare it with the costly repairs that are associated with a disaster. When comparing the prices of your insurance with the price of a typical home repair, you are saving thousands of dollars. This makes home insurance look even better.

There are a couple of reasons why the premiums are continuing to increase and this includes catastrophes and too broad of coverage. Severe weather and devastating fires on the west coast are large contributors to this. The weather has only been getting worse over the last decade, and it will more than likely continue to do so as we move on. For example, one severe hail storm can generate tens of millions of dollars worth of damage. Since the cost of home repairs and construction has significantly increased, that only means that the cost of the claims will also increase.

The other factor in higher costs for premiums is the extremely broad coverage that we expect today. Since home insurance began, we have evolved to expect everything to be covered from personal items to even replacement costs. This has created an even larger gap between the premiums and the cost of covering the actual claims.

So what can you do yourself to keep the insurance costs down at your home? The first thing you will want to do is increase your deductible. A deductible of $1,000 instead of $500 can cut your premium per month by up to 25%. Also, it is a good idea not to file many small claims such as damaged fences or broken windows, something that can cost just a small amount. This will increase the cost per month and can even lead to your insurance carrier non-renewing your policy. Homeowner’s insurance is there to cover you in the face of a disaster, not to cover routine home maintenance. It is in your best interest as a homeowner to cover small damages yourself and save your insurance coverage for a major disaster.

You can even take steps at your home to prevent you having to file a claim in the first place; this means taking care of your home and providing annual maintenance. Here are some items that are usually overlooked but can save you money in the long run:

-Replacing rubber hoses on dishwashers and washing machines. This will help prevent water damage, and it is easy to find reinforced hoses at any local hardware store.

-Make sure your pipes are in good shape, and always check for cracks and leaks before the winter time to avoid freezing or bursting.

-Keep your gutters clean and free of leaves or other debris, and also check your roof for any missing shingles.

-If you live in an area prone to fires, clear the underbrush and trees away from your home.

-Keep a home inventory of all items in case of the event of a flood or fire, and keep it in a safe box that is fire and water retardant.

The insurance market is always expanding and changing, and we can always increase our knowledge on these subjects. Don’t take your homeowner’s insurance for granted and always stay in touch with your agent to stay up to date on your policy. An independent insurance agent that knows the ins-and-outs of your property can offer other steps to help keep your costs down in the long run.