The cost of homeowner insurance in the United States has risen by an average of 50% during the past 10 years, according to a study conducted by ValuePenguin. The average annual cost for a homeowner’s insurance policy is $1,083. Rates vary widely by state. Florida, Texas and Louisiana lead the way as states with the most expensive rates.
Homeowner insurance is expected to remain on a steady rise across the country. But there are ways that homeowners can take action to lower their costs. One obvious way is to get a higher deductible. The drawback of that, of course, is you may more out of pocket when you need to use your policy.
An excellent way to lower homeowner insurance policy is to improve or get a new roof. Insurance providers like homes with new roofs because of all the ancillary damage that can be avoided. For example, a new roof will not leak, shingles will not blow off and houses and buildings are better protected from damage during storm events.
It is significant to note that insurance companies vary widely in their assessment of homeowner insurance costs. No doubt, some are willing to calculate more generous savings than others. But you will never know how much you can save if you don’t discuss this issue with your agent or shop around for providers who offer lower rates for new roofs.
Another way to lower homeowner insurance is to get an impact-resistant roof or impact-resistant product added to your current roof. This is especially that case for locations in the “hail belt” which is Texas, Kansas, Oklahoma and Nebraska. The highest frequency of hail damage occurs in the border regions of Wyoming, Nebraska and Colorado.
An important homeowner insurance term to know is “cosmetic damage exclusion.” What this basically means is that if a roof does not leak it will not be repaired or replaced by the insurance company. However, a non-leaking roof may not look attractive to a potential buyer, even if it is functionally sound. So an impact-resistant roof will reduce a policy premium price, but the homeowner must understand that coverage will be affected with a cosmetic damage exclusion.
There are other ways to lower homeowner premium costs, as well, such as considering a “bundle policy” that will incorporate issues pertaining to roofing. In general, however, a new roof will lower the cost of homeowner insurance.
