28 Feb Challenging homeowners’ insurance market expected to continue in 2024

By Anita Byer, Setnor Byer Insurance & Risk

Homeowners’ insurance is one of the most frequently purchased types of insurance. A lot of people struggle when this crucial coverage is unavailable or unaffordable. Unfortunately, it does not look like the hard homeowners’ insurance market of 2023 will be much softer in 2024. Many of the factors that challenged last year’s market remain. Inflation’s impact is still being felt. Natural disasters and severe weather conditions, particularly thunderstorms, are occurring with alarming frequency. As a result, the homeowners’ market is expected to remain hard and premiums are forecast to remain high or increase in the near future.

The 2024 outlook means that homeowners will likely struggle to find adequate and affordable insurance in a market with dwindling coverage options and surging prices. Homeowners, however, can take various steps to protect their homes, reduce the likelihood of claims, and potentially reduce their insurance premiums.

Hardening Your Home. Taking measures to protect your home from the elements can result in fewer claims and lower insurance premiums (discounts, credits). Protective measures can include roof upgrades, storm shutters, tree and brush trimming and removal, and the use of nonflammable building materials.

Security Upgrades. Updating your home’s security systems can prevent claims and help minimize the damage after a claim. Upgrades can include smart technology devices and systems, such as water leak detection systems, fire alarms and security cameras.

Eliminate Unnecessary Coverages. Homeowners’ policies often include coverages or limits that may be unnecessary or excessive. Modifying coverages to suit your specific needs may result in lower premiums.

Increase Your Deductible. The deductible is the amount you must pay before the insurance company starts paying a claim. Generally, policies with higher deductibles have noticeably lower premiums. This can be a good savings option for homeowners that can afford to pay a higher deductible.

Bundle Policies. Some insurers offer substantial multi-policy discounts. Consider buying your homeowners, automobile and umbrella policies from the same insurance company.

Explore Discount Possibilities. There may be several ways to qualify for homeowners’ insurance discounts. Some insurance companies, for example, offer lower rates if a homeowner has not filed a claim for a certain amount of time. In addition, retired people, military personnel and members of various organizations and associations may be eligible for reduced premiums.

Maintain a Good Credit Rating. Insurers are increasingly using credit information to price homeowners’ insurance policies and charging higher premiums to those with lower credit scores. Review your credit reports regularly and promptly correct any errors.

Homeowners shopping for insurance in this hard market should work with a reputable and experienced independent insurance agent. Shopping around can be time consuming, confusing and frustrating. Since independent insurance agents have access to multiple insurance companies, they can do the shopping around for you. Reputable independent agents are also more likely to know about special rates and discounts that may be available.

Please contact our team of experienced and responsive insurance and risk management professionals to find affordable options to protect your home and your business in this hardening insurance market.