Everyone loves to save money. When in charge of maintaining a family household, it is mandatory all pennies be accounted for as multiple people must be clothed and fed. Many of those individuals, will not be working for a decade or more.
With the rise of natural disasters across the United States, home insurance analysts have a new type of warning for those ignoring the issue. Not only will everyone see damage and chaos around the globe, but now it the destruction will be seen with bank accounts as well. Until the number of those settling insurance claim disputes from disasters declines for a long period, prices will continually rise.
What causes the rise of prices?
According to Ohio TV news network WCBI (see here), whenever a natural disaster strikes in an area, the chances of it repeating are high. For example, if one tornado strikes within a county for the first time, this means something has changed.
That same county is now fertile grounds for tornados in general. This rule is applicable for any type of disaster whether it be hail, flooding, sinkholes, or natural fires. The only natural disaster somewhat left out of this habit is perhaps hurricanes as its built on moving water and winds.
Now that this trend has become well-supported by weather data, home insurance companies have taken notice. As soon as something strikes, executives in the company ‘press the button’ to increase prices in the region of the disaster. The price of the insurance plan may not increase immediately but it will happen.
The worst part of prices going up quickly is simply the fact they do not go down in the same manor. There has to be a long, extended period without any disaster, for the premium to go down or simply stop rising.
3 Ways to Save with Home Renovations
To counter the rising expense of insurance for ‘la casa’ you sleep at, you can’t rely on nature to help you. Instead, when making renovations to your house its important to consider changes that help you. According to ValuePenguin.com, there are three updates that companies usually lower rates for.
The first, check with your agent to see if your home meets the modern building codes. 8% of your premium can be saved simply by making sure you meet city standards of safety that may have changed in recent years. In Florida, Communities with the highest Building Code Effectiveness Grading Schedule, got this discount.
Second, add wind-mitigation features to your home. To get these, you must pay a professional for the inspection of your property. They will survey your land for features that are susceptible to damage from wind or hail damage. Once these are rectified, show the inspection to your insurance company and ask them if fixed, will it lower your rates. If yes and the amount is a greater saving than what you will spend to fix, start the renovation process immediately.
Last, are your major home systems up to date? Check to make sure your plumbing, cooling system, and electrical wiring meet all the latest safety standards. Insurance companies charge less for new homes because chances are, it’s a lower risk with the latest technology and materials. Updating your own home’s systems to the most modern options lowers risks of malfunctions, which lowers the cost to insure as it logically should.
In conclusion, not much can be done about natural disasters. These will occur forever. However, one might want to consider weather disaster statistics of the recent 10 years before choosing a location to live long term. If things happened frequently or recently, home insurance rates will likely continue to grow higher in subtle increments for the next few years.
Watch a video below on saving money on home insurance for extra tips on retaining your money.