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Navigating Skyrocketing Homeowners Insurance Rates Due to Climate Change and Inflation

If you’re a homeowner landlord, you’ve likely noticed your homeowners insurance premiums increasing substantially in recent years due to the increasing frequency and severity of natural disasters fueled by climate change. From hurricanes and wildfires to flooding and severe storms, insurers are being forced to raise rates to account for the escalating risks.

With rates spiraling out of control in some markets, it’s more important than ever to be a savvy shopper when it comes to your homeowners insurance policy. Simply renewing with the same carrier year after year is no longer a viable option. Here are some tips to help get the best coverage at the most affordable rates:

Shop Around Aggressively In this chaotic insurance market, don’t just get quotes from one or two companies. Cast a wide net by getting quotes from at least 5 different insurers of varying sizes and types. This increases your chances of finding the most competitive rates.

Some companies to consider reaching out to include:

  • First Citizens Insurance
  • Geico
  • Progressive
  • (Add 2-3 other recommended insurers for your area)

Realize that one or two companies may not even offer you a quote due to the heightened risks in your area. But by applying to 5 or more, you’re maximizing your odds of securing affordable coverage.

Compile Your Information Cleanly To make the quoting process easier, gather all the pertinent information about your rental property(ies) upfront in one place. This includes details like:

  • Construction type
  • Square footage
  • Number of units
  • Year built
  • Location/geographic risks
  • Current policy details
  • Claim history

Having this information organized and ready to go will streamline the quoting process with each insurer.

Consider Higher Deductibles One way to lower your premiums is by opting for a higher deductible that you’re comfortable covering out-of-pocket in the event of a claim. Increasing your deductible from $500 to $1,000 could translate into meaningful premium savings.

Fortify Your Property Let insurers know about any steps you’ve taken to fortify your property and make it more resilient against storms, fires, etc. Installing impact windows, roof straps, sump pumps and other mitigation efforts could help secure better rates.

Don’t Sacrifice Coverage for Cost While premium costs are a major concern, don’t go too bare-bones on your coverage just to save a few bucks. Make sure you’re adequately covered for the real risks you face. Otherwise, you could be hit with devastating out-of-pocket costs if disaster strikes.

In this era of climate change, securing affordable homeowners insurance coverage is becoming more challenging for landlords every year. But by being diligent in shopping your policy aggressively, you can increase your odds of lockingdown the most comprehensive coverage at the best possible rates.

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