With the increased price of lumber, we suggest increasing your insured home value now. How do I lower my Home Insurance premium if I am increasing my home’s insured value? There are few ways to adjust your current policy by adding an endorsement, ask your agent for a policy review, and check to see if you qualify for additional discounts.

In order to lower your premium, it is important to understand one of the large factors that create the home premium. The cost of building materials is skyrocketing along with the cost of construction. Lumber played an outstanding role in that increase rising a staggering 42% over the past year. Lower housing inventory and historic demand in Texas, especially the Austin and surrounding areas created a challenge. The inventory shortage has caused the median house price to surge in the past year. This means there is a shortage of labor, skilled craftsmen, trade workers to repair your home if there is a loss and the cost to repair would be much higher than the limits listed on your policy.

You can add the Extended Dwelling Endorsement for a lower out-of-pocket premium compared to increasing your dwelling A limits. Extended dwelling coverage helps you rebuild if construction costs increase due to inflation, natural disaster, hurricane. Your home is currently insured for 100% of its estimated reconstruction cost, with the cost based on the value of your house when the policy was originally written. This endorsement can increase your home’s insured reconstruction value by 25%, 50%, 75%, or even 100%. Ask us to add this coverage to your home or condominium insurance policy if it is not already included.

Homeowners, Renters, Townhome, and Condo insurance policies are even more affordable when you consider the discounts available. You may qualify for policy discounts that could reduce your premium.

Advance quote -Request a quote one or more days ahead of the effective date of your \ policy and qualify for an advance quote discount.
Newer system or appliances-Home built less than 10 years ago, or those whose renovated plumbing, heating, HVAC, and/or replaced a roof age, may qualify for a newer system discount on their homeowner’s policy.
Multi-policy-If you have an in-force Auto or Umbrella policy in addition to your home policy, you may qualify for a bundle discount on your policy.
Billing plan Pay your premium in full at inception and qualify for a discount. Some annual term policies offer a two-pay plan can also pay the billed amount in full and receive this discount.
Preferred payment Enroll in electronic funds transfer may receive a discount and lower monthly transaction billing fee.
Claim-free clients who have been claim-free for three, five years or more, may receive a discount.
Burglar alarm Advise your agent of an approved and properly maintained burglar alarm system qualify for a burglar alarm discount.
Sprinkler Condo, Townhome, or apartment dwellers who have a fire sprinkler system in accordance with nationally accepted fire sprinkler standards may qualify for this discount.

Another way to save your money is with a Single Loss Deductible. If you have bundled multiple policies with one company such as home, auto, boat, camper, or motorcycle they may waive some of your deductibles. In the event of a single significant loss, a deductible may be waived once the home deductible is paid if the amount of the home loss exceeds the home deductible. Below are some example scenarios that show where the single-loss deductible is and isn’t applied:

A tree falls on your garage, where the car and boat are stored at your home. If the roof of the garage, car, and boat is damaged by the tree, the insurance company may waive the boat and car deductibles once the home deductible is paid.
A hailstorm causes extensive damage to your roof as well as the camper travel trailer parked in your driveway. The insurance company may waive the travel trailer deductible once the home deductible is paid.
Your new teen driver accidentally backs into the metal mailbox and dents the car. In this case, the single-loss deductible doesn’t apply, because the loss to the home isn’t greater than the home deductible. Your auto deductible would apply to the vehicle in this scenario and the mailbox would be repaired “out of pocket” since mailbox damage was lower than your home deductible.

With the increased price of lumber, we suggest increasing your insured home value now. Please contact our office for a policy review, quote comparison, and discount check-up to be sure your policy is in sync with your changing insurance needs and inflation.

The above discounts and features vary by the insurance company. Descriptions of insurance products and packages are meant to offer general ideas only, are necessarily brief, and are subject to policy provisions, limits, deductibles, exclusions, and conditions that can only be expressed in the policy itself. In the event of a conflict, the terms and conditions of your policy prevail. This information is provided solely as an insurance risk management tool. It is provided with the understanding that we are not providing advice or any other professional services. We shall have no liability to any person or entity with respect to any loss or damages alleged to have been caused, directly or indirectly, using this information.

About the author

Riley Britton