Homeowners Insurance Rates on the Rise in New England: How to Protect Yourself

June 27, 2024

Homeowners Insurance Rates on the Rise in New England: How to Protect Yourself

Homeowners in New England are experiencing significant increases in insurance premiums. This surge is driven by a combination of climate change, rising construction costs, and increased claim frequencies. Here’s a closer look at why rates are rising and what you can do to protect yourself.

Factors Behind Rising Insurance Rates

  1. Climate Change and Severe Weather: New England is facing more frequent and severe weather events, such as heavy snowfall, ice storms, and flooding. These events lead to higher claims and increased insurance costs. For example, Maine is expected to see a 19% increase in premiums due to rising sea levels and more intense weather extremes​​​​.

  2. Rising Construction Costs: The cost of building materials and labor has surged, driven by inflation and supply chain disruptions. This makes repairs and rebuilding more expensive, prompting insurers to raise premiums to cover these higher costs​​​​.

  3. Increased Claim Frequency: The frequency of claims has risen, partly due to aging infrastructure and higher property values, leading insurers to adjust their rates to manage the increased risk​​​​.

How to Protect Yourself

  1. Shop Around for the Best Rates: Compare quotes from multiple insurers to find the best coverage at the most affordable price. Independent insurance agencies, like Beacon Insurance Group at Asset Insurance Agency, can help you explore various options and find competitive rates.

  2. Bundle Your Policies: Many insurers offer discounts if you bundle your homeowners insurance with other policies, such as auto or life insurance. This can lead to significant savings​​.

  3. Increase Your Deductible: Opting for a higher deductible can lower your premium. Ensure that the deductible is an amount you can afford to pay out-of-pocket in case of a claim​​.

  4. Invest in Home Improvements: Enhancing your home’s safety and security can lead to discounts on your premiums. Consider installing storm shutters, reinforcing your roof, and adding a security system. These improvements can reduce the risk of damage and make your home more attractive to insurers​​.

  5. Review Your Coverage Regularly: Annually review your insurance policy to ensure it adequately covers your home’s current value and any new additions or renovations. Adjust your coverage as necessary to avoid overpaying or being underinsured​​.

  6. Ask About Discounts: Inquire about any available discounts, such as for being a long-term policyholder, having a claims-free history, or being part of certain professional organizations​​.

  7. Maintain a Good Credit Score: In many states, including those in New England, your credit score can impact your insurance rates. Maintaining a good credit score can help you secure lower rates​​.

Conclusion

Rising homeowners insurance rates in New England are a reality, driven by climate change, rising construction costs, and increased claim frequencies. By staying informed, shopping around, and making strategic choices about your coverage, you can ensure you get the best protection for your home at an affordable price.

For personalized advice and assistance, consider working with Beacon Insurance Group, a team at Asset Insurance Agency. We are committed to helping you navigate the complexities of homeowners insurance and find the coverage that best meets your needs.

Contact us today to learn more about how we can help protect your home and financial future.

Contact Information: Beacon Insurance Group
Asset Insurance Agency
Phone (call or text): (617) 386-9608
Email: [email protected]
Website: insurewithasset.com 

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