Strategies that may help limit rising property insurance cost

Edited January 30th, 2024

The acquisition of adequate property policies remains expensive and complex. [1] Many insurers have “struggled to maintain profits in recent years, leading to increased premiums and even withdrawals from certain markets, such as Florida and California.” [2] For consumers, “understanding how its factors can affect homeowners is crucial for accurately assessing and addressing coverage needs.” [3]

Failing to carry an adequate policy could leave even the most responsible and diligent homeowners without the capacity to repair or rebuild their homes or otherwise manage the aftermath of a loss. [4]

Strategies for securing affordable property insurance:

1. Weather protection — “This may include upgrading a roof, installing storm shutters, trimming or removing trees and brush, and making use of nonflammable building materials.” [5]

2. Security upgrades — “By protecting their property from potential criminal acts, homeowners may also be able to reduce their perceived risk levels and access lower coverage costs. Installing smart technology, such as water leak detection systems, fire alarms and security cameras, could help lower premiums.” [6]

3. Tailor protections — “For example, increasing a policy’s deductible may reduce regular payments, although homeowners will need to pay more out of pocket in response to covered incidents before submitting a claim for financial aid.” [7]

4. Arbitrage — “Many homeowners can garner lower overall insurance costs by purchasing multiple types of coverage from the same insurance carrier. For example, an insured may package property, auto, and liability together. In addition, bundling policies may make it less likely for an insurance company to decline renewal or cancel policies in response to claims.” [8]

5. Discount possibilities — “There may be several ways to qualify for homeowners insurance discounts. Many insurance companies may offer lower rates if a homeowner has not filed a claim against their policy for a certain amount of time (three to five years). In addition, retired people, military personnel and members of various organizations and associations may be eligible for reduced premiums.” [9]

6. Credit score — Underwriters may use credit scores as an important factor; “keeping up with bills, limiting debts and balances, and maintaining a diverse credit portfolio, homeowners may enjoy lower premiums.” [10]

“Often, increases over a certain threshold are subject to government approval. Bureaucracy can slow the rate increase process, meaning insurers may be unable to charge an appropriate price for coverage. This may seem like good news to consumers, but it can actually lead to more issues—namely, scarcity of insurance options and higher prices for more limited coverage. Insurance companies are legally required to remain solvent. If they risk losing profitability, they may limit the scope of their coverage or withdraw from an area entirely. This is the cause behind a lack of affordable insurance options.” [11]


2024 Zywave, Inc. (2024). 2024 Homeowners Insurance Market Outlook. Zywave.