Have you thought about hitting the road and living the traveling life? Yes, we get that.
The rising cost of living in a traditional home is taking a toll on us.
According to the Policygenius Home Insurance Pricing Report, California homeowners saw a nearly 10% increase in home insurance prices from May 2021 to May 2022.
But this new year, the increase for the home owner and renter seems to be at an all time high.
In one case we know of, the premium for an individual policy in a fire hazard area increased from $700 in 2022 to $2,270 in 2023. No eat
The impact of natural disasters and the increase in the cost of materials and labor have caused companies in the country to raise their prices in recent years.
For some residents, the renewal rates can be very high, especially if they live in a high-risk area, such as areas near open areas. fire hazard. And that’s if regular home insurance is available.
Some companies have chosen not to renew the plans or may choose to remove the fire from the policy for buildings located in areas known to still have fire.
The only option left for those homeowners is the California FAIR Plan, which offers basic coverage for at-risk properties that conventional companies don’t.
Some traders say the home insurance market is the worst they’ve ever seen.
And for those who filed a claim recently, their increases may be even more severe.
It’s important to note that losses caused by floods and earthquakes are usually not covered by homeowner’s or renter’s plans.
Add in auto and health insurance costs and the cost of the policy will eat up a large portion of the family’s monthly budget.
It does not take into account the rising costs of housing, utilities, groceries, gas and other necessities. We can’t seem to catch a break.
Having insurance is important because it helps homeowners protect their greatest asset. Mortgage companies also need it.
To be fair, insurers have also been hit hard in recent years by climate change, natural disasters and other costs.
So what is the landlord/tenant to do?
1. Shop around and compare plans. Prices can vary significantly between services.
2. Increase your deductible to lower the deductible, but only have a portion of the deductible available in case something happens.
3. Take steps to protect your home.
4. Install a shutoff valve that can detect leaks and shut off water before serious damage occurs in your home.
5. Only make claims for big ticket events.
Although it hurts, nothing will completely take away the pain of those high bills, but every little thing counts.