The Kansas City metro experienced a
stormier spring/summer than usual. Tornados, hailstorms, high-speed winds, and lightning strikes have caused property damage. And that, unfortunately, leads to higher home insurance premiums down the line. Here's what you can do to prepare for rising costs:
Know your timeline
Insurance companies take about 12-18 months to adjust rates after severe weather events. That puts Kansas City homeowners on track to see increases next spring and summer. Home insurance typically renews on the anniversary of your purchase; check your policy paperwork for exact dates. If your insurance is paid out of your escrow account (which is typical if you have a mortgage), it may take even longer for your mortgage servicer to increase your payment.
Estimate your increase and start budgeting for it now
Insurance premiums in Kansas and Missouri increased by 13% on average from 2021-2024, according to a report from the Consumer Federation of America. Take your insurance premium and multiply it by 1.13 to get an estimate for what it could be next year. For example, a $2,500 policy could become $2,825. Insurance is typically paid monthly, so that's an increase of $27 a month.
Know what you can control, and what you can't:
Rates increase when insurance companies make lots of payouts due to lots of claims. Even if you've personally never made a claim, living in "tornado alley" means we
all pay more after severe weather affects the Kansas City region. However, you can still:
- Shop around. If you've been with the same insurance company for a long time, it's a good idea to get quotes from other carriers. Make sure you're not just looking at the premium price – review all aspects of the policy coverage so you're comparing "apples to apples." If you need help, work with a local insurance agent who will go over the policy with you line by line so you know what you're paying for.
- Know the age of your roof. Once your roof passes 10 years of age, your policy premium will automatically increase. If you aren't sure, check the paperwork from your home purchase: the seller's disclosure and inspection report typically has this information. Put a reminder on your calendar so you're not blindsided by the rate increase when it happens.
- Know your deductible and be selective about making claims. For any insurance claim, you'll have to pay your deductible before insurance pays out. If you have a high deductible, it may not be worth making a claim if the repair cost is close to the deductible amount. You'll get penalized (i.e. charged a higher premium) if you make a claim, even if your claim is rejected and you don't receive any payouts.
- Utilize other products to protect your home. Home insurance is for MAJOR damage: wind, hail, fire, etc. For protection from smaller breakdowns and mishaps, consider a home warranty. Home warranties cover the appliances in your home: typically your HVAC, kitchen appliances, minor plumbing and electrical. Check if your appliances are still covered by manufacturer's warranties - newer appliances often have a QR code on a sticker where you can easily find this information.
Wondering how storm damage and insurance claims may impact your home sale?
Contact me for a consultation!
