“In most states, an insurance score, which is in part determined by a credit score, represents the likelihood of a claim being filed and affects the premium a homeowner will pay for coverage,” Ben said. Madick, co-founder and CEO of Matic. Assurance. “The housing market, the cost of materials and the cost of labor were on the rise even before COVID-19.
“We are now seeing these increases reflected in the estimated replacement cost of the home (coverage A) which ultimately results in increases in insurance premiums, among other factors. While homeowners with lower FICO scores have seen a disproportionate increase, they receive better coverage and the gap between premiums and A coverage is narrowing.
Read more: Mercury Insurance lowers auto and home insurance rates in Georgia
The study also found that homeowners over 63 are the most likely to overpay for home insurance. While premiums tend to be highest for homeowners aged 43 to 55, premiums for seniors do not fall proportionately, Matic found. Data suggests seniors are paying too much because they don’t regularly check their policies and annual premium increases accumulate over time. Matic found that seniors could save an average of $ 751 per year just by monitoring, reviewing and adjusting their insurance policies.
“There are many factors that contribute to significant savings,” Madick said. “Home improvements and car consolidation can play a role, but the most common occurrence is when a customer has lived in the same house for over 20 years. Even without a claim, a homeowner will likely experience a 3-4% increase in their premiums each year. Over time, this increase is not negligible.
Industry studies have found that 40% of homeowners have not reviewed their policy in the past two years.