The Home Insurance Move That Could Save You $440 a Year

 

 

When you're planning a move, every dollar matters. Between your mortgage, utilities, moving expenses, and everyday costs, it can feel like the monthly bills add up fast. One expense that has become a bigger piece of the puzzle is home insurance.

According to Intercontinental Exchange, home insurance now accounts for 9.6% of the average monthly mortgage payment. That is a meaningful share of your housing budget, so it makes sense to pay attention to it.

The good news is there is some relief on the horizon. While home insurance premiums are still rising, the pace of those increases is slowing down. Even better, there are a few smart steps you can take that may help reduce what you pay.

 

Home Insurance Premiums Are Still Rising, But More Slowly

Over the past couple of years, home insurance costs have increased quickly in many areas. That has made budgeting for a move more challenging for both buyers and current homeowners.

But recent data shows that trend is starting to cool. In mid-2024, home insurance premiums rose 4.3% in a single quarter. By the second quarter of this year, that number had dropped to 1.8%. That marks the smallest quarterly growth in nearly three years.

That does not mean premiums are going down across the board. It does mean the rate of increase is easing, which is a welcome shift for anyone trying to manage monthly housing costs.

As Andy Walden, Head of Mortgage and Housing Market Research at Intercontinental Exchange, explains:

> "Property insurance has been a fast-growing component of the monthly mortgage payment, but this quarter's data shows the pace of increase is finally slowing."

That is encouraging news if you are buying a home, preparing to move, or simply looking for ways to keep your housing expenses more predictable.

 

Shopping Around Could Save You Real Money

Here is where you have more control than you might think.

Intercontinental Exchange found that homeowners who shopped around and switched insurance companies reduced their premiums by an average of 6.6%. Meanwhile, those who stayed with their current provider saw their premiums increase by 10.4%.

That is a significant gap.

In real dollars, homeowners who switched saved about $440 per year on average. And importantly, they were not sacrificing quality coverage to get there. In fact:

 

• Deductibles dipped by 1.4%

• Coverage limits increased by 7.3%

 

That means many people were able to save money and improve their policy terms at the same time.

If you are getting ready to buy, this is a great reminder not to accept the first insurance quote you receive. Compare multiple options, ask questions, and make sure you understand what each policy offers.

If you already own a home, it is worth reviewing your policy each year before renewal. Insurance pricing can change, and another provider may be able to offer a better rate or stronger coverage.

 

First-Time Buyers Can Benefit Too

Even if you are purchasing your first home, the same advice applies. It is easy to focus on your mortgage rate, down payment, and closing costs, but insurance deserves attention too.

Before you choose a provider:

 

• Get multiple quotes

• Compare coverage limits and deductibles

• Ask about discounts
• Review the policy carefully before signing

 

A little extra effort upfront can lead to meaningful savings over time. And once you move in, keep that annual review on your calendar. You are not locked into the first company you choose forever.

The Home You Buy Can Affect Insurance Costs

Another factor that can influence your premium is the home itself.

According to John Burns Research and Consulting, newly built homes are 10% to 15% less expensive to insure than older homes on a national level.

That does not mean a new construction home is automatically the best choice for everyone. But if you are open to a newer property, it could help lower your monthly insurance costs.

Why? Newer homes often include updated materials, newer systems, and modern construction standards, all of which can reduce the likelihood of certain claims.

So as you weigh your options, it may be helpful to look beyond the list price alone. The age and condition of a home can affect your long-term monthly costs in ways that are easy to overlook at first.

 

Smart Ways To Keep Insurance Costs in Check

If you want to stay ahead of rising costs, here are a few practical steps to keep in mind:

1. Compare quotes before you buy

Do not assume all insurance providers will offer similar pricing. Rates and coverage can vary more than many buyers expect.

 

2. Review your policy every year

Renewal time is the perfect opportunity to make sure your current policy still makes sense for your needs and budget.

 

3. Look closely at coverage details

The cheapest option is not always the best one. Make sure you understand deductibles, coverage limits, and exclusions.

 

4. Consider the age and condition of the home

A newer home may come with lower insurance costs, which can help your monthly budget.

 

5. Work with trusted local professionals

A knowledgeable real estate professional can help you think through the full cost of homeownership, not just the purchase price.

 

Bottom Line

Home insurance is taking up a bigger share of monthly housing costs than it used to, and that can feel like one more thing to manage when you are moving. But you do have options.

By shopping around, reviewing your policy regularly, and considering how the home itself may affect insurance costs, you may be able to keep more money in your pocket. In some cases, that could mean savings of around $440 a year.

If you're thinking about buying, selling, or making a move in the Atlanta area, Zac Pasmanick and The Zac Team would love to help you navigate every part of the process with confidence. Call 14045647272, email zac@zac.biz, or visit https://mlsinatlanta.com to get trusted local guidance and a personalized plan for your next move.