With all the media attention on the California fires and how California is now undergoing a home insurance crisis– we are just curious, what do you foresee happening to homeowner insurance for homes in the Pittsburgh area?
The homeowners insurance market in Pennsylvania has been anything but predictable lately, and 2024 brought plenty of changes. Premiums skyrocketed—some as much as 50% (as was the case with our home)!—due to inflation, rising costs for building materials, and an increase in severe weather claims. On top of that, insurance companies tightened their rules, especially for older homes or properties in high-risk areas. Many homeowners now need inspections, updates, or even separate policies for things like flooding or wind damage just to maintain coverage.
Looking ahead to 2025, experts predict rates will continue to climb, with increases of 8-15% expected. But there are ways to ease the burden. Insurance companies are rewarding homeowners who invest in risk-reducing upgrades, like storm-resistant roofs, updated wiring, or fire-resistant landscaping. We added a whole house surge protector to our home to help mitigate the risk of future claims after we experienced a 2023 power surge that damaged many appliances. Small changes can add up, so it might be worth tackling those projects sooner rather than later.
Another way to manage costs is by raising your deductible. Many carriers are already requiring higher minimum deductibles, such as $2,500, so bumping it up even further could help lower your premiums. We made this choice in order to bring down the overall cost of our insurance, figuring we will not file smaller claims (as they will only increase future insurance rates). Bundling your home and auto policies is another smart way to save—your agent can help you explore these options.
The homeowners insurance market is complex and ever-changing, but staying proactive can make a big difference. With recent hurricanes and wildfires causing catastrophic damage in other states, it’s a sobering reminder that no home is completely immune to risk. Now’s the perfect time to review your policy, explore cost-saving options, and make sure your home—and your wallet—are ready for what’s ahead.
