Homeowner’s insurance tips from an Indiana actuary

Your home is a major financial investment, and protecting it is non-negotiable. However, everything from utilities to groceries seems to cost more than it did just a few years ago. Hoosier families are looking for places to save.

As a homeowner myself, I know that a home is often more personal than just an investment. It's where you raise your kids, host holidays, unwind and build a life. As Indiana Farm Bureau Insurance's chief actuary, I spend a lot of time looking at the numbers behind insurance costs. I want to share some practical steps that can make a difference for homeowners who are willing to take a close look at their coverage.

Understand what's impacting your premium

It's hard to find savings if you don't know what's contributing to insurance costs in the first place. Before looking at individual policy choices, it's important to recognize that some of today's premium pressure comes from broader trends homeowners can't control. Severe weather, higher repair and rebuilding costs and rising labor and material expenses can all affect what it costs to insure a home.

Some of the factors that influence your homeowner's insurance premiums that you can control may include:

Your deductible: Choosing a higher deductible can lower your premium, though it does mean more out-of-pocket expense if you have to file a claim.

Your home's age and condition: Aging roofs, older electrical systems and worn plumbing can all push rates higher.

Where you live: How close you are to a fire station, local weather history and neighborhood risk all factor into your premium.

Your claims history: Past claims can influence what you pay today.

Your coverage choices: The more coverage you carry, and the more endorsements you add, the more your policy is likely to cost.

Once you have a better sense of the factors that shape your rate, you're in a much stronger position to have a meaningful conversation with your agent.

Don't leave discounts on the table

This is probably the most common missed opportunity I see. A lot of homeowners simply don't know what discounts are available. It's important to ask which discounts you may be eligible to receive.

At Indiana Farm Bureau Insurance, policyholders may qualify for more discounts than they might expect. There are discounts for bundling policies, paying your premium annually instead of monthly, going paperless, installing a home security system and many more. These are all discounts that can work in your favor and help lower your premium.

It's worth the time it takes to make a quick call to ask your agent about the discounts you currently have applied to your policy and what you might be missing.

Don't check out, check in with your agent

Life changes, and your insurance policy should change with you. If you remodeled a kitchen or finished a basement since your last coverage review, those changes almost certainly affect your insurance needs. An annual review with your agent helps you make sure you're not overinsured or underinsured. These meetings can also help surface new savings opportunities along the way.

The best long-term strategy is fewer claims

Claims history plays a role, with fewer and less severe claims often being rewarded over time. Stay on top of routine home maintenance related to your roof, plumbing, HVAC system and so on. Catching small issues before they turn into big, claim-worthy problems is key. It's not the most exciting advice, but it can certainly help.

A bit of effort to understand coverage, keep claims in check and connect with your agent can net you some real savings in this time of tighter budgets.

Brian Poole is the chief actuary at Indiana Farm Bureau Insurance, an insurance company headquartered in Indianapolis with offices in all 92 counties. Poole is an experienced professional with 38 years' experience in the actuarial field. Coverages and discounts described are for general informational purposes and do not amend, modify or supplement any insurance policy. Subject to eligibility requirements, policy terms, conditions and exclusions.