No one likes shopping for home or auto insurance. Here are tips to make saving less onerous

By Nicole Norfleet

Star Tribune (TNS)

Jay Schleicher has seen his fair share of insurance claims during his career as an agent.

Like when a renter fluffed a blanket and tore down a ceiling sprinkler, flooding their townhome unit with $40,000 in water damage. Or when a homeowner came back from vacation to a wet, stinky basement thanks to a backed-up sewer drain. Earlier this month, someone drove through a yard and hit a client’s house.

People buy insurance for their home, car, RV or motorcycle because the law requires it. Then they forget about it until something bad happens, Schleicher said.

"‘I bought this online awhile ago,’ and then they don’t know what they have for coverage," said Schleicher, owner of BlueJay Insurance Agency in Minneapolis. "People don’t want to talk about (insurance) or think about it, but this is something that you are paying for for many, many years."

Shopping around for insurance has always been essential to make sure you find the best deal and have the right coverage for unexpected emergencies. But as the costs to repair and replace possessions continue to rise — and the prevalence of extreme weather also increases — choosing an insurance carrier and coverage has become an even more important decision.

"The last time you want to find out what your coverage is is when you are submitting a claim," said Grace Arnold, commissioner of the Minnesota Department of Commerce. "It’s not always pleasant to think about all the bad things that might happen to you or your property, but it’s really important to be prepared and insurance is a way to help you to be prepared."

You likely have started to notice your insurance premiums rising in the past year. The U.S. Bureau of Labor Statistics reported the price of car insurance increased in March by more than 22% compared to one year ago, the largest annual jump since 1976.

Home insurance has also shot up as insurance companies try to recoup their losses from higher repair costs and extreme weather claims. Minnesota’s average annual premium for home insurance is $2,476 a year for a home with a dwelling coverage amount of $300,000, according to a report Bankrate released this month. That’s $323 more than the national average.

Minnesota has the second-most extreme weather of any state in the nation, trailing only California, according to the Insurance Federation of Minnesota. Since 1980, Minnesota has experienced about 60 weather disasters — from hail to floods to tornadoes — that have caused an estimated $20 to $50 billion in damages.

"That means more losses that we are paying out," said Aaron Cocking, president of the Insurance Federation of Minnesota.

Cocking said in some other states like Florida and California, there are signs of "insurance deserts" with some insurers leaving areas because of the rising costs of natural disasters.

Since last summer, insurance companies in Minnesota have been stricter with their underwriting as they try to limit their losses, said Tom Wertish, founder of Chaska, Minnesota-based Options Insurance agency.

Now insurance companies want to inspect houses within the first 60 days of policy signing. Even before inspection, agents check street views and property sites to gather data on homes.

So make sure your home, especially the outside, looks well maintained, almost as if you were listing it for sale, Wertish said. Trim trees that look like they could be overhanging near the house, he said.

Bundling several policies also makes you a better candidate, Wertish said, since currently, insurance companies won’t want to take on a customer for just one home insurance policy by itself.

Update your insurance coverage after major life events, like marriage, Schleicher said. But also check it every three to five years, especially if you’ve had negative dings on your policy like a speeding ticket or accident. Such incidents could impact the price of your policy for years to come.

Let your insurer know of any major renovations to your home so you can increase your coverage. Renovations could also give you a discount if you updated big-ticket items like a roof or furnace.

You can change your insurance at any time. You can also do a quick review of your policy during your 30 to 60-day renewal period before your policy automatically renews.

"That’s your time to start think about, ‘Do I want to go and look at options in the marketplace today?’" Wertish said.

Assess the valuables inside your house. If you have expensive items, such as jewelry or art, you might want to add a rider for extra coverage.

David Joles/Minneapolis Star Tribune/TNS