Expert issues warning on overlooked factor that could be driving up your home insurance rates: 'An extremely heavy financial burden'

Home insurance costs are already through the roof, but experts warn that a common occurrence might be raising your home insurance, and you might not even know it.

What's happening?

A report from 2 News Oklahoma on the amount insurance now typically costs for Oklahoman homeowners made mention of a common factor that can raise insurance costs exponentially, and it may not be something of which most are aware.

According to Natalie Todoroff, Bankrate insurance expert, who spoke with 2 News Oklahoma, "A drop in credit can raise your cost around $5,600, which is an extremely heavy financial burden for most people."

That's why, if you're considering raising your deductible to lower the cost of your premium, you should be sure your deductible is something you have the savings to pay for if it's needed. If you don't already have the deductible money, you might have to take on debt to pay it, which not only lowers your credit score but also increases your insurance costs.

This increase doesn't even include the cost of flood insurance or anything extra like that, either; it strictly applies to your home's insurance policy. 

Considering that 2 News Oklahoma reported that the average Oklahoman homeowner's home insurance cost is $4,600 per year, the increase in insurance costs resulting from a credit score drop could be steep.

Why is this concerning?

Home insurance costs are already astronomical in many parts of the U.S., so unknowingly causing them to rise even more with a drop in credit could put homeowners at risk of losing their insurance altogether. 

As the use of dirty energy continues, more heat-trapping gases will be released into the atmosphere, resulting in more instances of extreme weather events, like flooding, wildfires, and tornadoes. These events threaten our communities with loss of property and life, but they are also causing insurance companies to continue increasing insurance premiums or even drop coverage altogether in high-risk areas.

Constantly rising premiums make homeownership less affordable for many, leaving those with houses to decide if having insurance is worth it in the first place or whether just paying for rebuilding themselves is preferable. Eventually, insurance costs may make homeownership untenable for many. 

How can I lower the cost of my home insurance?

2 News Oklahoma had many suggestions on ways homeowners could keep premiums lower, offered up by Todoroff. 

Check your insurance policy at least once a year, so you're up-to-date on what's in it and ensure it covers everything you need. If you have questions about your policy, have your insurance agent walk you through the policy and explain anything you're unclear about. Additionally, if you can afford it, raise your deductible.

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