Rising home insurance rates are a concern for many homeowners, especially in Minnesota, a state now known for its high number of catastrophic claims. To help homeowners better understand these changes and how to navigate them, Sadie Murphy of North Central Insurance shares her expertise on deductibles, material matching, and cost-saving tips.

Why Are Home Insurance Rates Increasing?

Over the last 5-7 years, insurance companies have faced an increase in claims due to natural disasters. In Minnesota, for every dollar collected in premiums, insurance companies are paying out $1.92 in claims. As a result, many insurers are raising premiums and adjusting coverage options to manage these costs.

Understanding Deductibles: Fixed vs. Percentage

Deductibles are your out-of-pocket costs before insurance kicks in. Sadie explains the difference between fixed deductibles (e.g., $1,000) and percentage-based deductibles (e.g., 1% of your home’s replacement value). For a $300,000 home, a 1% deductible means paying $3,000 out-of-pocket, while a 2% deductible doubles that to $6,000.

What Is Material Matching, and Why Does It Matter?

Material matching ensures consistency in your home’s appearance after a partial repair. For instance, if hail damages only one side of your home and the siding is no longer available, material matching coverage can replace all four sides, maintaining uniformity.

Top Tips to Save on Home Insurance

  1. Bundle Policies: Combine home and auto policies for significant discounts.

  2. Maintain Your Home: Update older features like roofs, furnaces, and water heaters to qualify for discounts.

  3. Install a Security System: Many insurers offer discounts for homes with certified security systems.

How to Contact Sadie Murphy

Got questions or need a quote? Sadie is here to help! Reach her at:

  • 📞 763-233-6402

  • 📧 sadie@northcentralinsurance.com

Conclusion

Understanding your home insurance options is the key to saving money and protecting your home effectively. Watch our full interview with Sadie Murphy to learn more about these essential insurance tips.