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Home prices continued to rise last year, with the average value increasing by 4.7%. But in some areas of the country, houses are actually losing value.

Homes impacted by climate-related risks like flooding and fire are seeing their values fall. CNBC recently said that some Americans don't get their homeowners insurance policies automatically renewed because of these risks. And their property values fall up to 12% when they don't.

Making matters worse, some insurance companies aren't renewing homeowners insurance policies because of these risks. In California, State Farm and Allstate no longer issue new policies for homeowners insurance because of wildfires. And in Louisiana and Florida, some homeowners are having trouble getting new policies renewed because of flooding risks.

Even if your homeowners insurance policy hasn't been canceled, it's likely increased in price. Homeowners insurance premiums jumped an average of 11% in 2023. If you need cheaper insurance, here are a few things you can do.

Shop around and talk with an agent

Whether your insurance policy was canceled or you're just looking for a better deal, it pays to shop around. Consumer Reports says only 13% of homeowners shop around for insurance, but 39% of those who comparison shopped found a better price.

It's easier than ever to do this by shopping online and requesting rate quotes from insurance providers. It's a good idea to get quotes from at least three companies so you can compare them effectively.

If you don't have the time to do this, you may want to work with an independent insurance agent. These agents can find policies from competing insurance companies, making it more likely that you'll find the best deal.

Assess your current coverage

If you're at risk of having your policy canceled or you're looking to save money on your insurance premiums, it's a good idea to see what your policy covers. You may be able to drop coverage for something you don't need, which can lower your premiums.

Raising your deductible can also help. An analysis by Insurance.com found that increasing your deductible from $500 to $2,500 could lower your premium by about $500 annually.

Bundle your insurance

Many companies offer discounts on insurance if you bundle your homeowners insurance policy (or renters) with your car insurance policy. While the percentage varies, many consumers often save 20% off their insurance premiums by bundling, and can save up to 25%.

If you're paying two separate providers for your home and auto policies, contact both companies, get quotes for their bundled policies, and choose the one with the most coverage for the best price.

While you have them on the phone, ask what other discounts you may be eligible for. Many companies offer discounts if you're a senior citizen, your home has a security system, and even if your neighborhood has an HOA.

Buy your policy through Costco

As if there weren't enough reasons to love Costco already, the company offers home and auto insurance to its members -- and it might be cheaper than what you're currently paying.

An analysis by This Old House found that Costco's homeowners insurance, issued by American Family Insurance, costs just $73.50 per month on average. That's about half the cost of the national average.

As an added bonus, Costco also offers members some special perks if they sign up for homeowners insurance, including identity theft protection, glass repair and replacement, and home lockout assistance.

Most homeowners won't lose their insurance policies to climate-related events, but that doesn't mean you shouldn't try to find a better deal. Spending a little time comparison shopping, considering a higher deductible, and bundling your home and auto policies are all great ways to lower your homeowners insurance costs.

Our picks for best homeowners insurance companies

There are many homeowners insurance companies to choose from. We’ve researched dozens of options and short-listed our favorites here. Looking for a green build discount or easy bundle policies? Want an easy-to-use interface? Read our free expert review and get a quote today.

We're firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers. The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.Chris Neiger has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Costco Wholesale. The Motley Fool has a disclosure policy.