Why did my home insurance go up is one question we get asked frequently. The reason could be due to several factors Why did my home insurance go up is one question we get asked frequently. The reason could be due to several factors, some that will be in control and some that will be out of your control. Take a look at this rundown of both type of factors.
Factors Within Your Control Insurance companies determine the price of your home insurance policy, there are a number of things that are taken into account that you or your insurance history directly impact.
You have renovated or updated your house.
- Have you recently updated your kitchen or bathroom? Have you added in a walk-in closet? These are just a couple of things that could cause the value of your home to increase and if the value goes up so will your home insurance. That being said there are also improvements that can make you qualify for discounts you previously did not get. To find out about this please call your insurance agent.
You have had insurance claims.
- If you have had to make an insurance claim since you last renewed your policy you may lose the claim-free discount if you had qualified for it. Some insurers set a period of time and if you have several claims in that period you may be subject to a surcharge. To remedy this penalty or loss of discount, talk to your agent before you make a claim, you may find out that it would be cheaper, in the long run, to pay for the repairs.
Factors Outside Your Control
If your home insurance goes up even though nothing seems to have changed, you may find yourself wondering why. Let’s take a look at what could be the cause of this. Here are a few of the major contributors:
Unnatural weather or natural disasters are more frequently occurring. In our area wildfires, wind storms and torrential rainfall that cause damage are occurring with more frequency. With this happening the cost to insurance companies has also increased to deal with the number of claims. When this happens in an area the price of policies increases with the number of claims, even if you have not personally made one.
Crime has increased in your area. Insurance companies keep an eye on things like crime rates to determine the risk and the probability of a home in that area having a claim. If they determine that your area is now more subject to burglaries then you will see an increase in your home insurance.
The costs of trades and replacement costs have risen. If your home needs repair or you need to have belongings replaced it costs more today than it did even just a few years ago. Insurers take this cost into account when calculating your premium.
This should give you a little insight into your question “Why did my home insurance go up?” If you have any questions please contact us and we will be happy to answer any questions you may have. Also when talking to your agent – have them check other companies, you may be surprised at the difference in price.