Why Your Homeowners Insurance Rate Increased
Homeowners insurance rate increases are one of the most common questions we get, and it is understandable why that would be a source of confusion.
It is very rare these days to see the rate on a home insurance policy decrease, for a number of reasons.
- Most all policies have inflation protection, meaning that the dwelling coverage limit will increase by a certain percent to keep up with the increased cost to rebuild the home. For example, your home may have been covered for $250,000 last year, but this year it may be $257,000, which of course would result in a higher insurance rate.
- With every renewal your home is a year older, and so is your roof unless it was replaced in the previous year. The age of the home and roof are ratings factors, with newer homes and roofs costing less to insure. Any discounts for having a newer home or roof are diminished each year.
- The nature of insurance is “pooled risk,” meaning the insurance company bases their rates on losses from all their policies in a given area. So while you may not have filed any claims, if other people in your area have, that could impact your rates as well.
If you receive an unreasonable homeowners insurance rate increase and your agent doesn’t automatically re-shop for you, perhaps it’s time to find a new agent! Get a free quote from Integrity and instantly compare rates from 20+ A-rated carriers now
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Feel free to reach out if you have any insurance questions:
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