Why Your Home Insurance Rates Are Going Up at Renewal

Here are some of the reasons why your premiums are on the rise.

While you understand that your home insurance premiums will go up when you file a bunch of claims, you may be surprised when you see your rates increase even though you have a clean claims history.  However, your insurance premiums can also go up due to factors outside of your control.  Here are some of the reasons why your home insurance rates may be increasing.

  • Frequency of Extreme Weather Events

In recent years, the number of wildfires, windstorms, hurricanes, tornadoes, and other extreme weather events have increased significantly.  As the frequency of these damaging events increases, insurance companies must increase their rates so they can keep up with resulting home insurance claims.

  • Local Crime Rates

When calculating your premiums, your home insurance provider will look at the local crime rate to determine how likely you are to become a victim of theft or vandalism.  If your local crime rate has increased over the past year, then your insurer will consider you a higher risk to insure.  As such, they will also increase your premiums.

  • Cost of Repairs and Replacements

As the cost of emergency cleanup services, skilled trades, personal belongings, and home values increase, so does the amount of money that insurance companies have to pay to address policyholder claims.  Insurance companies will increase policy premiums to offset the higher cost of claims.

These are some of the reasons why your home insurance rates might have increased at renewal.  Do you have more questions about your homeowners insurance?  If so, then contact the experts at Pierce Insurance Group.  Our dedicated team is eager to assist you with all your home coverage needs today.

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