Why Your Home Insurance Rates May Have Gone Up
Factors leading to home insurance premiums increases.
As a homeowner, you understand why your insurance rates increase after filing a claim. However, it’s important to know that your claims history isn’t the only thing that affects your rates. Here are some of the other factors that can cause your homeowners insurance premiums to increase at renewal.
- Increased Likelihood 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.
- Increasing Local Crime Rate– 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.
- Increasing 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 homeowners insurance rates may have increased this year. Do you have additional questions about your home coverage? If so, then contact the experts at James Page Insurance. Our dedicated team is eager to assist you with all your home insurance needs today.