Nine out of ten homeowners are paying more for insurance this year, and you may be affected by one or more of the following reasons.
1. Inflation, labor shortages, and supply chain issues have led to significantly higher building costs. This means the cost to rebuild your home after a disaster is much higher than in the past, which translates into higher insurance premiums.
2. The severity of recent natural disasters means that insurance companies are paying out more claims than they can sustain without raising rates. Your rates are likely affected if you live in a state that experiences hurricanes, tornados, cold snaps, or wildfires.
3. In connection with your claim history, your credit score is also used to predict how likely you are to submit a claim. A decrease in your credit score can lead to an increase in your insurance premium.
4. Additions to your home that increase your risk will lead to higher rates. Things such as pools, trampolines, and even pets can increase your premium!
Is there anything you can do about these increases? Yes!
1. Contact our office to discuss any increase. We can check for discounts or explore increasing your deductible to lower your rate.
2. Adding safety features such as deadbolts, smoke detectors, fire extinguishers, and alarms can lead to discounts.