FRIDAY, APRIL 30, 2021
Why Did My Home Insurance Premiums Go Up for No Reason?
Although they might seem to change at random, home insurance rates are influenced by several different factors that can cause your premiums to suddenly rise.
Identifying these factors can help you keep track of how your home insurance rates change and when it is time to find ways to save money.
Your state and even your zip code can have an influence on your home insurance rates. One reason is the general cost of living in your area. Another reason is the rate of crime and natural disasters. Home insurance generally covers you in case of environmental disasters as well as theft and vandalism. The more likely you are to file a claim due to these reasons, the more you may pay for home insurance.
If there are a bad storm in the previous year that led to a lot of claims in your area, even if you didn’t file a claim yourself, you could see a rise in your home insurance rates.
Insurance providers view your credit score as proof of how reliable you will be when paying your premiums in full and on time. If your credit score changes, you may see related adjustments in your home insurance premiums. If your score drops, for example, your home insurance rates may rise in response.
Changes in Your Insurance Provider
Sometimes the differences come from another source entirely, such as changes with your insurance provider. If the agency changes its policies or suffers a major loss, you may see a related influx in the cost of your home insurance.
It is recommended that you review your home insurance policy around once every year so that you can keep track of changes to your coverage or premiums.
Upgrading your home can also influence your home insurance coverage and rates. Certain upgrades such as those related to safety (anti-burglary systems, weather resistant roof, fence, etc.) can actually save you money on home insurance while other upgrades (such as remodeling your kitchen) can raise your insurance rates. This is because home insurance is based primarily on your home’s total replacement cost value. If an upgrade changes that value, you will need higher rates of insurance and thus pay more for home insurance coverage each year.
If you have any questions about your home insurance policy or premiums be sure to speak with your insurance agent or shop around to compare quotes.
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It is not be used as a substitute for competent insurance, legal, or tax advice from a licensed professional
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