Insurance FAQ’s: Why did my home insurance go up?
We know It can be frustrating to open up your insurance bill and see that your home insurance went up. While home insurance rates have been pretty steady, most people are beginning to see an increase in their premium.
There are a lot of reasons why this might have happened. Let’s get into a couple of them.
You guessed it: Inflation.
Why does inflation affect your home insurance? It’s pretty simple. The cost of labor and construction materials has increased due to inflation. This affects your insurance price because if you were to have a claim and needed to rebuild parts (or all) of your home, it would be much more expensive to do that today. Insurance carriers would in turn be paying higher amounts to you when you file your claim. As the costs to rebuild continues to increase dramatically because of inflation, homes are requiring higher dwelling coverage limits to keep up with these rising prices. This increases home insurance rates.
Your home is in need of upgrades.
If you have an older home that is in need of a new roof or other fixes, as determined by a home inspection from your carrier, your home insurance rates could increase. This is because the likelihood of a claim is higher. By making upgrades to your home, you could help improve your home insurance premium.
You’ve had some claims.
If you’ve had any home insurance claims in the past couple of years, your rates are going to increase. That’s just how it goes.
You’ve made a change.
If you’ve added a pool, trampoline, or other “attractive nuisances”, your insurance rates are going to increase. This is because you’ve now increased the possibility of someone getting hurt on your property, which increases your chance of filing a claim. Your insurance carrier is going to charge you more because they think you are a riskier policy holder.
An increase in catastrophic weather events.
In 2021 alone, the United States had 20 weather events with losses costing more than $1 billion EACH. There has been an increase in these huge weather events which are incredibly destructive and expensive. These weather events include hurricanes, floods, wildfires and tornadoes. As the number of weather-related damages increases, home insurance increases as well.
While it can feel like many of these things are out of your control, there are things that you can personally do to help lower your home insurance bill. Keep your home safe and updated to avoid accidents and potential claims.Talk to your insurance agent to ensure that your policies are coordinated (our #1 tip for saving money!) and that you are taking advantage of all eligible discounts.
The Holley Insurance team would love to take a look at your homeowners insurance to ensure that you have the proper coverage. Start your quote online here or give us a call at 540.334.4225.
A little more about Holley Insurance…
Holley Insurance was founded in 2000, and retains a core base of loyal clients. We have locations in Roanoke, Rocky Mount, and Forest, VA. As an independent insurance agency, Holley Insurance represents a carefully selected group of financially strong, reputable insurance companies. Therefore, we are able to offer you the best coverage at the most competitive price. Holley Insurance was named “Top Insurance Broker in Southwest Virginia” by Virginia Living Magazine for 2021. If you’re interested in starting a quote online or having us take a look at your current policies, click here!