Have you added a pool to your home?
If you’ve added a pool to your home, your insurance company is likely going to consider that a risk and increase your premiums.
This is because pools can be dangerous, and if something happens while you’re not at home, the insurance company could be on the hook for a lot of money.
They may also raise your rates if you have a fireplace, as that’s another potential hazard.
So, if you’ve made any changes to your home that could increase the risk of an accident, be prepared for your premiums to go up.
Your home is old
If your home is older, it’s likely that your insurance premium is higher than it would be if you had a newer home. That’s because homeowners with older homes are seen as being more at risk for things like fires and theft.
And since insurance companies charge based on risk, that means you’re likely paying more for your home insurance if you have an older home.
If you’re looking to save on your home insurance premium, one option is to get a policy with a higher deductible. This means you’ll pay more out of pocket if something happens to your home, but it will also lower your monthly premium.
Many homeowners are finding that their home insurance premiums are rising faster than inflation. So if you’re concerned about the cost of coverage, now is a good time to shop around and compare rates.
Maybe you lost previous discounts
If you lost some of your previous discounts when you renewed your policy, that could be another reason your premium went up.
For example, if you stopped bundling your home insurance with your car insurance or stopped being a member of a homeowners association, you may have lost some discounts.
Or if you increased the coverage on your policy, that could also lead to a higher premium. So, if you’re wondering why your home insurance rates went up, it could be because you lost some discounts. The best thing to do in cases like this is to call your local insurance agent.
Construction costs have skyrocketed due to inflation and the increased demand for housing
The cost of building materials and supplies has gone up in recent years, as has the cost of labor. This is due to both inflation and the increased demand for housing.
And since home insurance rates are based, in part, on construction costs, that means your premium may be going up soon too.
The rebuilding cost of your home, also known as dwelling coverage, is a significant element in determining how much you’ll spend in premiums — the higher your house limit, the greater your premiums.
So, what can you do to prepare for a rate increase?
- Shop around and compare rates when your policy is up for renewal
- Get a policy with a higher deductible
- Be aware of the risks associated with your property
- Live in a lower risk area if possible
- Consider bundling your home insurance with other policies
- Stormproof your home by installing hurricane shutters or impact-resistant windows and doors
While you may not be able to avoid a rate increase altogether, there are things you can do to mitigate the impact. By being aware of the risks associated with your property and taking steps to reduce them, you can keep your rates as low as possible. And when it’s time to renew your policy, be sure to shop around and compare rates to ensure you’re getting the best deal.
Finding the right home insurance policy is important, and it shouldn’t cost you an arm and a leg. Shop around to find a policy that fits your needs and budget.
Your home insurance premiums may be going up soon, due to a number of factors such as increased risk, construction costs, and inflation. There are steps you can take to minimize the impact, but it’s important to stay ahead of the curve and be prepared for rate increases when they come.
If you recently filed for an insurance claim and the results were not what you were expecting, contact us for a free claim analysis. We at American Premier Claims are here to help you through the entire claims process.
Call us now at 844-313-3155 for a free consultation. We’ll review your policy and make sure you’re getting the compensation you deserve. You may be surprised at what we can do for you!