The short answer is yes. Your homeowners insurance rates can increase due to many factors. Your insurance rates depend largely on factors like the age of your home, your location, insurance score, etc. Your insurance rates can also increase as a result of factors that are not influenced by you. For example, rates may go up if carriers experience losses consecutively.
Let’s explain further as to why your homeowners insurance may increase and how you can keep your rates down.
Why Your Rates May Increase
Since your rates are largely determined by the coverage amounts in your plan, your home’s dwelling coverage (also known as rebuild cost) plays a huge part in how much you pay for homeowners insurance. If your dwelling limit is high, your premium will increase. Your home’s rebuild cost is affected by factors such as the price of construction materials and labor.
If local construction costs or labor increases, then your dwelling limit may also increase, leading to an increase in your insurance rates. Construction costs can increase due to various reasons such as weather catastrophes, disasters, and other factors.
Also, your rates may increase if your home needs upgrades. Your insurer may do an inspection after renewing your policy. They may review the roof, walls, and foundation. If the structure is in bad condition and needs an upgrade, then you may be given a timeframe to make the upgrade. If not, your rates may increase due to the increased risk of damage.
Another factor that affects your homeowners insurance rate is your insurance score. If your insurance score is low, then your premiums will be higher. Insurers calculate the insurance score by considering various risk factors such as safety features, claim history, and credit score. If you have filed multiple claims within a short period, then your insurer may increase your rates. Also, if you live in an area with many claims and increased risk, it may increase your premiums.
In some cases, if you add a pool or trampoline to your property, your rates will go up due to the increased risk of bodily injury.
How to Get Lower Rates
There are different ways to reduce your rates by getting discounts. Many insurers offer multi-policy discounts if you purchase multiple insurance policies from a single provider. You can also qualify for claim-free discounts if you have not filed any claims within a certain period. Some carriers offer discounts if you have certain protective devices or safety features on your property, such as smoke detectors.
Other types of discounts include senior discounts, long-term policy discounts, and first-time discounts. You can also reduce your rates by choosing a higher deductible.
Learn More About Homeowners Insurance
At Remco Insurance Services, we are dedicated to providing you with all the information you need to know about homeowners insurance and the rates you can expect. To learn more about homeowners insurance and what you can do specifically to lower your rates, give us a call today!