Why Am I Seeing an Increase in My Homeowners Insurance Rates?

As a homeowner, insurance is critical in financially protecting yourself from property damages and subsequent fiscal consequences. However, while adequate homeowners insurance is essential for securing the financial investment you’ve made in your home, your policy is an investment with varying cost-effectiveness. With this in mind, you may need to ensure that you have the best possible deal on your coverage, particularly when many homeowners are seeing increased premiums.

What Are the Conditions of the Homeowners Insurance Market?
Although being notified that your premiums will increase is unpleasant news, you may take at least some solace in knowing that you are far from alone. In recent years, many homeowners have observed increased rates, often without altering their coverage or filing a claim against their policies. This is due to hard homeowners insurance market conditions, as increased claim costs and other trends and patterns have led to many insurance companies raising their rates.

Why Are Insurance Companies Increasing Their Rates?
Current homeowners insurance market conditions can be attributed to many factors, such as the following:

Economic conditions—Lingering inflation, high building cost materials and labor shortages in the construction sector have all continued to impact homeowners insurance rates, as companies must account for higher claim costs due to repairs and rebuilds being more expensive.
Natural disasters—In recent years, homeowners and their insurance companies have been repeatedly beaten down by various weather-related incidents and natural disasters, including hurricanes, wildfires and floods. Many of these incidents have led to historically high financial losses and subsequent costly claims against homeowners insurance policies, forcing companies to increase their rates.

What Can I Do to Keep My Homeowners Insurance Rates Low?
Although global supply chains, nationwide economic conditions and weather patterns are not within the average homeowner’s control, there may still be steps you can take to keep your homeowners insurance rates from going up or at least limit increases. Consider the following strategies:

Bundle your policies. By purchasing multiple types of coverage, such as homeowners and auto, from the same insurance company, you may enjoy discounted rates.
Protect your home. Installing upgrades, such as security systems, a new roof and storm shutters, may all help lower your premiums.
Consider liabilities. Most homeowners insurance policies include coverage for personal liability, meaning removing related risks (e.g., swimming pools and trampolines) could help you save on coverage.
Adjust coverage. Altering the details of your policy, such as by increasing your deductible, could help reduce your premiums, although you should be sure to avoid leaving yourself underinsured.

We’re Here to Help
If you’re a homeowner in the Dunn, Coats, Angier or Erwin, North Carolina, areas, the agents at Jones-Byrd Insurance Agency are well-equipped to help you ensure you’re getting an ideal rate on your homeowners coverage. Contact us today to learn more.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.

Why Am I Seeing an Increase in My Homeowners Insurance Rates?

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