How Much Does Homeowners Insurance Increase Each Year?

Homeowners insurance is a necessity for many, but it can also be a major financial burden. Every year, homeowners insurance rates are increasing, making it harder for people to afford their coverage. Many people think that their premiums will stay the same from year to year, but this is not the case.

Factors such as changes in your home and your credit score can have a dramatic effect on how much your insurance premium increases each year. In this article we’ll explore what drives up homeowners insurance rates and how you can limit the amount they increase annually.

The average cost of homeowners insurance

The average cost of homeowners insurance has been on the rise in recent years. In 2017, the average premium was $1,228, up from $1,173 in 2016. This increase is due to a number of factors, including inflation and the rising cost of rebuilding a home.

While the average cost of homeowners insurance has increased in recent years, there are ways to keep your premiums low. One way is to shop around and compare rates from different insurers. You can also raise your deductible, which is the amount you pay out of pocket before your insurance policy kicks in. By doing this, you can lower your premium while still providing yourself with financial protection in the event of a disaster.

How much does homeowners insurance increase each year?

The cost of homeowners insurance is constantly on the rise. Each year, insurance companies raise their rates, and policyholders are left to foot the bill. But how much does homeowners insurance increase each year, on average?

According to a recent study, the average homeowners insurance premium has increased by 3.9% every year for the past decade. That means if you’re paying $1,000 per year for your policy today, you can expect to pay $1,039 next year.

There are a number of factors that contribute to rising premiums, including inflation, the cost of rebuilding homes after natural disasters, and an increase in claims frequency. And while there’s no way to predict exactly how much your premium will go up in any given year, you can be sure that it will continue to creep upward.

If you’re looking for ways to keep your costs down, consider raising your deductible or shopping around for a new policy every few years. And make sure you’re taking advantage of all the discounts you qualify for – many insurers offer discounts for things like installing home security systems or bundling your policies.

Why does homeowners insurance increase each year?

Homeowners insurance typically increases each year due to the rising cost of rebuilding a home and the effects of inflation. The amount your insurance premium increases will vary depending on your home’s location, age, and value.

Your home’s location plays a role in how much your homeowners insurance premium will increase each year. If you live in an area that is prone to natural disasters, such as hurricanes or tornadoes, your insurance rates will likely be higher than someone who lives in a low-risk area.

The age of your home is also a factor in how much your homeowners insurance rates will increase each year. Older homes are more likely to have costly repairs, so insurers may charge higher premiums for coverage.

The value of your home also affects how much you pay for homeowners insurance. If your home has appreciated in value, you may need to pay more for coverage. However, if your home has decreased in value, you may be able to get a lower rate.

How to lower your homeowners insurance rates

One way to keep your homeowners insurance rates from increasing each year is to shop around and compare rates from different insurers. You can also ask your current insurer for discounts and see if there are any other ways to lower your rate. Another way to keep your rates down is to make sure you have a good credit score, as this can help you qualify for lower rates. Finally, consider raised deductibles as a way to reduce your premium costs.


Homeowners insurance is an essential component of protecting your home and the assets inside it. Understanding how much your rates can increase each year will help you make better decisions when shopping for a policy and enable you to plan accordingly.

Although there are several factors that affect rate increases, being aware of them will help make sure you’re not taken by surprise if your premium increases more than expected. It pays to be informed so take some time to research homeowners insurance and find out what options may best suit your needs.