What Causes Homeowners Insurance To Increase?

If you’re like most homeowners, you probably don’t know a whole lot about your insurance policy. After all, as long as you pay your premium every year, what else is there to know? Unfortunately, there is a lot more to homeowners insurance than just paying a yearly premium. Your rates can go up for a variety of reasons, some of which are within your control and others that are not. In this blog post, we will explore the various factors that can cause your homeowners insurance rates to increase. From claims history to credit score and more, read on to learn more about what affects your rates and how you can keep them low.

Home insurance rates on the rise

As a homeowner, you’re likely always looking for ways to save money. However, one area you may not be able to cut back on is your homeowners insurance. In fact, home insurance rates have been on the rise in recent years.

There are a number of factors that can contribute to higher home insurance rates, such as inflation and an increase in the cost of replacement materials. But, one of the most common reasons for rising rates is simply due to the increased risk of severe weather events.

As extreme weather becomes more common, insurers are forced to raise rates to cover the increased cost of claims. So, even if you haven’t filed a claim recently, your rates may still go up if your insurer experiences an uptick in claims payouts due to severe weather events.

Of course, there are some things you can do to help offset rising rates. Reviewing your coverage periodically and shopping around for new quotes can help ensure you’re getting the best deal possible on your homeowners insurance. And, if you have a good claims history, you may be eligible for discounts that can help keep your rates down.

The top five reasons for rate increases

1. Insurance companies are required to pay out claims when homeowners make them. This causes rates to increase for everyone in order to make up for the money that is being paid out.

2. Home values have been increasing, which means that insurance companies have to pay out more money when a home is damaged or destroyed.

3. More and more people are making claims on their homeowners insurance, which drives up the cost of premiums.

4. The cost of building materials and labor has gone up, which means it costs more to repair or replace a home that is damaged.

5. Weather patterns have been changing, resulting in more natural disasters that damage homes and cause insurance rates to rise.

How to avoid rate increases

Homeowners insurance rates are constantly on the rise. In order to keep your rates from increasing, you need to be aware of what causes them to go up in the first place.

One of the main reasons that homeowners insurance rates increase is due to inflation. As the cost of living goes up, so do the prices of goods and services. This includes things like building materials, labor costs, and more. In order to keep your rates from increasing, you need to make sure that you keep up with inflation by shopping around for new quotes every few years.

Another reason that homeowners insurance rates increase is due to changes in your home’s value. If you make improvements to your home or if your home’s value goes up for any reason, your insurance rates will likely increase as well. You can avoid this by ensuring that you have adequate coverage on your home in case of a disaster.

Finally, another common reason for rate increases is simply due to the fact that you filed a claim on your homeowners insurance policy. If you have a history of filing claims, insurers will view you as a high-risk customer and will charge you accordingly. You can avoid this by being mindful of what types of events are covered under your policy and only filing claims when necessary.

What to do if your rates go up

If you are worried about your rates going up, there are a few things you can do to help keep your rates down. First, shop around and compare rates from different companies. Second, ask your agent or company about discounts that may be available. Third, make sure you are not overpaying for coverage by having too much or too little insurance. Finally, contact your state insurance department if you have questions or concerns about your policy or rate.


There are many factors that can cause your homeowners insurance to increase. Some of these factors are out of your control, like the amount of coverage your home needs or the claims history in your area. However, there are some things you can do to help keep your rates down, like shopping around for quotes and choosing a higher deductible. No matter what, it’s important to make sure you’re getting the best possible coverage for your needs so that you can be protected in case of an emergency.