Now that the new year is officially underway, you may be approaching the renewal period for your homeowners insurance. During this period, your insurer will provide you a summary of your coverage and inform you of any premium changes. If your rates have gone up, then there are many explanations for this increase. Here are some of the factors that can increase your home insurance premiums.
If you have recently completed home renovations or updates that increase the value of your property, you may have to increase your home insurance coverage limits accordingly. More coverage means higher premiums, so this could explain why your premiums have increased.
Oftentimes, homeowners that have recently filed a claim experience, their rate increases. This is because home insurance providers offer discounts to reward policyholders who don’t file claims. Once you file a claim, you lose out on this special discount, meaning that you are charged more for your coverage. Fortunately, you can once again gain access to lower insurance rates if you manage to stay claim-free for an extended period of time.
In recent years, the number of wildfires, windstorms, hurricanes, tornadoes, and other extreme weather events have increased significantly. As the frequency of these damaging events increases, insurance companies must increase their rates so that they can keep up with resulting home insurance claims.
These are some of the factors that can increase your home insurance premiums. Do you have more questions about your home insurance? If so, then contact the experts at Mike Leonard Insurance Agency. Our dedicated team is eager to find you the right coverage from one of our many carriers, including: Kemper, State Auto, MetLife, Nationwide, Travelers, The Hartford, Safeco Insurance, Progressive, and American Strategic Insurance.