WEDNESDAY, APRIL 6, 2022
There are a few reasons you may experience an upward swing in your home insurance rates. The good news is that there are ways you can help lower your premiums.
Talk with your agent at Ed Weeren Insurance Agency in Austin, Texas, to get help understanding your home insurance coverage and rates.
Why Did My Home Insurance Rates Go Up?
There are many factors that insurance companies consider when they set home insurance premiums. Your neighborhood, the area of the country where you live, the type of home you own, recent natural disasters in your area, your claims history, your insurance score and safety hazards on your property can affect your insurance rates.
When you renew your policy, you may notice a rate increase. Here are a few common reasons your insurance company may raise your premiums:
- Your home needs upgrades. If your insurer inspects your home and finds that your home’s structure requires updates, they may provide you with notice that you have a certain amount of time to complete those tasks. If you don’t make the requested upgrades, your rates may increase when renewing your home insurance policy.
- Construction costs increased sharply. When construction costs increase, the amount of money it may cost to rebuild or repair your home after a covered event also goes up. Your insurance company may balance its risk of paying higher construction costs by increasing your insurance rates, even if you’ve never made a claim.
- Your insurance score dropped. Your insurance score is a lot like your credit score. It’s a number that gives insurance companies a snapshot of how much risk they’ll take on by insuring your property. Insurance companies may use your credit score, claims history and information about your home to determine your insurance score. If your score has recently decreased, your insurance company may raise your home insurance rates.
- People in your area recently file numerous claims. Your home insurance rates may increase if a string of burglaries or severe storms causes damage to other homes in your area and the owners file claims with their insurers.
- You add a feature to your home that the insurance company considers dangerous. If you recently installed a pool, trampoline or swing set, your insurance company may increase your rates slightly to offset the increased statistical likelihood that someone will be injured on your property.
There isn’t a single reason causing your home insurance premiums to increase in many cases. While you may not be able to control the factors that contribute to your higher rates, there are a few things you can do to help you earn discounts on your home insurance.
What to Do if Your Home Insurance Rates Go Up
If your home insurance rates increase, contact your agent to discuss your options. You may be able to get discounts by combining your home and auto policies, adding protective devices like burglar and fire alarms or modernizing your home’s plumbing and electrical systems.
Choosing a higher deductible can help offset rate increases, as well. You don’t have to pay the deductible unless you file a claim, but it’s a good idea to have the money set aside just in case.
How to Get Lower Insurance Rates
Your agent can help you evaluate your current home insurance coverage and decide whether it’s time to shop for a different insurance company. Depending on the reason for your rate increase, you may be able to pay lower premiums without sacrificing coverage.
Contact the agents at Ed Weeren Insurance Agency today to discuss your home insurance, review your coverage and make sure that you get the lowest possible rates.
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