I Didn’t File a Claim but My Home Insurance Went Up. Why?

A number of factors contribute to determining your insurance premium. It is possible for your home insurance to go up even if you didn’t file a claim. Here are some reasons.

Home changes. If you have upgraded or renovated your home, it is worth more, so in the event of a disaster, more insurance is needed to cover it. Other additions, such as a pool, can increase risk, which will increase your premium.

Area changes. If there are changes in your area when it comes to natural disasters, claims and the cost of living, this can impact your coverage costs. An increase in the rate of thefts, vandalism, natural disasters and claims related to these means there will be an increase in your premium.

Safety changes. Your insurance is affected by changes in safety. If risk is lowered or safety is increased (say, for example, by the addition of a fire station in your area), your insurance rates are lowered. If risk is raised, your insurance rate is raised. You can lower your risk and your rate by making your home safer with burglar alarms and other safety measures.

Not making changes. Your home ages, and if you don’t keep it updated, this can mean a hike in your premium. Homes that are not updated become more and more dangerous to insure, which translates to them costing more to insure. Ignoring necessary upgrades raises your risk and raises your premiums.

We are always here to help you understand what goes into determining your home insurance rate. Call or email us today with your questions, and let’s take a look at how you may be able to lower your premium.