My Home Insurance Renewal Went Up .... Again!

Why does this happen every year?

My Home Insurance Renewal Went Up…Again. Why?

If you’ve opened your latest home insurance renewal and felt your jaw drop a little, you’re not alone. Across the country, homeowners are seeing premiums climb year after year. That can feel frustrating when nothing about your home has changed.

So what is really going on?

The Cost to Rebuild your Home has Increased

Insurance isn’t based on your home’s market value - what you want to increase every year. It is based on the cost to rebuild it and that is what sucks to increase each year. Over the past few years, construction materials, labor, and supply chain costs have all gone up significantly. Along with everything else we need to live.

Even if your home looks exactly the same, it would cost more today to repair or rebuild it after a loss and the insurance companies adjust your policy to reflect that.

That is why you normally will see your Coverages increase (especially Coverage A or dwelling coverage) every year. This protects you from being underinsured, but it also includes gradual or sometimes severe increases in your premium.

More Sever Weather = More Claims

From hurricanes and hailstorms to flooding and wildfires, insurance companies are paying out more claims than ever before. Even if you haven’t had a claim, your rates can still increase because insurance spreads risk across all policyholders.

Simply put: when losses increase, premiums follow.

Insurance Companies Are Rebalancing Risk

Carriers regularly adjust pricing based on how risky a specific area has become. This includes things like:

• Local weather patterns

• Claim trends in your area

• Crime rates

• Fire protection availability

If your region has seen an uptick in claims or risk exposure, your premium may rise, even if you’ve done everything right.

The Good News: You’re Not Stuck with that Price

Here’s what most people don’t realize:

You have options.

Different insurance companies price risk differently. That means the company you’ve been with for years might no longer be the most competitive option for your situation.

Lower that Bill

The Sponsor of the The Coastal Current is Brightway Insurance, The Volnoff Agency.

They specialize in reviewing your current policy, identifying gaps or unnecessary costs, and shopping multiple top-rated carriers to find you the best value.

If your renewal just went up, don’t wait. Give them a call or click the link and see how much they can save you.