A homeowner’s insurance policy is a necessary evil that all homeowners are expected to have. If you are ever the victim of a large disaster, you will be thankful that you have the coverage, so you don’t wind up with an astronomical bill. Every year, you will have to renew your homeowner’s insurance policy. If you have noticed that the cost has increased at the time of renewal, it may leave you scratching your head as to why this happened. InsureWise LLC is here to talk about some of the reasons you may see an increase in your policy price.
Insurance Cost Increases You Can Control
At the time of renewal, your insurance company is going to look at several factors as they come up with the cost. Following are some of the reasons you could see an increase as a result of determinants within your control.
– Renovations: As you make improvements to your home, you could see the cost of your homeowner’s insurance policy increase. You may need more coverage if you have finished a basement or have decided to convert part of your home into an additional bathroom for the house.
– Claim History: Depending on the insurance company you are working with; they may provide a coverage at a lower cost when you go a certain period of time without making a claim. If you had to make a claim in the last year, you will have to start that time frame over again and could see an increase in the price of your policy. If you have made several claims recently, your insurance company may decide it’s time to increase the price of your policy to counterbalance the money they have had to give you in claims as well.
What Else Causes Your Insurance Cost to Increase?
Sometimes, you may notice that the price of your policy goes up and neither of the issues above apply to you. That’s because as an industry, there are several factors that come into play as they set the prices for their policies. Following are the situations that are out of your control.
– Extreme Weather: Severe weather events like hurricanes, tornadoes, flooding, wildfires and more are happening more and more. Insurance companies have to raise the price of their policies to ensure their customers are taken care of in these events.
– Higher Risk of Burglary: Depending on where you live, you may see that there is a rise in cost due to the higher risk of certain incidents like burglary. There are several analytics that help insurance companies come up with this risk.
– Home Prices: The cost of housing has increased across the entire country as of late. This can have an impact on what you pay in insurance as well.
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If you are looking for the best homeowner’s insurance rates and don’t know how to find them, you can rely on InsureWise LLC to help you get the best deal out there. Call us today or click here to fill out an easy online quote.