Understanding why your home insurance policy may a higher renewal rate.
As a homeowner, you hope to never use your homeowners insurance policy. Of course, you have it there just in case, but never do you want a disaster to occur to or in your property. Around renewal time is a great opportunity to review your coverage and ensure you have the right amount. During this time, you may notice that your rate has gone up even if you have not added any more coverage. Here are a few reasons why that could be the case.
You’ve made updates to the home. Everything from minor updates to significant renovations can alter the value of the home. Making updates to the property can increase the value, requiring you to purchase more coverage than you had before.
You filed a claim. If you’ve recently made a home insurance claim and your premium increased, it may be because your insurer now views you as a high-risk policyholder and offsets that risk with a higher premium. Typically, insurers reward customers with lower premiums when they have remained claims-free for a set period of time.
Trends in your area show you have a higher risk of burglary or other incidents now. Insurers use advanced analytics to understand the risk of you filing a claim. If there’s an increased threat of vandalism, theft, or natural disaster in your area, you could see higher home insurance premiums.