Why Are My Homeowners Insurance Premiums Increasing?

  1. 14231 POINTS
    Tom Sheehan
    Agency Owner, The Thomas G Sheehan Agency, 27 Glen Road Sandy Hook, CT 06482
    There could be any number of reasons behind a Homeowners' premium increase so always check with your Insurance Professional about your particular policy terms and conditions.  One reason may be due to the "inflation guard" provision that may be included in your policy.  This increases the dwelling amount on your home each year, usually by about 4% which therefore results in a corresponding premium increase.  Another reason may be the general loss history in your area.  Here in CT we had a few very bad winter and fall storms over the course of a three year period that resulted in a large increase in necessary Homeowners' claims with all companies providing such coverage. As a result, insurance premiums increased to reflect that loss history.
    Answered on July 31, 2014
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  2. 37376 POINTS
    David G. Pipes, CLU®, RICP®
    Business Development Officer, T.D. McNeil Insurance Services, Fresno, California
    Generally the inflation guard provision in your homeowner’s policy is automatically increasing coverage every year to keep pace with the increases in building repairs.  Your house is also getting older and that affects rates.  The company can change rates based upon their experience.  There can be a loss which results in a surcharge or the loss could result in your losing a discount you have enjoyed for being claims free.
    Answered on July 31, 2014
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