Why Does Home Insurance Increase Every Year?

  1. 37376 POINTS
    David G. Pipes, CLU®, RICP®
    Business Development Officer, T.D. McNeil Insurance Services, Fresno, California
    Most homeowner’s policies include a provision that increases the coverage annually to compensate for the increased cost of construction. This annual increase usually results in a 1-3% increase in premium. The company may have gone to the insurance commissioner and been granted a rate increase which will affect various parts of the policy differently but can result in an increase as well. Otherwise increases are due to changes of conditions or losses incurred on the property itself.
    Answered on September 24, 2014
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