Why might my premium go up at renewal?

August 23 2024 7:49pm • Est. Read Time: 2 MIN

Whether or not your premium increases at renewal really depends on your location and any changes that happen to your home during your policy period.


There are many factors that could impact your premium at renewal. Some you can control; others you can’t.


These are the top 11 reasons home insurance rates might increase:


  1. Inflation

    1. Your insurance rates may increase if your limits were adjusted to account for inflation and the cost of rebuilding your home. The more it costs to rebuild your home, the more your insurance will be.

  2. You Lost Discounts

    1. Read through your renewed homeowners policy and look for any discounts that might not have been applied. If this is an error, it’s easy enough to correct – just contact us to see if there are any additional documents you can provide to add on a discount.

  3. You Added a Trampoline or Swimming Pool

    1. In the industry, we lovingly call these “attractive nuisances” – the items in your yard that may attract visitors and cause injuries. Think: swing sets, tree houses, trampolines, swimming pools, and slides. They may even invite trespassers, and unfortunately, you can be held responsible for injuries even your uninvited guest's experience.

  4. You Made Some Big Home Improvements

    1. Home improvements increase the value of your home, and they also increase how much it would cost to rebuild your home.

  5. You Have Outdated Electrical, Plumbing, and/or HVAC Systems

    1. If you have an older home, outdated systems can make it more expensive to insure (or hard to insure altogether). Investing in electrical, HVAC, or plumbing upgrades can not only make your home safer, but they may make your homeowners insurance more affordable in the long run.

  6. Your Roof Is Getting Old

    1. Your roof protects everything under it. As it gets older, it doesn’t do that job as well. An older roof is more likely to have leaks and experience wind and hurricane damage.

  7. Your Credit Score Dropped

    1. Many states (like Florida) allow insurers to use your credit score to help determine your rates. The better your credit is, the lower your premiums will be. If your credit rating drops, your insurance premium may go up.

  8. You Filed a Claim

    1. Your claims history is the first place to look if your insurance prices go up. Even a small claim can cause significant increases and stay on your record for years. Generally, non-catastrophic claims increase your rates more than claims filed because of natural disasters.

  9. Your Insurer Covers Too Many Homes in Your Area

    1. If an insurance company already insures too many homes in your area, it may increase rates to decrease its concentration. Again, spreading out risk helps make sure the company can meet its claims obligations if a widespread disaster strikes and keep prices affordable for homeowners.

  10. Your Company Paid Out a Lot of Claims

    1. Insurance uses the law of large numbers to spread risk over many homes and keep the costs down. But when a carrier experiences a year with higher-than-expected claims, it has to adjust premiums to cover losses and operating costs.

  11. You Adopted a Dog

    1. All dogs are good dogs, but some are restricted breeds depending on local and state laws.


We're always happy to review your rates with you – just Submit a Request below!

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