Finding Great Insurance

Homeowners insurance policies are an important part of protecting your home, but the premiums can change often. Insurance companies may adjust premiums based on the age and condition of your home, your location, and other factors.

Knowing when and why your insurer may decide to adjust your premiums is important. Read on to learn more about the most common reasons for a premium adjustment.

Improvements or Renovation Projects

After you've made any improvements or renovations, it's important that you contact your homeowners insurance provider to discuss the changes and determine if there will be any impact on your premiums.

Some improvements, such as adding a pool, deck, or patio, can increase the value of your home and, therefore, increase the cost of insuring it. These improvements may also increase your risk of liability, which can add to your premium.

For example, if you have a pool on your property, there is a likelihood that a guest or visitor may be injured, which could result in an expensive lawsuit. The same is also true for improvements such as trampolines that could potentially increase the risk of injury.

Recent Natural Disasters in The Area

When natural disasters occur in an area where many people have homes insured by the same company, insurers often respond by raising prices across the board to offset potential losses due to claims being filed after the disaster has occurred.

That said, it's important for homeowners who live in areas prone to natural disasters (like earthquakes or floods) to look into additional coverage options, such as earthquake or flood insurance policies ahead of time. This way, they're better protected from any potential rate increases in their homeowners insurance policy due to these events occurring nearby.

In addition, if your area has experienced a natural disaster, it's important to contact your insurance provider immediately to discuss any potential changes in your premiums. This way, you won't be surprised when renewing or purchasing a new policy.

Inflation

Inflation can also cause rates to increase. As prices for labor, supplies, and materials go up, so too do the costs associated with replacing or repairing a home if something were to happen. Because of this, insurers may raise their premiums in response to the rising costs.

In some cases, insurers may also have to adjust their premiums if new laws or regulations are put in place regarding the types of coverage they offer.

For example, if a new law requires insurers to provide additional coverage for certain types of damage, premiums may go up to cover the cost. It's important to be aware of any potential changes in the terms and conditions of your homeowners insurance policy.

Contacting your insurer regularly can help you stay informed about any potential adjustments that may apply to you. For more information on homeowners insurance, contact a professional near you.