Why does home owners insurance go up?

Home insurance can go up for a variety of different reasons. Rate increases are very common in the home insurance industry. The most common reason for rate increases is because a higher amount of claims payouts were made in your area. Because insurance is a pot everyone contributes to to pay for everyone's losses, policyholders will be responsible for paying higher premiums.

Another reason policies increase in price is because companies will automatically inflate your dwelling coverage to keep up with inflation for supplies and labor. When your dwelling coverage goes up, your rates go up. If you have filed a claim, you will also notice increased rates for up to three years, no matter how much the claim was for.