Why Your Home Insurance Rates Might Go Up

If you are currently enjoying low premiums for your home insurance coverage, you should be on the lookout for the factors that might trigger a rate hike. Some of the factors might be out of your control, while others are things you can influence. Below are some of these factors.


The average prices for goods and services change over time; a positive (increase) change is known as inflation. Inflation is the reason a thousand dollars today does not have the same purchasing power it did a decade ago. Therefore, if you keep renewing your home insurance over the years, it might go up bit by bit due to inflation.

Property Aging

Aging properties tend to attract higher insurance rates than new homes. This is because old homes are more susceptible to damage and are also riskier than new ones. For example, old plumbing pipes can break and flood your house with water and an old roof can is more likely to leak than a new one. Thus, if you have insured the same house for years, the rates will creep up as the house ages.

Dangerous Acquisitions

Adding dangerous things to your home can also increase your coverage rates. For example, the rates might go up if you acquire a guard dog because of the threat of dog attacks to your visitors. Your rates may also go up if you install a swimming pool due to the risk of drowning. Anything that increases the risk of injuries in your home can increase your home insurance risks.

Neighbor Actions

It is not just your actions, but also your neighbors' actions, that can increase your home coverage rates. Say your neighbors are filing lots of home insurance claims (such as damages or theft claims). Your home insurance company might assume that your zip code is risky and increase your rates in anticipation of more claims.

Carrier Losses

The home insurance industry does not always realize a profit. Individual carriers can make losses due to increased claims such as those caused by frequent weather disasters. This is unfortunate because home insurance companies want to remain in business and make a profit just like other businesses. The increase in rates is an inevitable response to the losses.

The above list is not exhaustive; there are other factors. Hopefully, you will be able to enjoy low premiums for the foreseeable future. Consult your homeowner's insurance agent for advice on insurance plans.