Does Homeowners Insurance Go Up Every Year?

Homeowners insurance offers property owners security and peace of mind. The right insurance for your home can help you financially recover if your home sustains damage in an accident or natural disaster. However, many homeowners are surprised when the price of their premiums increases.

Sometimes the change is barely noticeable. Other times, a higher premium can be a significant financial burden. That’s why it’s vital to understand the reasons behind homeowners insurance rate changes and how you can combat them.

How Often Do Homeowners Insurance Rates Change?

Many factors can impact homeowners insurance rates. Many people don’t realize that homeowners insurance rates relate closely to the stock market, bond market, and global economy as a whole. As such, it’s not uncommon for homeowners’ insurance rates to fluctuate weekly or even daily.

However, most homeowners only notice an annual change. For example, the average homeowner’s insurance cost in the United States in 2022 is $1,393 per year for a policy covering a home worth $250,000 – a 6% increase from 2021 when the average cost was closer to $1,312. 

Yearly changes are when insurance rates usually increase the most, for reasons ranging from inflation to a claim causing your premium to go up.

What Affects Homeowners Insurance Rates?

Home insurance rates increase each year for a variety of reasons. Some reasons are within the homeowner’s control. Other reasons, however, are outside their control. Common reasons include:

  • Changes to your property: When you make changes to your home, such as major renovations, you often increase the value of your property. This increase in property value can attribute to your premiums rising. In addition to renovations, adding something like a swimming pool or trampoline – sometimes called “attractive nuisances” – can also raise your premiums.
  • Conditions in your area: Certain local conditions can cause your premiums to go up. Regions that consistently see severe weather can cause higher premiums, increasing the cost of construction required to repair or rebuild homes. Frequent burglary or theft can also be a factor.
  • Inflation causing insurance to raise rates: Inflation causes insurance companies to raise their rates. With inflation, your home insurance will cost more than it did last year. With the increased cost of home equipment and appliances, insurance companies respond accordingly.
  • Claims: Filing a claim can also increase your rates. Although filing a claim is sometimes necessary to offset major financial burdens, the drawback is that your rates may increase.

Who Has the Best Homeowners Insurance Rates?

Having an insurance policy that can comprehensively cover your home is crucial. However, you also want to work with a team with the best homeowners insurance rates. At Gator Insurance Service, we’re proud to offer highly affordable and comprehensive homeowners insurance rates.

We believe in putting our clients first and work with over 30 policy carriers to help you find the right coverage for you, your home, and your budget.

Contact Gator Insurance Service today at (727) 544-0064 for a quote on home insurance!