If you are a homeowner in Pennsylvania, you are probably wondering why your insurance cost is increasing. It is usual for the cost of home insurance to be reviewed annually.
Factors That Impact Your Home’s Insurance
There are a lot of factors that can lead to your home insurance increasing. Just like gas prices, many of these are out of your control. Below are a few contributing factors to an increase in homeowners insurance
1. Inflation Leads To An Increase In Homeowners Insurance
This one is common sense to many homeowners. When the value of the dollar decreases, more is needed for insurance. Due to recent economic changes, stimulus checks, and stock market fluctuations, the dollar’s value has decreased recently. This helps contribute to small increases in your home insurance.
2. Material Replacement Value & Construction Costs Impact Home Insurance
Another factor that is directly connected to the market is replacement costs. This takes into consideration building material as well as construction costs. Presently construction work costs more than it used to as there is a large need for construction work.
Additionally, building materials such as lumber, metals, and stone or brick have increased or fluctuated drastically in cost over the past few years. As the cost of lumber increases, the cost of replacing your home increases. In order for insurance to cover your home, it must cover it for the correct amount of cost.
3. The Age Of Your Home Can Increase Home Insurance
Your home is not getting any younger. As your home gets older, it can cause your home insurance rate to increase. This is because repairs and replacements become more costly and more likely.
4. Increase In Weather & Disaster Related Claims Effect Home Insurance
More and more weather-related claims have been impacting homes and home insurance. As land near you becomes more populated, water becomes more and more displaced. The water displacement raises the flood zones and can impact your home by it eventually being in a flood zone. Weather and flooding can impact your home insurance and flood insurance.
5. Filing A Claim For Your Home
When you file a claim for your home, it shows that your home is susceptible to specific weaknesses. If you file a claim that indicates you are more likely to file another home insurance claim. Depending on your claim, your home insurance might increase.
6. Purchasing A Pool Or Trampoline Will Increase Your Home Insurance
A pool or trampoline drastically increases the cost of your home insurance because it drastically increases the risk of injury that can happen at your home.
Important Takeaways On Homeowners Insurance:
- Homeowners’ insurance is increasing throughout the United States due to inflation and replacement costs.
- You can see a greater increase in your home insurance based on the weather patterns near your home.
- Find out how much your homeowners’ insurance will increase when you purchase a pool or trampoline.
- Let your insurance agent know when you do updates to your home that will help lower your structure’s perceived age.
What You Can Do To Lower Your Home Insurance
You can do a few things to lower your homeowner’s insurance. The first and most important way to reduce the cost of home insurance is by contacting us for a free insurance quote. Then, we can work with you and your home to get you some of the best rates on the market. Additionally, ask one of our personal insurance agents for ways to lower your home insurance cost. They will know the best ways for you to save on your homeowner’s insurance.