No one wants to pay too much for their home insurance. Your goal is to get the strongest coverage at the most affordable price. However, over time, you might see your home insurance rates increase.
Most people think that insurance claims drive up the cost of policies. While this is often true, there are many other factors that can influence policy prices. Even if you don’t file a claim, you might see your insurance prices increase each year.
Consider some non-claim factors that might increase car insurance rates.
- You Fail to Pay Your Premiums
Failing to pay for your policy can demonstrate to your insurance provider that you are a high-risk homeowner. Sometimes, insurance companies might even cancel your policy after one missed payment. If you do miss payments, you can reasonably expect to see your rates increase. Therefore, always make your policy payments on time.
- Your Local Area Has a Lot of Claims
Insurers determine rates based on risks. A home’s location can determine the level of risk it faces. If your area has a lot of insurance risks, such as frequent bad weather or high theft ratios, you might expect to pay more for your insurance. Insurance companies periodically review the risk classifications of a local area. They might change rates as risks increase or decrease.
- Your Neighborhood Changes
Let’s suppose that your local fire station moves to a new location a couple of miles further from your home than before. If you live close to a fire station, it means the emergency services can get to you quickly in a hurry. Some insurers offer discounts for proximity to emergency services. Therefore, if you live further from certain services, you might pay more for insurance.
- Your Home’s Value Changes
More expensive homes means insurance companies assume more of a cost burden by insuring you. If you make modifications to your home, this may increase its value. Therefore, you might need more insurance coverage to fully protect the home. You might see slight rate increases when you increase your coverage.
- You Add Liabilities to the Home
Whenever you occupy a home, you bring a certain level of risk on your own. Your belongings, and even your family members might cause insurance risks to the home. Let’s say you decide to get a new pet. A pet is a liability risk. It could bite another person or cause property damage. You might have to pay more for insurance with a new pet.
Nonetheless, there are ways to save on home insurance. One way is to install safety devices that decrease risks. Another way is to talk to your insurance company about good policyholder discounts. You might even consider increasing your policy deductible if it decreases your rates.