If you’re one of the 90% of homeowners who renewed their policy last year just to find out your rates increased by more than $100, you’re probably wondering how this happened. [5] Here are a few of the most common reasons your homeowners insurance rates went up.
1. Continued inflation going into 2023
In some cases, your insurer will increase your rates because of something within your control — like if your roof needs to be replaced or you filed a claim recently. But the fact of the matter is home insurance premiums are going up everywhere due to the increased cost of labor and construction materials thanks to supply chain issues and record-high inflation that started in 2020.
Your rates are based heavily on how much dwelling coverage is in your policy — this is the part of your home insurance that pays to rebuild your home if it’s damaged or destroyed. Higher rebuild costs due to inflation means homes are requiring higher dwelling coverage limits to keep up with the rising prices.
This has led to higher home insurance rates across the board, though there may be some hope on the horizon.
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