Home insurance is not only an essential tool for protecting the investment in your house but a way to secure your peace of mind. However, insurance premiums can change over time and sometimes more quickly than expected. Understanding the factors affecting these costs can help clarify why you may see them rise. Below is a discussion on reasons why your home insurance premiums are rising and what you can do.
What Affects Your Insurance Prices?
Home insurance prices can be affected by a multitude of factors. One main factor is the cost of raw building materials and labor for repairs or new home construction, as the market value of these procedures changes based on supply and demand. Shortages in building materials, for example, can make costs shoot up. Insurance companies must account for these added costs due to the changing market.
Environmental disasters can also increase your insurance premiums. If your location experiences increased flooding, storms, or wildfires, premiums will likely rise. When calculating costs, insurance companies factor in the increased risks these disasters present. Likewise, if you have an old home, premiums may increase because of the likelihood of its major systems failing.
What Can You Do?
While you can't change factors such as extreme weather or the cost of building materials, there are ways to combat increasing premiums. For starters, contact your home insurance company to see if there are opportunities to decrease costs, such as on-time payment discounts. You also might be able to get a deal by bundling multiple types of insurance together under one plan. If you have to file a claim, make sure your cost and coverage match your needs by keeping your insurance company informed. For example, remodeling your home can affect your premium, and your coverage may need to be adjusted.
If you're looking to protect your home, contact 1st Insurance Group in Tempe, AZ. This insurance agency provides affordable coverage, reliable service, and multiple insurance policies. The agents here are committed to helping you find the best policy to suit your needs. Call (480) 883-9977 to get a fast and free quote or visit the website for more information about their services.