Why Do Home Insurance Rates Fluctuate?
14231 POINTSview profileTom SheehanAgency Owner, The Thomas G Sheehan Agency, 27 Glen Road Sandy Hook, CT 06482Home Insurance premiums can fluctuate for many reasons. The most important thing to keep in mind is that premium reflects risk. So, for example, most policies include some form of an "inflation guard" which usually increases the amount of coverage on the home each year. Most policies that I have seen have increased by roughly 4% each year. Thus, as the coverage increases, the premium will too. Premium will also reflect loss history either of that particular property or the state in general. A bad winter in CT for example will more than likely be followed by some rate adjustment.Answered on July 8, 2014flag this answer
37376 POINTSview profileDavid G. Pipes, CLU®, RICP®Business Development Officer, T.D. McNeil Insurance Services, Fresno, CaliforniaThe underlying rates for homeowner’s policies in California have been relatively stable. The premium increases each year because the house is a year older and the cost to rebuild the house generally increases every year. There are other factors at play and you might be subject to some unusual pressures but generally speaking the underlying rates remain fairly steady.Answered on July 8, 2014flag this answer
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