Homeowner insurance premiums do not necessarily increase every year but they often do, for some of the following reasons.
Check to see if your homeowner insurance carrier was granted a rate increase in your State. That would certainly be a reason.
Absent a rate increase or increased hazards with regard to your property (new swimming pool, dangerous pets, etc.), it is possible that your homeowner insurance carrier utilizes an automatic inflation guard feature, to account for increased construction costs in your area, including labor, materials, adherence to local building regulations, etc.
Check with your agent to review your policy. You may want to increase your deductible. You may also want to have the agent obtain rates for you from other carriers in your area. Try to get the strongest rated carriers, if pricing is competitive and coverages are what you want.
Business Development Officer, T.D. McNeil Insurance Services, Fresno, California
If your policy is increasing rapidly, you should visit your insurance agent and determine what is happening. Often the automatic increases mandated when a policy has guaranteed replacement cost as the adjustment basis, accelerate too quickly. It only takes a few minutes to run an estimate to rebuild your home and armed with that information insurance companies will usually reduce coverage to the appropriate level with reductions in premium as well.
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Check to see if your homeowner insurance carrier was granted a rate increase in your State. That would certainly be a reason.
Absent a rate increase or increased hazards with regard to your property (new swimming pool, dangerous pets, etc.), it is possible that your homeowner insurance carrier utilizes an automatic inflation guard feature, to account for increased construction costs in your area, including labor, materials, adherence to local building regulations, etc.
Check with your agent to review your policy. You may want to increase your deductible. You may also want to have the agent obtain rates for you from other carriers in your area. Try to get the strongest rated carriers, if pricing is competitive and coverages are what you want.