American Eagle Insurance Blog
An increase in home insurance premiums is not an impossible thing to happen. It can happen at every renewal of service, same with internet services and other renewal purchases.
There are a lot of factors that could contribute to home insurance premium increase. Let's dive into it one by one and learn the best practices to avoid the price hike.
Why Does Home Insurance Premium Increase
Yearly, insurance policyholders will have to renew their contract with their insurance company to continue their service. As an insurance carrier, you might not have considered the renewal premium's possibility to increase. Here are some of the reasons why home insurance premiums go up:
Increased Costs of Labor and Materials
There is a financial impact when rebuilding or repairing a home. In case of a natural disaster in a community, labor and material price might increase due to demand.
Insurance is there to help you protect future expenses. But 546if you file a claim, your insurance rate may increase. If you make a small claim, think twice and shell out money for it.
Changes at Home
When you change something in your property that increases your value, your insurance rate will increase. Let's say you redo your kitchen- it will be costlier to replace new items in your kitchen. If you have a trampoline, insurance companies may consider these as a factor as well. The risk it brings could make the policyholders liable.
Tips to Prevent the Hiking Rates
Nobody wants to pay higher for something that was bought at a lower price. Prevention is always the better route to avoid an increase in insurance rates. Here are the tips to prevent insurance spiking rates:
Home insurance price hike is inevitable due to many factors. However, you can control things within your home to protect your home and avoid premium spikes.
At American Eagle Insurance, we do our best in making sure that our clients are well-protected with affordable and comprehensive policies. We make sure to go the extra mile to help you with your needs. To learn more about how we can help you, please contact our agency at (225) 667-7377 or Click Here to request a free quote.