Several things can affect home insurance rates.
We understand how frustrating it can be when your homeowners insurance premium increases. Some things that raise the cost might be expected, like if you renovate your kitchen or change your coverage. But some things are out of your control, like repair costs.
We never raise rates to make up for past claims. But we do look at several factors before increasing future rates. What's the likelihood you'll have a claim, and how much would it cost to pay for it? What's the frequency, severity and likelihood of future claims where you live? Are economic events causing prices to rise because labor and supplies are limited? Then we use all that data to adjust our rates.
A rate change at renewal
When projected claims costs go up, we raise our rates to make sure we can cover you after a covered loss. These costs include:
- Materials and labor
- Weather-related events in your area
Who does it affect?
Our rate is spread across policyholders in your area. We also look at your policy. Members can have higher premiums if they file claims, so everyone pays their fair share of the risk.
Auto rates can go up for similar reasons.
Rising costs are also pushing up car insurance premiums for many drivers.
