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Did Your Home Insurance Premium Increase at Renewal Time? Here’s Why

  • January 9, 2020

Reasons Why Your Home Insurance Rate May Have Increased

 

The new year is a great time to review your insurance coverage and make sure you’re ready for the year ahead. If it’s your renewal time, you may have noticed that your homeowners insurance in Thousand Oaks, CA has increased slightly. Before you panic, there could be a good explanation for this. Check out why your premium may have increased.

 

  • You may home renovations

Did you recently install a new bathroom or revamp the kitchen? Even minor upgrades to your property can impact the value of it. If the value of your home increases, it calls for more coverage than you had before. In turn, you end up paying more for home insurance.

 

  • Your claims history has changed

If you’ve recently made a home insurance claim and your premium has increased, it could be because it’s the first time you’ve filed a claim in a while. Since insurers often reward policyholders for a claim-free history, filing a claim can increase your rates. If you’ve made several claims recently, you may have a surcharge added to your premium to offset the cost of processing multiple claims.

 

  • Analytics show you have a higher risk

Insurers use intelligent analytics to understand how much risk is associated with a homeowner. If there has been an increase in the number of burglaries, thefts, and natural disasters, then you pose a higher risk of filing a claim. As a result, your insurer will raise your premiums.

 

There are still many ways you can lower the cost of your homeowners insurance. At Falsken & Associates Insurance Agency, we help homeowners find the insurance coverage that suits their budget and needs. Contact us today to get started on your tailored policy.