When it comes to home insurance rates, there are tons of things that need to be considered. Even if you’re a model customer who has made no claims, there are externals factors that influence the cost of your premium.
Here are some of the most common factors that may be causing an increase:
1. Modern homes and real estate prices
Rising housing prices and homes with high-end features like pools and hot tubs drive up replacement costs and liability claims.
2. Finished basements with entertainment
Nowadays, finished basements include high-end materials that cost a lot more to replace if there’s a sewer backup or other damage. It’s also more likely that these finished basements are home to expensive electronics and furniture, like flat screen tv’s, home office spaces, or entertainment rooms.
3. Eco-friendly features
While solar panels, energy efficient windows and doors, and high-efficiency appliances are eco-friendly, they are much more expensive to repair or replace, meaning they could increase your insurance premiums.
4. Dated municipal infrastructure
Outdated municipal infrastructure and a much higher demand for water has increased the amount of sewage backups, resulting in more damage related claims.
5. Your claims history has changed
If you need to make a claim, you may miss out on your claims-free status discount. Having to file multiple claims may lead to a surcharge on your premium.
6. Extreme weather is more common
Floods, forest fires, and hurricanes are all becoming much more frequent, leading to expensive damage and more claims. This leads to higher insurance costs.
7. Neighbourhoods change
As neighbourhoods grow, it alters the demographics and risk of where you live. For instance, if a new bar opens up down the road and leads to a higher potential of crime, the risk factor for your home will also increase. This makes it more costly to insure.
8. Emergency services, skilled trades, and belongings are all more expensive
Inflation causes the cost of emergency services and labour costs to increase – meaning paying for claims becomes more expensive. If you’re still wondering why your home insurance premium is increasing, don’t hesitate to reach out to us at Haas Insurance. Our dedicated team is waiting to help answer any questions you may have regarding your coverage and the costs.