Why Does Your Homeowners’ Insurance Go Up Every Year?
Homeowners everywhere are mystified year after year as they continue to be a loyal customer to their insurance company, only to be rewarded for their loyalty by an insurance premium that gets more and more expensive. You haven’t made any claims and you’ve only increased your history with the company, so shouldn’t your costs be going down? Well it turns out there are several things that could be influencing this price increase that you might be unaware of. Here are a few of them.
As your home grows older, it wears out. Homes that have been around for 50 years will have far more potential issues than a home that’s five years old. Take your roof, for example. A roof that’s 25 years old will likely have far more problems in the form of leaks, gaps, and wood rot than a roof that’s just five years old and has most of its materials still under warranty. Roofs are one of the largest causes of homeowners’ insurance claims, so to compensate for this increased risk of a claim on your policy, your policy will get more expensive.
You didn’t move, so why should this matter? While your home may have stayed put, what’s happening around it almost certainly didn’t. Did your region become particularly prone to severe flood damage over the last year? Has heavy rains in the area made your land more prone to sinkholes? If so, your homeowners’ insurance costs will increase.
Everyone loves when their home increases in value because that means greater profit when they eventually sell it. However, this can have some repercussions in your wallet, especially when your homeowners’ insurance bill shows up. Your insurance cost is based upon how much it would cost your insurance company to replace your home and its insured contents entirely should it be completely and irreparably destroyed. If your home’s value goes up, this cost may also rise, increasing your premiums.
You have the right to hold your insurance company accountable for the policy they sell you in the event of a disaster or serious loss in your home. Call a Miami insurance attorney from The Morgan Law Group, P.A. today at (844) 818-0774 to request a case evaluation.