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Why home insurance rates are going up

home insurance rates are going up

Prices for most things have increased over the last few years. In general, inflation, supply chain issues and labor shortages have driven prices up. Home insurance rates are no exception!

In an article for Shaw Local, a senior director of home insurance for LexisNexis Solutions said home insurance rates in Illinois have increased by 30% since 2015. That’s higher than the national average of 21% but much lower than in states like Florida and California. So, what’s causing home owner’s insurance rates to climb?

Reasons Why Home Insurance Rates are Increasing

As we mentioned in our recent post on auto insurance rates, there are lots of reasons why insurance premiums increase. When the number and cost of claims goes up, insurance companies have to raise their rates to compensate.

Some of the reasons home insurance rates are increasing include:

home insurance rates and weather

Extreme Weather Events

Severe weather incidents have become frequent, destructive and costly. Weather events like tornadoes, hurricanes, floods, droughts and wildfires are on the rise. The NCEI reports that, as of September 11, we have seen 23 confirmed U.S. weather disasters in 2023 with losses exceeding $1 billion each. When weather-related damages go up, insurance costs go up as well.

home insurance and rising materials cost

Rising Materials Cost 

Another key factor in the price of homeowners insurance is the cost of repairing or rebuilding a home. Building supplies still have limited availability and supply-chain issues continue. Insurance companies’ cost to fix or replace a damaged home have a direct impact on the cost of coverage nationwide.

skilled labor cost impact on home insurance rates

Home Insurance Rates and Labor Challenges

The construction industry is facing a skilled labor shortage. According to the Bureau of Labor Statistics, the construction industry had 423,000 job openings in September of 2022. That’s more than twice the projected number. This lack of available skilled labor contributes to supply chain issues. Competition for existing workers results in higher wages leading to higher cost. Higher cost to repair or replace homes means insurance rates must increase to cover the difference.

What You Can Do to Keep Your Home Insurance Rates Down

Here are a few things you can do to minimize any increase in your home insurance rates.
call an independent insurance agent

Call an independent insurance agent, like us.

Independent insurance agencies like Railside Citrus work with several insurance companies. Because of that, independent agents are able to research ways to keep your insurance premium to a minimum.

home insurance rates improve with security systems

Install protective devices.

Protective devices and smart technology like doorbell cameras and security systems can reduce your premiums. The insurance companies know these devices reduce the chance of crime, so they keep your premiums lower.

review your home insurance rates coverage

Review your coverage.

Make sure you have accounted for all improvements you have made to your home. Cancel or reduce coverage you no longer need. Increase your deductible if it makes sense in your situation. Higher deductibles usually mean lower rates.

Bundle your policies.

When you purchase more than one type of insurance from the same provider, you can usually save on the premiums for all policies. 

How Railside Citrus Can Help with Your Home Insurance Rates

As a boutique agency, we thoughtfully work on your behalf, saving you time. Give us a call at 630-377-0700 to find out how you can take advantage of all the tips mentioned in our post. We don’t charge for the assistance! Plus, we are locally owned and invest back into our community.

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