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Gary HallProfessional · Tutor for 6 years
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Homeowners' insurance continues to increase annually while renters' insurance does not because homeowners' insurance often covers more risk factors such as natural disasters, structure of the property, and homeowner’s liability.
Explanation
Homeowners' insurance may continue to increase annually while renters' insurance remains constant because homeowners' insurance typically covers more risk factors. Homeowners' insurance not only covers the contents of a house (similar to renters' insurance) but also covers the structure and liability. This can include natural disasters or structural injury lawsuits, both of which can be costly and are associated with higher risks. Furthermore, there is a potential connection between rising property values and insurance rates; the higher the value of the home, the higher amount that is needed for coverage.
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Question:
Create a hypothesis for why homeowiners insurance continues to increase annually while renters insurance does not.
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