Why Did My Homeowners Insurance Go Up? | Travelers Insurance (2024)

FAQs

Why did my homeowners policy go up so much? ›

That's because your home and belongings will now cost more to replace. The insurance industry references the Consumer Price Index to measure inflation and adjusts rates accordingly. It's one reason property owners find that their home insurance keeps going up every year, even if nothing's changed on their property.

The primary reasons for rising home insurance rates include increases in significant natural disasters and the cost of building materials. Multiple insurers have stopped selling homeowners insurance policies in high-risk states, such as Florida, which also contributes to higher costs.

Travelers is the most expensive homeowners insurance company for $200,000, $350,000, $500,000 and $750,000 dwelling coverage amounts. Rates vary significantly among companies because they each have their own formulas for pricing.

"When inflation is on the rise, it basically means that the cost of everything is going up," Fairweather told CBS News. "And that includes the cost of maintenance for homes, the cost of remodeling homes. And that goes into the equation for home insurance."

USAA and Auto-Owners are the cheapest home insurance companies on average, according to Bankrate's research.

The average home insurance cost by state varies with the nationwide average coming in at $2,601 a year. The cheapest state for home insurance is Hawaii at $613 a year, and the most expensive state is Oklahoma at $5,858 a year.

Is it normal for car insurance to increase every year? It's not uncommon for your rates to go up annually, even if you haven't filed a claim.

Choosing a policy with a higher deductible can lower your premium. But remember that a higher deductible means you might have to pay more out-of-pocket if you have a claim.

Does credit score affect home insurance? ›

In most states, your credit history and credit-based insurance scores can impact whether you're offered a homeowners insurance policy and how much you'll pay in premiums. An insurance company might not be allowed to deny your application or renewal based solely on your credit.

The cost of homeowners and tenants insurance depends on a number of factors including: location, age and type of building. use of building (residence and/or commercial) proximity of fire protection services.

Increasing construction costs and labor shortages play a role, too. “To help pay for these higher costs, insurers have increased policy premiums on homeowners in both high- and low-risk areas,” says Pat Howard, a home insurance expert at Policygenius.

Although most homeowners insurance companies offer comparable coverage to seniors, we found that Allstate offers the most generous discount to retired homeowners over 55 of up to 20% off the cost of a policy.

In our detailed analysis of 35 reputable nationwide providers, our team selected State Farm as the best homeowners insurance company. We also ranked Nationwide for its outstanding natural disaster coverage and USAA for its strong industry standing and affordable cost.

If you notice your car insurance keeps going up each time you renew, it could be from rising car insurance rate trends over time. These are often caused by factors outside your control, like increases in the costs to repair and replace vehicles or increases in claims and claim severity in your area.

While auto insurance premiums are individualized, overall changes in the insurance industry can impact all policyholders. Your rate may have increased due to changes in your driving record or driving profile, such as receiving a speeding ticket or an increase in your annual mileage.