My Homeowners Insurance Increased From The Previous Year, Why?

Homeowners insurance is paid on an annual basis and you may know it is usually through an escrow account. Your loan provider uses an escrow account to combine your homeowners insurance premium into your monthly mortgage payment. 

Your insurance increase depends on several factors that vary by person and property. This may be due to changes to your credit score or just inflation.

Filing one claim does not increase your insurance premium but filing multiple claims within a three-year period increases your premium because you are perceived to be a higher risk.

Each insurance company is different and they apply their own criteria for increasing your premium. Minimizing the amount of claims you file on your insurance can be helpful in keeping your insurance premium from increasing. 

The cost of your insurance goes up with inflation. Insurance companies increase the amount of money customers pay to keep up with their rising costs. When the Consumer Price Index rises, insurance companies raise the premiums in par with the index. 

Certain insurance companies give discounts to long-time customers. Also, the homeowner who bundles his insurance — car and home — may get an additional discount.

MyMoneyMyQuotes helps customers to connect with the companies that provide this discount. 

You can increase your deductible thereby lowering your premium. This means your out of pocket expense is higher when you need to get coverage for an actual claim you may file due to an unforeseen event you are covered. You have to have enough coverage at a minimum to satisfy your loan lender to fulfill the deed of trust.