Going Up? Have you opened your California home insurance policy recently and noticed that your home insurance policy premium increased this year? Well, unfortunately, you are not alone. Many California home insurance policyholders will see an increase in their home insurance policy premium bill this year. Whether you are a homeowner, landlord, or renter here in California, you may see a higher home insurance policy premium this year. Why is this happening? Well we are glad you asked and we’ve got some answers for you!
Top 5 Reasons Why Your Home Insurance Policy Premium Increased
- Your Coverage ‘A’ Dwelling Amount Increased at Your Renewal. Many home insurance policies will automatically increase the amount of Dwelling (Coverage A) on your home insurance policy each year. This increase will insure that you have enough coverage to rebuild your home and takes into account inflation, cost of materials, and labor costs. Unfortunately, it also results in your home insurance policy premium increasing too.
- Cost of Building Materials Has Increased. If you’ve been to your local hardware store lately you may have already noticed that the cost of building materials has increased substantially this year. Likewise, your home insurance policy will display an increase in the Dwelling Coverage of your home to make sure the coverage is adequate for these price increases. This increase in coverage may be larger than normal this year. The increase in coverage will result in a home insurance policy premium increase.
- Your Home Insurance Carrier Increased Rates. It’s possible the Insurance Company that insures your home had an overall rate increase this year that applies to all of their policyholders. This happens occasionally because the Insurance Companies need to insure that they have funds available to pay all potential claims. These type of rate increases are closely monitored and must be approved first by the California Department of Insurance. A rate increase will result in an increase in your home insurance policy premium.
- You Filed a Home Insurance Claim. Filing a home insurance claim will cause your home insurance policy premium to increase. We know it hardly seems fair, but this is how it works.
- Discounts Are Not Being Applied. There are discounts available for home insurance policies and you want to be sure any available discounts are being applied to your policy. Do you have an Automatic Water Shut-Off Valve? There may be a discount for you if you do. Do you have your automobile insurance with the same company as your home insurance? If not, maybe it’s time for a quote to see if you can save some money. Talk to your insurance agent to see if there are some potential discounts that may apply to you so that you can lower your home insurance policy premium.
What Can You Do?
Talk to your insurance agent about the home insurance policy premium increase. An Independent Insurance Agent can check multiple companies for you to see if there are any other options available that may save you some money. Also, make sure you’ve looked into any discounts that may be available for you, including auto-home discounts, water shut-off discounts, or earthquake policy discounts to name a few.
As an Independent Insurance Agency, Rancho Cal Insurance Services, is here to help you with your home, auto, and business insurance. We represent several companies, not just one. Having choices often means that you save money. Give us a call today for a free quote for your auto insurance, home insurance or business insurance. We are happy to help you.
