Why are Insurance Rates Going Up?

Adverse weather, higher repair costs, and greater liability risks are behind the increase in homeowner’s insurance rates.

Insurance prices have risen dramatically in recent years, particularly regarding homeowners’ policies. If you suffer sticker shock while shopping for coverage or paying your latest bill, you are likely wondering what is driving the increase. Hartman Insurance Agency, Inc. explains why homeowner’s insurance policy rates keep going up.

Reasons Behind the Rising Cost of Home Insurance

The price of everything, including homes, cars, and medical care, has risen dramatically in recent years. Not only are you paying more for most items, but you are also paying more for insurance coverage.

Insurance protects you against unexpected events and prevents having to pay out of pocket. While coverage costs have increased across the board, homeowners insurance rates, in particular, have spiked in recent years. According to a November 2023 Policy Genius report, the average amount of premiums jumped by more than 20% since 2022. Reasons behind rising costs include:

How to Reduce the Amount You Pay for Homeowners Insurance

Reducing your coverage may seem like the best way to reduce homeowner’s insurance costs, but it could cost you significantly more in the long run. Considering the overall increase in risk, it is important to have the appropriate amount of coverage in place. The Insurance Information Institute (III) offers tips on how you can save money while still protecting yourself and your property:

Discuss Your Options With Our Michigan Home Insurance Agents

Since 1946, Hartman Insurance has been helping to protect homeowners in the Saline and Ann Arbor area. To discuss options that can help lower your premium rates, give us a call or contact our Michigan home insurance agents online today.

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