Why did your home insurance go up?

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If you haven’t noticed that your home insurance rates have increased, consider yourself lucky. This is a nationwide issue that’s impacting homeowners, homebuyers and related industries. Even renters aren’t immune to the effects of the home insurance market. In short, the whole country is understandably frustrated with the situation.

But why did your home insurance go up in 2024?

The amount that insurance companies are paying out for claims has gone up as a result of inflation, weather events and, yes, carriers need to make a profit in order to say in business. There are ways that you can lower your home premiums, but it’s still wise to prepare for an increase this year (if you haven’t already been hit with one). We’ve outlined some of the home insurance premium increase reasons below to help explain what is happening and give you an idea of what to expect in 2024 and beyond. The VIU by HUB Advisory Team is always available to provide you with more personalized information.

Common reasons for increased home insurance rates


Inflation hits all goods and services. Insurance is no exception. Think about your last trip to a home improvement store. As inflation drives up the prices of materials, labor and other construction-related expenses, the cost to repair or replace your home – or items in it – also goes up. This directly impacts insurance premiums by way of increased rates so that insurance companies have money on hand to pay out in the event of a claim. Without that increased money on hand, insurance companies would be unable to reimburse homeowners after claims, leading to a different type of insurance crisis. In short, rising home insurance costs are explained largely by the impact of inflation on replacement costs.

Extreme weather events

Climate’s impact on home insurance rates is undeniable. Extreme weather events, including hurricanes, wildfires and floods, have become more frequent and severe in recent years and these are all factors affecting home insurance rates. The increase in these natural disasters directly results in increased claims – leading to increased expenses for insurance companies. Not only are the numbers of disasters increasing, but the severity is greater, too. This leads to more damages per event, which has caused insurers to reevaluate their risk assessments and adjust premiums accordingly. Areas that used to be “safe” from these weather patterns, and their related insurance costs, are now on the risk maps.

Home improvements and renovations

Home improvements and renovations can have a big influence on home insurance rates. Depending on what work is done, the property's overall value and rebuild cost can go up quite a bit. Think: a new garage or home additions. The more a house is worth, the more it will cost to rebuild, the more insurance companies must prepare in advance for the possibility of a claim. Beyond the repair costs, there can be additional liability concerns. A pool is fun in the summer, but your insurance company has to consider the price of repairing it after a wildfire as well as the possibility of a neighbor being injured at a pool party in your backyard. Maintaining open communication with insurers about the nature and scope of improvements allows for a more accurate evaluation of the property's insurable value, helping homeowners make informed decisions about coverage and premiums in the evolving landscape of home insurance.

Changes in claim history

Recent changes in claim history have an impact on future home insurance premiums, with even minor claims influencing rates for a certain period. Insurers use risk pools, where policyholders with similar risk profiles are grouped together. When claims occur within this pool, it affects the overall risk and cost, potentially leading to premium adjustments for all policyholders in that category. Even seemingly minor claims can contribute to this dynamic, influencing the insurer's perception of risk. To navigate the claims process and minimize the potential for premium increases, homeowners should exercise prudence when filing claims. Evaluating the cost of repairs versus insurance deductibles and potential premium hikes is a strategic approach that can help maintain a claim-free history.

Location and risk factors

Your location and risk factors for home insurance have likely changed in recent years. No, your location didn’t actually change, but what your location means to insurers may have. The geographical location of a property plays a role in determining your premiums, as it exposes homes to specific risks such as flood zones, wildfire-prone areas or elevated crime rates. Homes in areas of higher risk take on higher premiums so that homeowners share the risk with insurance companies.

Additional factors like the age and condition of the home, building materials used and proximity to fire stations contribute to the overall risk assessment. Older homes may face higher premiums due to potential maintenance challenges, while fire-resistant materials and proximity to emergency services can have a mitigating effect. Basically, your home is unique and may not have the same risk factors as your next-door neighbor or your friend across town who has a home from the same year.

Changes in coverage or deductibles

Changes in coverage or deductibles can significantly impact home insurance premiums. Increasing coverage limits, which expand the scope of protection, generally leads to higher premiums as insurers are taking on a greater potential financial risk. Similarly, lowering deductibles, while reducing out-of-pocket expenses in the event of a claim, typically translates to higher premiums as the insurer assumes a larger portion of the financial responsibility as a result of said claim.

Homeowners need to strike a balance between coverage needs and affordability, understanding that more extensive coverage and lower deductibles come at a higher cost. The VIU by HUB Advisory Team can help make sense of what’s right for your situation and help you come to a personalized plan that fits your home and your finances.

Insurance company changes

Changes in insurance providers or shifts in internal company policies can cause adjustments in home insurance rates. When switching providers, you may encounter variations in underwriting practices, risk assessments or policy terms that impact the premium calculation. This is not a reason to stay with your current insurance company if they’re not meeting your needs, but rather a reminder to be aware of what changes you may encounter if you decide to change. Besides, even if you stay with the same insurer, changes to their internal policies or risk tolerance can lead to adjustments in rates for existing policyholders.

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What you can do about it

Shop around and compare quotes

One of the most effective strategies for lowering your insurance premium is to shop around and compare quotes. VIU by HUB’s online quote comparison tool simplifies this process, offering a user-friendly platform to explore multiple quotes and assess various coverage options. To make the most informed decision, pay attention to key details, including coverage limits, deductibles and any additional features or premium discounts. This proactive approach means that you not only find the best rate but also secure the coverage that fits your unique circumstances.

Review your coverage and adjust when necessary

Regularly reviewing your current home insurance coverage helps to make sure it aligns with your evolving needs. You’re not the same as you were five years ago, why should your home insurance be? Assess the value of your possessions, the current state of your home and any changes in your circumstances. Identify areas where adjustments may be needed, including optional coverages, and consider whether certain features can be adjusted or removed to better suit your requirements. Contact your agent or a VIU by HUB Advisor if you have questions about what is on your policy.

Improve your home's risk profile

Improving your home's risk profile can be a great way to potentially lower home insurance premiums. Consider installing safety features such as smoke detectors, burglar alarms or fire extinguishers. These not only make your home more safe, but may also qualify you for insurance discounts. Upgrading vulnerable elements, such as updating plumbing or securing windows, can reduce the likelihood of damage and contribute to a more favorable risk assessment. Some insurers offer discounts for these proactive risk mitigation measures, recognizing the efforts homeowners make to safeguard their properties.

Build a good claims history

Maintaining a clean claims history can result in lower home insurance premiums. Insurers often consider your claims history as a key factor in assessing risk, and a clean record reflects a low risk for claims. In the event that a claim is necessary, thoroughly document the incident, provide accurate information, and collaborate with your insurer. A proactive approach to preventing claims and handling them efficiently when they do arise protects your property and also contributes to a positive claims history, which may result in more favorable premium rates in the long run.

Contact your insurance company

Maintaining open communication with your insurance provider is crucial when facing a rate increase. Contact them for a better understanding of the specific reasons behind your rate increase and work together toward potential solutions. They can tell you about alternative coverage options and available discounts, and you can update them on any changes in your circumstances that may warrant a change to your premium. Negotiating lower rates is often possible when you keep lines of communication open.

Better still, keep a relationship with an insurance broker, like VIU by HUB, and use their relationships with carriers to your advantage.


Your home is not just a property; it's a cherished asset deserving of comprehensive protection. Whether you're reassessing your current coverage, delving into alternative options or seeking clarity on rate adjustments, the VIU by HUB Advisory Team is here to empower you. Let us provide the peace of mind and financial security your home deserves throughout every chapter of homeownership.

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