When you’re renewing your homeowner’s premium, you might find yourself asking, “Why did my hazard insurance increase?” The increase can be from a number of reasons, but some of the main ones include: overall inflation of the economy, increasing construction and labor costs, and a rise in natural weather events.
If you ever find yourself asking, “Why did my hazard insurance increase?” Inflation may be the answer. Inflation has been at an all-time high lately, which has increased the cost of nearly everything. Likewise, when the cost of items in your home, like your washing machine or refrigerator increase, the cost to insure those items will also increase. If it’s time for the inevitable, but dreaded, replacement of those appliances, your new Whirlpool washer might drive up your insurance rates quicker.
With that being said, events still happen, like a pipe bursting or a fire in the kitchen. And as frightening as it might seem, there could be a time when you actually have to use your home insurance to replace these items.
Additionally, if your home needs to be rebuilt for any reason this will requires labor and construction, which have also gone up in price. With more construction job openings and a rise in the cost of building materials, this could be another answer to your question of , “Why did my hazard insurance increase?” According to the U.S. Bureau of Labor Statistics, the cost of building materials has gone up by 18.6%. This increase, coupled with the 358,000 job openings in the construction field, has hazard insurance greatly increasing. Additionally, older homes can cost more to rebuild if they need to be built to abide by modern-day code. Good looks can be expensive, even when it comes to homes.
Trees might have fallen on your roof because of a hurricane, or your septic system drowned during the rain. The rise in natural disasters has led to expensive construction, due to these accidents. According to the National Centers for Environmental Information in 2021, there were 20 disaster events with $1billion in losses for each. With more and more floods and blown off roofs, insurance companies are raising their home insurance costs to deal with these losses in revenue. This is also prevalent in areas like California where earthquake and wildfire events are more common. Living in the tropics is great until you’re swimming in your living room. These instances also might answer your question of, "Why did my hazard insurance increase?”
We can’t change the factors that make you ask the question, “Why did my hazard insurance increase?” but we can help you make the best decision for an insurance policy that gives you optimal coverage at the best possible rates, even in an inflated market. Click here, to compare and save with Woop.