Home insurance is still one of the best ways to protect your family and belongings. It’s a necessary component of your financial security and is invaluable for peace of mind. However, rates for this year are expected to increase due to a variety of factors. Nowell Agency is your go-to source of insurance information and we’re here to explore the reasons for current home insurance rate increases, as well as what you can do to mitigate those costs.
Why is My Home Insurance Going Up in 2022?
Home insurance rates are increasing in 2022 and there are a few reasons why. One reason is that home prices have been rising steadily for the past few years and the interest rates have been low, which means that insurance companies now have to account for that.
Additionally, over the past year, household construction costs have increased steadily. With the combination of the pandemic and historic low interest rates, more people have been moving, buying homes, and investing in renovation projects. All of this has resulted in a higher demand for building materials. Despite the increased demand, the pandemic has affected the supply chain, resulting in production issues, building material shortages, and a lack of transport for these materials. The ultimate result is that building material costs have soared and construction prices have consequently skyrocketed. For example, lumber costs are reported to have increased 340% since 2020 (National Association of Home Builders).
Finally, insurance companies are anticipating an increase in weather-related disasters, such as hurricanes and wildfires. As a result, they’re starting to charge higher homeowners premiums to cover the increased risk.
The higher cost of building materials means it costs more to rebuild a home after a disaster or loss, leading to increased homeowners insurance claim expenses. Many homeowner’s insurance carriers are increasing homeowners’ premium costs or reducing the amount of coverage to compensate for the risk of higher claim expenses. As a result, you may find that your current policy limits and coverage features no longer offer adequate protection. There goes your priceless peace of mind! Don’t worry, Nowell Agency has a few solutions!
Tips for Saving on Homeowners Insurance 2022
Not all is lost! There are a few ways to ensure your homeowner’s insurance this year provides the coverage you need. Nowell Agency insurance experts suggest taking the following measures:
Take the time to review your policy. You’ll want to examine things like whether you have replacement cost coverage (if you end up facing the need to replace or repair your home) or actual cash value coverage (provides compensation for the depreciated value of your home). Double check the numbers to ensure your homeowners insurance has the correct home replacement cost and overall value for your home.
Consider homeowners coverage adjustments. Contact your local professional Nowell agent who can help you determine if you need to make changes to your policy in order to have sufficient coverage in the event of a loss/disaster. This may require a change in your policy’s valuation method, getting specialized coverage, increasing your current limits, or implementing a policy endorsement.
Insist on open communication with your insurance carrier. Make sure to let your homeowners insurance company know if you do any home renovations or home improvements that may reduce your home insurance rates. This would include things like remodeling a bathroom or kitchen, installing solar power, adding a new deck, and so on.
If you’re shopping for home insurance, be sure to compare rates from different companies to find the best deal.
Nowell Agency is committed to providing affordable home insurance rates to homeowners across the nation. All it takes is a quick call to one of our home insurance agents nearby and we’ll find you the best rate for home insurance available! Click for a free homeowners insurance quote or call us today!
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The Nowell Agency has been my primary agent for many years and they are attentive, well-staffed, and easy to talk to. Their agency has helped me through state to state moves and career change and kept my assets covered.
My very first insurance experience was when I bought my first house and I called the Nowell agency for a quote. I had no idea what I needed or how much and they were so very kind and knowledgeable and explained everything to me in detail which I so much appreciated. That has been 4 years ago and im still a customer never plan to leave.
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