Homeowners Insurance Rates Increase?


The other day we received our bill for our annual homeowners insurance premium.  I opened it up and was shocked that it was $110 more than last year, at $724.  I didn’t think that in one year the rate would go up that much!  I looked over the bill, and there is a blurb about inflation: “Inflation has increased construction cost by 3.00 percent.  Your coverage and premium have been increased accordingly.”  What? 3% of $615 (what the premium used to be) is only around $18.  So why did my premium go up over $100?  Annoying.

We already have a $1000 deductible and I really don’t want to raise that.  I don’t know if I should shop around for homeowners insurance quotes, or if I should just stick with them because this is normal.  I have our cars insured with the company also, so we receive a discount for that.  I also like that the company that we’re with is a reputable company that I trust in case something happened.  It just makes me angry that our policy could go up that much in one year!  We haven’t had any claims, so that can’t have anything to do with it either.

Is that a normal increase in homeowners insurance?  Should I shop around again and maybe switch insurance companies?

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13 thoughts on “Homeowners Insurance Rates Increase?

  1. Kacie says:

    Goodness! It might be worth shopping around to at least see if this is an across-the-board change. Our new homeowner’s policy will be $511/year with our auto discount.


  2. Karen says:

    Definitely call around for quotes. If you get a quote for a lower amount, call and tell your current provider that you’re planning on leaving because you found a lower rate quote. Make sure you talk to a supervisor about it. I bet they’ll offer to match the lower rate to keep you as a customer. But make sure you’re really prepared to switch companies if they don’t offer to lower your rate!


  3. Money Beagle says:

    Ours went up by roughly that amount last year (2010) but this year it stayed relatively flat. It’s definitely worth shopping around and I would also talk to your agent if you have one that’s assigned to you. I actually built a pretty solid relationship with our agent and he was able to lower our total auto+home premiums by adding an umbrella policy, which doesn’t make a lot of sense but it’s true. If you talk to your agent, they may be able to look at different scenarios that could help you out, it’s definitely worth a call.


  4. Heather says:

    Ours went up over $100 each of two years in a row with no claims. We dumped them and got another policy, similar coverage, with another company for $125 less. I talked to the agent first and she said, “Yeah, that’s how much it costs.” Um. OK…


  5. AJ says:

    Our new homeowners insurance policy will be $802/year. I thought this was good, but reading everyone else’s rates now I’m not so sure!!


    AJ Reply:

    And the $802/year is combined with my car insurance, so it’s a discounted rate. Now it seems high. 🙁


  6. Steve says:

    I find every year car and home insurance premiums go up resulting in me changing insurers. What i do is use a insurance comparison website to find the cheapest quotes and then having found them contact the insurers directly as by dealing directly with me they can save on the commissions they would have paid to the introducer and pass some of it back to me in cheaper premiums.
    Give it a try and you might be pleasantly surprised by how much you can save.


  7. Becky R says:

    My homeowner’s insurance (without flood coverage) is $1,200 a year and I have to pay in one lump sum. I shopped around, but because I live within 1 mile of the bay I pay so much for possible wind damage from storms, hurricane’s, etc.

    My house is 900 square feet, so that is a crazy amount, but I have no choice I have to pay.

    I will also have to get flood insurance (as it is required by the mortgage company due to my entire town being a flood zone and in 55 years this house has never flodded, I know because I bought it from my grandma) The cheapest flood insurance I could find is $1,600 a year because we are in this bad zone.

    Stressings as not sure how I can squeeze another $100 plus dollars out of each month’s budget to pay this new bill.


  8. Brad says:


    If it was me and I saw this kind of jump, I’d shop out around. Your premium increase seems way too steep, particularly in this market environment. Happy shopping.



  9. Earl Waters says:

    I am not associate with this company, however they very helpful getting me some really cheap car insurance. I know they only do insurance for California residents. My Driving record is ok, and they were able to get me full coverage for $39 a month. I think they are insurance brokers so go to 100’s of company’s and find the best rate in a quick time. I forgot who I spoke to over there but I think anybody can help you. Here is the # 888-654-2033. Ps. they don’t pressure you to buy anything. Just call and say you would just like information. They also do other insurances but I’m not certain call and ask them 888-654-2033


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