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?