Unfortunately, prices are going up everywhere. Whether it is your electric bill or higher prices at the gas pump – rising costs are affecting everyone. Many factors determine what you pay for property insurance. Rates are primarily based on the risk of unexpected damage to the property, along with the actual cost to repair property damages.
Some of the other factors that can change your insurance rate:
MATERIAL AND LABOR COSTS
Just like everyone else, insurance companies are paying more for things like building materials and labor. In some cases, supply chain shortages and skilled labor costs are escalating much higher than the rate of inflation.
OVERALL CLAIM TRENDS
In recent years, wind, hail, water damage, and damage from freezing temperatures due to shifting weather patterns have increased the number of claims.
NATURAL DISASTERS
Record-breaking wildfire seasons, stronger hurricanes and historic temperature fluctuations have contributed to the increase in property insurance costs.
POLICY CHANGES
Home renovations, including new windows, new siding, upgraded bathrooms and kitchens, new appliances, and other enhancements, may increase replacement costs, leading to an increase in insurance premiums.
Do you have questions about what can you do to lower your insurance costs?
Contact Thorp & Trainer at 401-596-0146 to review your policy and discuss policy options that make the most sense for you and your family.