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Why Did My Homeowners Insurance Premium Increase?
Written by: Staff Writer | April 16, 2026
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3 Factors Within Your Control That Cause Insurance Premiums to Increase
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4 Factors Out of Your Control That Cause Insurance Premiums to Increase
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5 Tips to Get Better Home Insurance Rates
If you just received your annual home insurance renewal notice and you’re a little shocked at your premium increase, you may have questions about what caused it and how to control the cost.
Read on to learn potential reasons why your homeowners premium increased and get some pointers on rate management.
3 Factors Within Your Control That Cause Insurance Premiums to Increase
1. Filing Claims
Often, after making a claim—or more specifically, multiple claims—you’ll see your home insurance premium increase as a result. Insurance companies are able to offer customers without a claims history better rates, as they’re deemed better risks. This is why some homeowners choose to forego making smaller claims, simply paying for repairs out of pocket.
2. Changes to Your Property
If you make improvements, like putting an addition on your home, you’ll likely see an increase in your premium since your homeowners insurance is based on the value of your property.
Similarly, if you add an “attractive nuisance” like a swimming pool or trampoline, you’ll be adding greater liability and risk to your property. You’ll need to alert your insurance agent so your liability coverage can be adjusted, which may increase your premium. If you don’t and there is a serious accident or fatality, you could find yourself without financial support for an exorbitant lawsuit.
3. Decrease in Insurance or Credit Score
Insurance companies use a number of factors to determine how likely it is that you’ll pay your premium on time. Your credit score is one such factor.
Another score used by agencies is the insurance score. This score calculates how likely you are to file a claim, and, as we saw above, more claims can negatively impact your rates.
When there is a decrease in your credit and/or insurance score, you’ll likely see an increase in your home insurance premium. Do your best to keep all accounts in good standing and pay on time to ensure your scores stay high.
4 Factors Out of Your Control That Cause Insurance Premiums to Increase
1. Inflation
Inflation doesn’t just affect product pricing; it also affects things like your home insurance. As the price of appliances, household wares, construction materials, and home services increases, so do homeowners insurance rates. This is because the insurance company may have to pay more to repair or replace covered items and needs to make sure it is charging enough to meet its potential obligations.
2. Natural Disasters
If a widespread natural disaster strikes your area, everyone may see a premium increase simply because of the massive regional loss. If weather patterns in your area change to make disasters more frequent or severe or other factors, such as wildfire controls or power grid maintenance, decrease, you may see preemptive hikes in your home insurance costs as insurers build (or rebuild) their reserves so they can pay on claims when they happen.
3. Aging Home
Older homes often aren’t equipped with modern wiring, plumbing, and storm/fire protections. As a result, split pipes, fires, wind damage, and water intrusion are more common. Sewer and drain backups also can be problematic. Plus, damage to one part of the home could make massive repairs necessary to bring the entire structure up to code. These characteristics can make older homes more expensive to insure.
4. Local Construction Costs
Part of the way insurance carriers calculate your premium is by estimating the cost to rebuild your home should there be a total loss. If you live in or move to an area that has higher than average labor costs, your premium will reflect that reality. Local labor shortages also can drive up construction costs, and material prices may be affected by supply disruptions. Both circumstances will increase premiums.
5 Tips to Get Better Home Insurance Rates
Now that you have a better sense of why your homeowners insurance premium could increase, you’re likely wondering how you can secure the best rate possible.
Here are five tips to help improve your chances for a better home insurance premium.
1. Look for Discounts
One of the first ways you can secure a lower premium is by searching for discounts. Some insurance companies will offer different savings incentives for consistently paying on time, not making claims, or being a longtime policyholder. Some offer multipolicy discounts, where you’ll receive incentives to carry more than one policy (like both auto and home insurance) with the same company.
2. Incorporate Technology
Installing loss-control devices in your home, such as smoke detectors, security alarms, and water leak monitors, can be a proactive measure that lowers your insurance premium.
3. Make Updates
If you live in a disaster-prone area, installing hurricane shutters or hardening your property against wildfires also can result in savings.
4. Opt for a Higher Deductible
The higher the deductible on your policy, the more money you’ll save on your premium. However, that means that, if a covered disaster does occur, you’ll be responsible for paying that deductible amount out of pocket. You may want to ask your agent about parametric insurance, which provides immediate cash that can be used after a disaster to cover urgent needs or your high deductible.
5. Shop Around
A qualified insurance professional who is not tied to a specific company will load your home and personal information into a computer program to find the best terms and prices available, giving you good choices that meet your needs.
IOA works with multiple insurers, some who offer specialty coverage for unique regional needs, so we can usually find a policy that works for your home and within your budget. We can even work with state-backed companies as necessary.
For help finding the best homeowners insurance coverage for you, request a quote here.
Written by
Staff Writer
|April 16, 2026
Jump to section
01
3 Factors Within Your Control That Cause Insurance Premiums to Increase
02
4 Factors Out of Your Control That Cause Insurance Premiums to Increase
03
5 Tips to Get Better Home Insurance Rates