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Why did my homeowners insurance go up?

We know any increase in expenses can be frustrating, and that includes your homeowners insurance premium. Many factors make up your premium, some that are within your control, and others that aren’t. Insurance companies rely on data to calculate rates based on how likely it is that a loss will occur. The more likely a loss, the higher the rate will be. Some information used includes details about the replacement cost of your home, its location and proximity to a fire station, and your loss history.

Some factors customers can’t directly control include: 

As with many products, the costs of building materials and labor increase over time. Factors like inflation, supply chain challenges and labor shortages can drive repair costs up even more.

More frequent and extreme natural disasters, like thunderstorms, floods, wildfires, hurricanes and hail, have caused catastrophic losses across the country. The higher cost of these events can cause premiums to rise, especially in areas most prone to these losses. 

Different areas vary greatly in the number of losses that happen, which can impact your premium. 

You may not be able to control prices, the weather or claims in your area, but everyone plays a role in the cost of insurance. You can help keep insurance premiums down by taking steps to mitigate losses and making claims in good faith.

Some additional things you can do to decrease your premium include:

Choosing higher deductibles can have a significant impact on lowering your overall premium. That said, be sure to select deductibles you’re comfortable paying in the case of a loss.

Amica offers a variety of homeowners insurance discounts* for bundling with other policies, using smart home devices, how you pay your premium, being claim-free and more.

New systems like electrical, heating, plumbing or roofing can earn you a credit that lowers your premium. If you’ve updated any of these systems recently, be sure to let us know.

What is my role in the process?

It can be expected that your premium will fluctuate up or down upon each renewal. It’s important to take the time to review your policy information each renewal to make sure you’re getting all possible discounts, and that your coverages are adequate and necessary. Your coverage needs may also change. Perhaps you had a scheduled jewelry item on your policy and you sold it. You can make sure your policy is up-to-date by reviewing it annually, and any time your coverage needs change.

We’re always happy to discuss your policy discount and coverage options with you to make sure you’re getting the best price and protection.

* Discounts may vary and are not available in all states.