10 Reasons Home Insurance Rates Increase

WRITTEN BY: Mark Romero


It probably seems like your insurance rates are increasing every single year. You’re probably not wrong. There are many reasons your home insurance rates may increase year on year. Not all of them are things you can change, but some may.

1. You Made a Claim

The main reason your insurance rates may increase is if you made a claim against your insurance policy. If you claim, your insurance company determines you as a higher risk than before.

2. Your Neighbors Made a Claim

While you may think this shouldn’t impact you, it depends on what your neighbors made a claim for. If people in your neighborhood make a high number of claims, it can cause your insurance provider to increase rates across the board.

3. Your Credit Score Fell

Insurance companies often use your credit score to decide:

  1. If they will offer you a policy.
  2. How much that policy will cost you.

Some states won’t allow companies to use this information to determine your rates, but many states still allow it.

Typically, the higher your credit score, the lower the cost of home insurance. Insurance companies suggest that people with higher credit scores are less of a risk than those with lower scores, but this is widely debated. However, companies still use this logic to determine rates.

4. You Adopted a Dog

Having a dog can increase your premium, as dog bite claims can be pricey. Not all dogs will bite, but there’s always the risk that it could happen. 

More than 4.5 million people are bitten by dogs each year in the United States, and over 800,000 people a year need to get medical attention for dog bites, according to a study by the Centers for Disease Control and Prevention (CDC).

The riskiest breeds of dogs, according to insurance providers, include:

  • Akita
  • Alaskan Malamute
  • American Staffordshire Terrier
  • Bullmastiff
  • Chow Chow
  • Doberman Pinscher
  • German Shepherd
  • Great Dane
  • Pitbull
  • Presa Canario
  • Rottweiler
  • Siberian Husky
  • Staffordshire Bull Terrier
  • Any wolf hybrids
  • Any dog with a history of biting or vicious behavior

According to the Insurance Information Institute, the average dog bite claim cost was $50,245 in 2020

5. You Improved Your Home

It might sound counterintuitive, but improving your home can increase your insurance rates. This is because the ‘better’ your home is, the more costly it would be to repair or replace. This is reflected in the price of your premium.

6. You Purchased an ‘Attractive Nuisance’

An attractive nuisance is something like a swimming pool, treehouse, or trampoline. It may attract people into your yard (invited or not!) and increases the risk of someone injuring themselves. Unfortunately, most places consider you responsible for injuries, even if they are caused when someone is trespassing.

Other attractive nuisances include:

  • Treehouses
  • Swing sets
  • Slides
  • Power tools
  • Old vehicles

Anything that could attract curious people into your yard may be considered an attractive nuisance.

7. Discounts Came Off Your Policy

Another reason your premium may have increased is if you had discounts applied to your previous years that may have been removed at renewal. Double-check your policy documents and ask your insurance providers about any discounts you may be eligible for. 

8. Inflation

The price of everything increases each year in line with inflation. If the cost of building materials and labor increases, the cost of repairing or rebuilding your home will also increase. This will lead to your home insurance policy costing you more.

9. You Increased Your Coverage

The more coverage you need, the higher your premium will be. If you’ve increased the level of coverage from one year to the next, your rates will likely jump. Make sure you compare providers to find the best available price.

10. Natural Disasters Or Bad Weather Increased

If you live in an area prone to natural disasters, your insurance premiums are likely higher than in an area without them. However, if the frequency of natural disasters or alarming weather increases, your insurance premiums may increase too.


What are three things that might make homeowner’s insurance go up?

Three main things that might make homeowners insurance go up include if you made a claim if many people in your area made claims or the general increase in inflation.

Do home insurance premiums go up every year?

Typically, home insurance premiums will rise with the cost of inflation. Look into any discounts you may be eligible for to lower your rates.

What factors affect home insurance costs?

Several different factors impact home insurance costs, for example, where you live, the cost to repair or rebuild your home, and the deductible you choose to pay.

What can impact the rating of a home policy?

Many things can impact the rating of a home policy, including the location of the home, the amount of coverage you need

Why are home insurance rates so different?

Rates can vary dramatically between providers depending on each provider’s factors when determining the price.

Find Quality Home Insurance With Great Rates

Just because your home insurance policy is likely to increase in price each year doesn’t mean you should just stick with the same provider every time it’s up for renewal. It’s important to look into why your home insurance rates increase and shop around and compare rates to make sure you get the best deal.