You may have recently seen the news about home insurance rates increasing—some reports even mention hikes as high as 27%. Understandably, that kind of number can cause concern, especially for homeowners trying to manage monthly expenses. Here’s what’s really going on behind the scenes and why your personal rate might not reflect that headline figure.
🏠 What’s Driving the Increases?
Insurance companies across the country are adjusting home insurance rates due to a combination of factors:
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Severe weather events – More frequent storms, floods, wildfires, and other disasters are leading to increased claims and higher payouts.
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Inflation and labor shortages – The cost to rebuild or repair homes has gone up significantly due to rising material costs and contractor demand.
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Overall claims activity – With more claims being filed and for larger amounts, insurers are recalibrating premiums to stay financially stable.
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It’s Not a Flat 27% for Everyone
While the news might highlight a 27% increase, that figure doesn’t apply universally. Ben Rister, a State Farm agent, offers some helpful context:
“[There] absolutely [will be] some increases to keep pace with claims activity. It won't be a flat 27% for every customer across the board – there are always a lot of factors in the rating. And, I know for sure every company is having to adjust some rates so I still believe we will be the most competitive option.”
In short: rate changes are happening, but they’re highly personalized.
🔍 What Affects Your Home Insurance Premium?
Your rate depends on a number of individual factors, including:
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The age and condition of your home
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Location (and proximity to risks like flooding, wildfires, or storm zones)
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Claims history—both yours and in your area
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Rebuilding cost, not market value
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Your selected coverage limits, deductibles, and endorsements
Insurers weigh all these details when determining your premium, so two neighbors could see very different adjustments.
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💡 What Homeowners Can Do
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Review your policy – Make sure your coverage reflects current rebuild costs and includes any updates you’ve made to the home.
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Ask about discounts – Security systems, upgraded roofing, and bundling with auto insurance can sometimes reduce your premium.
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Work with your agent – A knowledgeable agent can help adjust your coverage where needed or find savings you might be missing.
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Understand exclusions – Make sure you’re aware of what your policy does not cover (like flood damage), and consider whether additional coverage makes sense.
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Bottom line: While home insurance rates are increasing industry-wide, the impact on your policy will depend on your unique situation. If your renewal notice raises questions, don’t hesitate to ask. A quick review with a trusted advisor, like our recommended agent, Ben Rister, can go a long way toward making sure your coverage still fits your needs—and your budget!
