An analyzed report found that the premiums of personal insurance's rate rose to 5.8 %. Every province felt the increase in home insurance since last year. The quick increase has been felt mostly on Alberta (12.1%) and British Columbia (11.2%). The report also found out that the increase in home insurance costs started since 2015.
Home insurance is a necessary move for an unknown future. But as the years passed, its costs continue to increase. Here are the 3 reasons why home insurance costs continue to rise:
- Construction Costs Increased
The cost of rebuilding your home can distinguish how much the premium you have to pay for is. If your dwelling limit is high, your premium cost will be the same. The cost of the local construction determines how much your home rebuilding will total. If the construction and its materials and labor cost increases, your premium will surely follow.
- The Price of Home Insurance is "Too Cheap"
Insurance companies have been generous on customers as experts say. Terms on replacement costs were too appealing when in fact companies are actually replacing the entire house. With a climate that undergoes certain changes in a span of time, profit made in a year can be wiped out by a single natural calamity. According to experts, the past climate is now unreliable to distinguish what will happen in the future.
- Climate Change is a Global Factor affecting Premiums
Over $1.9 billion was paid by insurance companies in 2018 because of climate change. Companies are expected to pay out $400 million dollar a year until 2000s due to severe weather conditions. Today, this amount can be withdrawn by a single calamity like the tornadoes in Canada which cost insurance companies to pay out $410 million and is expected to increase every year.
Natural calamities are a factor that raises insurance costs for policyholders because companies are actually paying more. Moreover, businesses also need insurance and that’s why mega-insurers offers reinsurance.
What Can You Do?
Insurer's respond to all of this is to deduct from policies and making low limit benefits. The climate is irrevocable and out of people's hands to control but there are still ways to minimize your home insurance costs.
It's Time for You to Switch Insurance Provider.
This is applicable to those who live in coastal areas which hold insurance from the government. Analyze your bills and think if you really have to switch providers. You may find out that you're actually paying more from government insurances than obtaining insurance from private providers.
Check Your Homes and Plan for Future Risks.
Make your home highly prepared for future risks and low-cost to the eye of insurance providers. Upgrade your home's plumbing and electrical systems and modernize them. Make your home ready for winter and put storm shutters as well as make your garage disaster ready. In this way, providers may offer you lower rates since your home has upgrades and does not need more terms from insurance providers.
Talk to Your Insurance Company.
Set an appointment or call your provider and have them explain why there is an increase in your premiums. This may help you understand why the increase happened and they may suggest ways to manage your payments more thoroughly.
At Cornerstone Insurance Agency, we do our best in making sure that our clients are well-protected with affordable and comprehensive policies. We make sure to go the extra mile to help you with your needs. To learn more about how we can help you, please contact our agency at (770) 413-0807 or Click Here to request a free quote.