{"id":3374,"date":"2025-09-04T10:30:50","date_gmt":"2025-09-04T10:30:50","guid":{"rendered":"https:\/\/goldenroosterinsurance.com\/blog\/?p=3374"},"modified":"2025-12-29T18:24:52","modified_gmt":"2025-12-29T18:24:52","slug":"why-is-home-insurance-going-up","status":"publish","type":"post","link":"https:\/\/goldenroosterinsurance.com\/blog\/why-is-home-insurance-going-up\/","title":{"rendered":"Why Is Home Insurance Going Up? 7 Factors Driving Higher Premiums in 2025"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">Recently, a client booked a call with me, and she talked about how she opened her home insurance notice of renewal this January and had\u00a0 one question in\u00a0 mind &#8220;Why is home insurance going up?&#8221;. She was shocked because she saw that her premium had jumped by nearly 20% compared to what she was seeing last year, even though she is sure that she hadn\u2019t filed a single claim.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">This situation happens to a lot of people and it is always better to seek guidance. There are multiple factors that are being considered like the cost of construction rising, severe weather events, and also global insurance trends. We understand that these are beyond anyone\u2019s control but understanding them can help you make a smarter decision about your coverage.<\/span><\/p>\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/goldenroosterinsurance.com\/blog\/why-is-home-insurance-going-up\/#7_Factors_Driving_Higher_Premiums_in_2025\" >7 Factors Driving Higher Premiums in 2025<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/goldenroosterinsurance.com\/blog\/why-is-home-insurance-going-up\/#What_You_Can_Do_to_Lower_Your_Premium\" >What You Can Do to Lower Your Premium<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/goldenroosterinsurance.com\/blog\/why-is-home-insurance-going-up\/#Final_Thoughts\" >Final Thoughts<\/a><\/li><\/ul><\/nav><\/div>\n<h2><span class=\"ez-toc-section\" id=\"7_Factors_Driving_Higher_Premiums_in_2025\"><\/span><strong>7 Factors Driving Higher Premiums in 2025<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-3376 size-full\" src=\"https:\/\/goldenroosterinsurance.com\/blog\/wp-content\/uploads\/2025\/09\/imageedit_43_2285531814.jpg\" alt=\"A piggy bank and shopping cart on a seesaw, illustrating the balance between savings and spending amid rising inflation.\" width=\"1146\" height=\"759\" srcset=\"https:\/\/goldenroosterinsurance.com\/blog\/wp-content\/uploads\/2025\/09\/imageedit_43_2285531814.jpg 1146w, https:\/\/goldenroosterinsurance.com\/blog\/wp-content\/uploads\/2025\/09\/imageedit_43_2285531814-300x199.jpg 300w, https:\/\/goldenroosterinsurance.com\/blog\/wp-content\/uploads\/2025\/09\/imageedit_43_2285531814-1024x678.jpg 1024w, https:\/\/goldenroosterinsurance.com\/blog\/wp-content\/uploads\/2025\/09\/imageedit_43_2285531814-768x509.jpg 768w, https:\/\/goldenroosterinsurance.com\/blog\/wp-content\/uploads\/2025\/09\/imageedit_43_2285531814-150x99.jpg 150w\" sizes=\"auto, (max-width: 1146px) 100vw, 1146px\" \/><\/p>\n<ol>\n<li><span style=\"font-weight: 400;\"><strong>Inflation and Rising Construction Costs<\/strong><br \/>\n<\/span>Over the last few years, the cost of construction materials like lumber, steel, and concrete has risen significantly and in addition to that, there are skilled labor shortages which means the contractors are charging even more for the work that they do.Insurance companies will calculate your premium based on the replacement cost of your home and the total cost that it would take to rebuild your home from the ground up if it were destroyed. So when construction costs are high, of course that replacement cost rises too.<\/li>\n<li><span style=\"font-weight: 400;\"><strong> Increased Frequency and Severity of Natural Disasters<\/strong><br \/>\n<\/span>At this time when disaster are becoming more frequent, and when disasters strike, insurance companies will pay out billions in claims. And to recover from these losses and prepare for the ones in the future, insurers spread the costs across all policyholders. That means even if you live far from the coast or in an area that hasn\u2019t been directly hit by the disaster, you may still see higher rates.<\/li>\n<li><span style=\"font-weight: 400;\"><strong> Reinsurance Costs Are Climbing<\/strong><br \/>\n<\/span>Insurance companies also buy their own insurance, called <b>reinsurance<\/b>. This will protect them from catastrophic losses when there is a large-scale disaster that occurs.<br \/>\nBut reinsurance itself has become more expensive. Global risks such as climate change and economic uncertainty will be pushing reinsurance rates higher. When insurers have to pay more for their safety net, they will pass those costs along to the homeowners.<\/li>\n<li><span style=\"font-weight: 400;\"><strong> Supply Chain Disruptions and Labor Shortages<\/strong><br \/>\n<\/span>Since the occurrence of the pandemic, supply chain issues haven\u2019t fully disappeared. The delays in obtaining some materials like roofing shingles, HVAC systems, or specialty windows can drag out the repair timelines.When repairs do take longer, insurance companies will end up paying more in additional living expenses which is the coverage that pays for the hotels or rentals if you are unable to live in your home during the renovations or repairs.Labor shortages also play a critical role. With fewer skilled workers that are available, wages are more expensive, which increases the overall cost of the claims. To account for these higher expenses, insurers will increase the premiums.<\/li>\n<li><span style=\"font-weight: 400;\"><strong> Increased Claims Activity in Your Region<\/strong><br \/>\n<\/span>This isn&#8217;t just about your individual history, they\u2019re also about your community. Insurance companies will analyze claims at the ZIP code and regional level. So, if your area has seen a climb in claims whether from hail, theft, flooding, or fires, everyone in that area might experience higher premiums, even if they have never filed a claim themselves.This \u201c<strong>shared risk<\/strong>\u201d model means that your neighbors\u2019 experiences can possibly and directly affect your costs. Urban areas, on the other hand, may see increases due to theft or vandalism, while rural areas may see higher rates due to disasters like storm damage.<\/li>\n<li><span style=\"font-weight: 400;\"><strong> Home Value Increases and Upgrades<\/strong><br \/>\n<\/span>If your home\u2019s value has increased it would mean that you have built yourself equity. But remember, the higher the property values also means the higher insurance costs.Insurance is based on what it would cost to rebuild your home at today\u2019s prices, not what you originally paid for it. If your $250,000 home is now valued closer to $350,000, your policy needs to reflect that.<\/li>\n<li><span style=\"font-weight: 400;\"><strong> Adjustments to Coverage and Deductibles<\/strong><br \/>\n<\/span>Many insurers are making some changes to policies themselves. Which may include ,the higher deductibles for certain risks like wind or hail, excluding the specific types of damage, such as flooding or mold and, adding mandatory riders for those living in the high-risk areas.It is always important to review your policy carefully each year to better understand any changes in your coverage or deductibles.<\/li>\n<\/ol>\n<h2><span class=\"ez-toc-section\" id=\"What_You_Can_Do_to_Lower_Your_Premium\"><\/span><strong>What You Can Do to Lower Your Premium<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">While you can\u2019t avoid some premium increases there are steps you can take to reduce costs:<\/span><\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-3377 size-full\" src=\"https:\/\/goldenroosterinsurance.com\/blog\/wp-content\/uploads\/2025\/09\/imageedit_46_5916746808.jpg\" alt=\"Inside a store, a man and woman are focused on a sale sign, indicating their interest in the promotional items available.\" width=\"1146\" height=\"765\" srcset=\"https:\/\/goldenroosterinsurance.com\/blog\/wp-content\/uploads\/2025\/09\/imageedit_46_5916746808.jpg 1146w, https:\/\/goldenroosterinsurance.com\/blog\/wp-content\/uploads\/2025\/09\/imageedit_46_5916746808-300x200.jpg 300w, https:\/\/goldenroosterinsurance.com\/blog\/wp-content\/uploads\/2025\/09\/imageedit_46_5916746808-1024x684.jpg 1024w, https:\/\/goldenroosterinsurance.com\/blog\/wp-content\/uploads\/2025\/09\/imageedit_46_5916746808-768x513.jpg 768w, https:\/\/goldenroosterinsurance.com\/blog\/wp-content\/uploads\/2025\/09\/imageedit_46_5916746808-150x100.jpg 150w\" sizes=\"auto, (max-width: 1146px) 100vw, 1146px\" \/><\/p>\n<ol>\n<li><span style=\"font-weight: 400;\"><strong> Shopping Around Annually<\/strong><br \/>\n<\/span>You can get quotes from different or multiple insurers before thinking of renewing. The rates can vary widely, and if you switch providers you could potentially save hundreds.<\/li>\n<li><span style=\"font-weight: 400;\"><strong> Consider Raising Your Deductible<\/strong><br \/>\n<\/span>The higher the deductible is,\u00a0 usually means a lower in premium. You just have to make sure that you can afford the deductible amount if ever you\u2019ll need to file a claim.<\/li>\n<li><span style=\"font-weight: 400;\"><strong> Bundle Policies<\/strong><br \/>\n<\/span>There are many insurers that offer discounts when you bundle your home and auto insurance all together.<\/li>\n<li><span style=\"font-weight: 400;\"><strong> Install Safety and Smart-Home Devices<\/strong><br \/>\n<\/span>Getting security systems, smoke detectors, water leak sensors, and smart thermostats installed can often qualify you to avail some discounts.<\/li>\n<li><span style=\"font-weight: 400;\"><strong> Ask About Discounts<\/strong><br \/>\n<\/span>You may qualify for loyalty, claim-free, senior, or occupation-based discounts. It is important to ask your agent what\u2019s available. Always ask your agent which discounts are available and which you qualified for.<\/li>\n<li><strong>Maintain Your Home<\/strong><br \/>\nA well-maintained home can be beneficial for you. A regular home maintenance can reduce the risk and oftentimes lower premiums.<\/li>\n<li><span style=\"font-weight: 400;\"><strong>Regularly Review Your Coverage<\/strong><br \/>\n<\/span>Yes there is such a thing called underinsured and it can leave you with large out-of-pocket costs if disaster strikes. So make sure your policy reflects your home\u2019s true value and any upgrades you\u2019ve made.<\/li>\n<li><span style=\"font-weight: 400;\"><strong> Improve Your Credit Score<\/strong><br \/>\n<\/span>In many states, insurers take in consideration credit scores when setting up premiums. If you have a higher credit score you can sometimes get lower rates.<\/li>\n<li><span style=\"font-weight: 400;\"><strong> Stay Claims-Free if Possible<\/strong><br \/>\n<\/span>Avoiding the filing of small claims can sometimes save you hundreds. As long as the repair is minor and affordable, it might be better to cover it yourself to keep your record clean.<\/li>\n<li><span style=\"font-weight: 400;\"><strong> Work With an Independent Agent<\/strong><br \/>\n<\/span>To find the best combination of coverage and price, your go-to could be independent agents. They can explain to you the comparison between multiple insurers and help you find what suits you best.<\/li>\n<\/ol>\n<h2><span class=\"ez-toc-section\" id=\"Final_Thoughts\"><\/span><strong>Final Thoughts<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">It\u2019s not just one thing, it\u2019s a combination of different factors. These forces are creating a perfect storm that\u2019s driving your premiums higher across the country.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Don\u2019t treat home insurance as more than just another type of bill but rather think of it as protection for your biggest investment. Staying informed and proactive ensures that you\u2019re covered and also pays a fair price for that peace of mind.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Recently, a client booked a call with me, and she talked about how she opened her home insurance notice of renewal this January and had\u00a0 one question in\u00a0 mind &#8220;Why is home insurance going up?&#8221;. She was shocked because she saw that her premium had jumped by nearly 20% compared to what she was seeing&#8230;<\/p>\n","protected":false},"author":1,"featured_media":3407,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_kad_blocks_custom_css":"","_kad_blocks_head_custom_js":"","_kad_blocks_body_custom_js":"","_kad_blocks_footer_custom_js":"","_kad_post_transparent":"default","_kad_post_title":"default","_kad_post_layout":"default","_kad_post_sidebar_id":"","_kad_post_content_style":"default","_kad_post_vertical_padding":"default","_kad_post_feature":"","_kad_post_feature_position":"","_kad_post_header":false,"_kad_post_footer":false,"_kad_post_classname":"","footnotes":""},"categories":[17],"tags":[],"class_list":["post-3374","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-insurance"],"taxonomy_info":{"category":[{"value":17,"label":"Insurance"}]},"featured_image_src_large":["https:\/\/goldenroosterinsurance.com\/blog\/wp-content\/uploads\/2025\/09\/imageedit_17_7359475781-1024x576.jpg",1024,576,true],"author_info":{"display_name":"Janeth Ochoa","author_link":"https:\/\/goldenroosterinsurance.com\/blog\/author\/janeth\/"},"comment_info":0,"category_info":[{"term_id":17,"name":"Insurance","slug":"insurance","term_group":0,"term_taxonomy_id":17,"taxonomy":"category","description":"","parent":0,"count":23,"filter":"raw","cat_ID":17,"category_count":23,"category_description":"","cat_name":"Insurance","category_nicename":"insurance","category_parent":0}],"tag_info":false,"_links":{"self":[{"href":"https:\/\/goldenroosterinsurance.com\/blog\/wp-json\/wp\/v2\/posts\/3374","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/goldenroosterinsurance.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/goldenroosterinsurance.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/goldenroosterinsurance.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/goldenroosterinsurance.com\/blog\/wp-json\/wp\/v2\/comments?post=3374"}],"version-history":[{"count":6,"href":"https:\/\/goldenroosterinsurance.com\/blog\/wp-json\/wp\/v2\/posts\/3374\/revisions"}],"predecessor-version":[{"id":3512,"href":"https:\/\/goldenroosterinsurance.com\/blog\/wp-json\/wp\/v2\/posts\/3374\/revisions\/3512"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/goldenroosterinsurance.com\/blog\/wp-json\/wp\/v2\/media\/3407"}],"wp:attachment":[{"href":"https:\/\/goldenroosterinsurance.com\/blog\/wp-json\/wp\/v2\/media?parent=3374"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/goldenroosterinsurance.com\/blog\/wp-json\/wp\/v2\/categories?post=3374"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/goldenroosterinsurance.com\/blog\/wp-json\/wp\/v2\/tags?post=3374"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}