One of the most common questions we get at Huser Insurance is:
“Tyler, I’ve never filed a claim. Why did my homeowners insurance go up?”
It’s a fair question.
Many homeowners assume that if they haven’t had any claims, their insurance premium should stay the same year after year. Unfortunately, that’s not always how insurance works.
The truth is that home insurance rates across Indiana have been increasing over the last several years, and there are several reasons why.
More Storms = More Claims
Indiana has experienced its share of severe weather over the past few years.
Windstorms, hail damage, tornadoes, and heavy rain have led to a significant increase in insurance claims across the state. Even if your home wasn’t damaged, insurance companies spread risk across all policyholders.
When insurance companies pay more claims, rates often increase for everyone.
The Cost to Rebuild a Home Has Increased
If your home were destroyed tomorrow, the insurance company would need to rebuild it using today’s labor and material costs.
The problem?
Everything costs more than it did a few years ago.
Lumber, roofing materials, electrical supplies, plumbing materials, and contractor labor have all increased substantially. Insurance companies have had to adjust coverage limits to keep up with those rising costs.
While that may increase your premium, it also helps ensure your home is properly insured if a major loss occurs.
Insurance Companies Have Been Losing Money
This may surprise some people, but many insurance companies have actually lost money over the last few years.
Between increased claim frequency, severe weather events, inflation, litigation costs, and higher repair expenses, many carriers have paid out more than they collected in premiums.
As a result, many companies have raised rates, tightened underwriting guidelines, or both.
This isn’t unique to Indiana—it’s happening across much of the country.
Your Home May Simply Be Older
As homes age, they typically become more expensive to insure.
Insurance companies pay close attention to items such as:
- Roof age
- Electrical systems
- Plumbing systems
- HVAC equipment
- Prior claims history
If your roof is approaching the end of its expected lifespan, you may see premium increases or changes to how roof claims are covered.
Property Values Continue to Rise
Many Indiana homeowners have seen their home values increase significantly over the last several years.
That’s great news if you’re selling.
However, insurance companies also need to increase dwelling limits to keep pace with those higher replacement costs, which can lead to premium increases.
The Good News
While rates have increased, we’re starting to see signs that the insurance market is beginning to stabilize.
At Huser Insurance, we’re finding more opportunities to help clients save money and improve coverage than we were a year or two ago.
As an independent agency, we represent multiple insurance companies. That means we’re able to compare options and help determine whether your current policy is still the best fit for your situation.
What Should You Do?
If your homeowners insurance recently increased, don’t panic.
Instead, ask yourself a few questions:
- Has anyone reviewed my policy recently?
- Do I still have the right coverage?
- Have my deductibles changed?
- Am I receiving all available discounts?
- Would another insurance company be a better fit?
Sometimes the answer is to stay exactly where you are. Other times, a simple review can uncover significant savings or better coverage options.
Let’s Review Your Coverage
If your homeowners insurance premium has increased and you’d like a second opinion, we’d be happy to help.
Our team can review your current coverage, explain what’s driving your premium, and compare options from several insurance companies.
There is no cost, no obligation, and no pressure.
Just honest advice from a local agency that’s here to help.