Why is Home Insurance Increasing in Price?

The beginning of the year has seen a trend of homeowners insurance costs rising. Many customers ask why rates are increasing, and in this article, we will discuss some of the general factors that can contribute to increasing home insurance prices.

image of homes in a beautiful neighborhood


Inflation is one general factor that has contributed to the increase in insurance costs.  Businesses across many different segments of the economy have raised their prices in order to account for the effects of inflation, and insurance companies are no exception.   

Weather Related Incidents

As we’ve seen in recent past, severe weather can cause a large amount of damage to certain geographic areas. In determining rates, insurance companies take into account the possibility of a location being affected by various types of severe weather, including:

  • Floods
  • Hurricanes
  • Tornadoes
  • Wildfires
  • Droughts
  • Lightning
  • Hail
  • Damaging Winds
  • Winter Weather

home damaged due to trees falling onto property

Material and Labor Costs Rising

Another significant factor that has contributed to the rise in homeowners insurance premiums are the increases in building material and labor costs.  According to the National Association of Home Builders, there was a 12.1% increase in average construction prices from 2020 to 2021, and in 2023 prices reached their peak.  Insurance companies may take such increased construction costs into consideration when evaluating their premiums.  

Property Upgrades

If you have recently upgraded your home in the form of building an addition, remodeling your kitchen, putting in a pool, or another form of improvement, this can be another explanation for why your homeowners insurance premiums may have increased. Increasing your home’s square footage or otherwise increasing the value of your property can affect your premiums, as it could make it more expensive to repair or rebuild your home in the event of a covered loss.

carpenter building home

Claims Filed

If you have a previous insurance claims history, you may pay more when it comes to homeowners insurance. Homeowners with a prior history of filing claims may be viewed as a higher risk, which can impact premium cost.

Ways to Lower Home Insurance Costs

One way to save is to get quotes from other insurance carriers. As an independent insurance agency, we work with multiple carriers, from local companies based out of New England to nationally recognized names. Another great way to lower your insurance costs is to ask your insurance agent about possible discounts. For example, there are some discounts that you may qualify for if you make your home more resistant to severe weather or invest in a security system. Taking proactive measures such as these may help to prevent a claim. Another possible way to save on your insurance is to bundle insurance policies. For example, bundling your home and auto with the same company may potentially help you save. To learn more on how you could bundle your insurance contact your local Cross Insurance agent today.

Request a Quote for Homeowners Insurance

To request a quote for your home, you can fill out our form here. From there, an insurance professional will collect more information and details on what policies and coverage limits you are interested in, among other details. Some of these details may include, but are not limited to:

  • Where you are located
  • How much it would cost to rebuild your home
  • The materials used to construct your home
  • The age of your home
  • Your claims history
  • The claims history of the area you are located in

These, and other factors, will help to determine what you may pay for insurance premiums. At Cross Insurance, we work with a number of insurance carriers, which means more options to choose from when it comes to selecting a plan for your assets.



This article is for general informational purposes only and is not to be relied upon or used for any particular purpose. Cross Insurance shall not be held responsible in any way for, and specifically disclaims any liability arising out of or in any way connected to, reliance on or use of any of the information contained in this article. The information contained or referenced in this article is not intended to constitute and should not be considered legal, insurance, accounting or other professional advice, nor shall it serve as a substitute for the recipient obtaining such advice. The views expressed in this article are that of its author and do not necessarily represent the views of Cross Financial Corp. and its subsidiaries and affiliates (“Cross Insurance”) or Cross Insurance’s management or shareholders.


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