Why is My Homeowners Insurance Premium Rising?
Understand Why Your Premium is on the Rise
As a homeowner, you may have noticed that your homeowners insurance in Calimesa, CA is on the rise. Your agent re-evaluates your policy every year, often resulting in a premium increase. But you’ve been with the same insurer for a while, so shouldn’t you be rewarded for your loyalty? Unfortunately, that’s not always how insurance works. Take a look at just a few reasons you could be experiencing higher premiums.
- Increased Fire Risk
California is no stranger to wildfires. Over recent years, fire-related damages have reached historic heights, and the temperatures are due to rise and summer droughts are forecast to lengthen. Insurance companies may choose to back out of existing policies, choose not to renew, or are hiking up prices in response. If the risk of wildfires increases, so does the chance of you filing a claim. As a result, you may see your premiums increase, even if you haven’t changed your policy.
- Credit Score
All insurance policies pull your credit score for evaluation. Insurers have found that those with a higher credit score typically file fewer home insurance claims than those with poor credit. As a result, insurance premiums will be higher for those with a poor credit score. If you have noticed a dip in your score, your premium may have shot up as a result. Work on retaining a good or excellent credit score to keep your cost of insurance low.
- Property Changes
You may notice an increase in your yearly premium if your property undergoes any changes in the prior year. Adding a swimming pool, trampoline or pet to the property can increase the likelihood of an injury occurring, which increases your premium in turn.
Finding an affordable policy doesn’t have to be difficult. For all of your homeowners insurance needs, talk to the professionals at Little & Sons Insurance Services, serving Banning and neighboring cities in California.