Why Are Home Insurance Rates Going Up?
If you’ve noticed your home insurance premiums skyrocketing—or worse, your policy being non-renewed—you’re not alone. The home insurance market is in a hard market cycle, meaning rates are increasing, and insurers are tightening their underwriting standards. Why? Several reasons:
- Natural Disasters – Wildfires, hurricanes, and floods are happening more frequently, leading to massive insurance payouts.
- Reinsurance Costs – Insurance companies buy their own insurance (called reinsurance), and those costs have soared.
- Inflation and Construction Costs – The price to rebuild homes has gone up, meaning insurance companies have to adjust coverage limits and premiums.
- Increased Claim Frequency and Severity – More claims and higher repair costs mean insurers are paying out more than before.
What This Means for Homeowners
A hard market means less flexibility from insurance companies. Policies that were once easy to obtain may now require additional inspections, stricter underwriting, or higher deductibles. Some homeowners are even receiving non-renewal notices, forcing them to scramble for new coverage.
Steps to Take if You Get a Non-Renewal Notice
- Don’t panic. You still have options.
- Call an independent insurance agent. Unlike captive agents (who only sell one company’s policies), independent agents can shop multiple insurers for the best fit.
- Make your home more insurable. Some insurers may require fire mitigation efforts, a newer roof, or upgraded electrical systems to continue coverage.
- Consider increasing your deductible. A higher deductible can make you a more attractive customer to insurers.
- Look into state-run or high-risk pools. These are last-resort options but can ensure you have some level of protection.
How to Get the Best Home Insurance Rate in a Hard Market
Even if you haven’t received a non-renewal, now is the time to review your policy and look for savings. Here’s what you can do:
- Bundle Home and Auto – Many companies offer discounts when you bundle multiple policies.
- Improve Your Home’s Safety – Installing security systems, upgrading your roof, and clearing brush can make you eligible for discounts.
- Ask About Discounts – Many insurers offer credits for claims-free history, senior status, or smart home devices.
- Compare Quotes – Rates vary widely between insurers. An independent agent can help you find the best value.
The Importance of Annual Reviews
Insurance is not a “set it and forget it” product—especially in a hard market. Annual reviews with your agent ensure that you:
- Have enough coverage to rebuild at today’s costs.
- Aren’t overpaying for unnecessary add-ons.
- Are taking advantage of every available discount.
The Bottom Line
The home insurance market is shifting, and homeowners need to be proactive to maintain coverage and keep costs in check. Whether you’re facing a non-renewal or just want to ensure you’re getting the best deal, working with an experienced independent insurance agent is the best way to navigate this hard market.
Need Help Finding the Right Home Insurance?
At Bancorp Insurance, we specialize in helping homeowners secure coverage—even in a tough market. Contact us today for a complimentary policy review and see how we can help you protect what matters most.
Call us at (541) 536-1726 or schedule an appointment: www.bancorpinsurance.com
Bancorp’s insurance agents are available to provide you with a free review and consultation. Contact Us – Bancorp Insurance Call 800-452-6826
