Three Factors That Cause Increase to Home Insurance Policy

​We often have a tight budget when talking about monthly bills; add up the premium home insurance that we are paying and it will inevitably cause us stress! Therefore, today is the right time to know the primary reasons for the increase in the home insurance policy. This way, we can be proactive to avoid it.

Three Factors that Increases the Value of Your Coverage
Your coverage value will increase based on any of the three factors. These are inflation, the overall cost of reconstruction, and thorough home inspection. Each factor is explained below:

• Inflation. Although you have not noticed it yet, your contract states that your house is protected from the cost of inflation. In this case, the same event causes the annual increase in your coverage by a percentage. In the first years, the hike may not be drastic, but this is not the case after five and more years. What we suggest is that you check your policy amount now to assure that it is not overinflated. 
  
  
• Reconstruction. Although your house is newly constructed, the evaluator from the insurance company still placed a large amount on your reconstruction cost. They use a standard tool that computes the reconstruction cost according to the house condition. If the broker and evaluator determined that the insured dwelling cost a penny, you would be having an increased amount of coverage. 
  
  
• Inspection. For a home inspection, an evaluator usually comes to your home to validate the information you provided. This same event can also be a source of the increase in your policy. The evaluator will assess and recompute the cost of reconstruction that is undoubtedly affected by your house's age and current state.

Ways to Negotiate the Insured Value
After finding out the increase in your coverage amount, you can still negotiate and lower down the value that is presented to you. Here are some ways to do that:

• Recheck the insurance company’s calculation
• Look for other company options
• Hire an independent appraiser

Your dwelling is the same place that protects you and your family from danger and natural catastrophes. Hence, it is important to make sure that you are adequately insured! Happy shopping!

At Infanger Insurance Inc, we do our best in making sure that our clients are well-protected with affordable and comprehensive policies. We make sure to go the extra mile to help you with your needs. To learn more about how we can help you, please contact our agency at (208) 557-8157 or Click Here to request a free quote.