{"id":2966,"date":"2023-10-12T16:59:23","date_gmt":"2023-10-12T16:59:23","guid":{"rendered":"https:\/\/www.gethomeinsurancequotes.com\/blog\/?p=2966"},"modified":"2023-10-12T16:59:25","modified_gmt":"2023-10-12T16:59:25","slug":"2023-homeowners-insurance-premium-are-going-up","status":"publish","type":"post","link":"https:\/\/www.gethomeinsurancequotes.com\/blog\/2023-homeowners-insurance-premium-are-going-up\/","title":{"rendered":"2023: Homeowners Insurance Premium Are Going Up"},"content":{"rendered":"\n
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Many homeowners have been notified lately that their homeowners insurance premium is going to be headed up. According to the Insurance Information Institute, higher insurance costs can be blamed on a variety of factors which include more expensive building materials<\/strong>, supply chain issues<\/strong> as well as continuing labor shortages<\/strong>.\u00a0<\/p>\n\n\n\n

Factors that increase home insurance costs<\/strong><\/h2>\n\n\n\n

A number of factors can be blamed for homeowners insurance premiums heading up for the last few years. The U.S. economy has not fully bounced back after the pandemic as labor shortages and supply chain issues make repairs to homes more expensive. As insurers must pay more to repair or rebuild homes, they pass those costs onto policyholders via larger premiums.<\/p>\n\n\n\n

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In addition to rising costs, climate change has led to more extreme weather which leads to rising catastrophe losses, all of which lead to higher insurance rates. “Much of the increase can be attributed to supply chain issues and labor shortages driving up the cost of home repairs and replacement costs, but also rising catastrophe losses related to extreme weather and population shifts into disaster-prone regions,” said Loretta L. Worters, spokesperson of the New York-based Insurance Information Institute, in a recent Fox Business article. <\/p>\n<\/blockquote>\n\n\n\n

This year alone there have been 23 confirmed weather and climate disaster in the U.S. which have resulted in over $1 billion in losses according to the NOAA.<\/p>\n\n\n\n

Why do home prices impact homeowners\u2019 insurance rates?  <\/strong><\/h2>\n\n\n\n

When it comes to homeowners insurance, the cost to rebuild your home <\/a>has a bigger impact on your premium than the real estate market value “Replacement cost refers to the amount it would cost to rebuild your home with construction materials of similar type and quality,” said Worters in the Fox Business article.\u00a0<\/p>\n\n\n\n

Insurers consider a number of factors when setting a premium. Some of the factors that insurers consider include:<\/p>\n\n\n\n