Why Home Insurance Rates Have Skyrocketed—and What You Can Do About It

If you’ve opened your home insurance renewal notice in the past couple of years, you may have felt a wave of sticker shock. You’re not alone. Across the country, homeowners are seeing premiums jump by double digits year after year. For some families, the cost of insuring their home has nearly doubled in less than five years.

So, what’s driving these increases—and what can you do about it?

Why Home Insurance Costs Are Rising

Several factors are converging to push premiums higher:

Higher construction costs: Inflation has significantly increased the cost of building materials and labor. Rebuilding a home after a loss costs more today than it did just a few years ago, which drives up coverage amounts and premiums.
Insurance company losses: Many insurers are paying out more in claims than they’re collecting in premiums. To stay solvent, they’ve raised rates or in some regions, pulled back entirely.
Reinsurance costs: Insurance companies themselves buy insurance (called reinsurance) to protect against catastrophic losses. Reinsurance premiums have also surged, and those costs get passed down to you.

Why Shopping Around Matters

It’s tempting to simply renew with your existing insurer, but in today’s environment, that could be a costly mistake. Here’s why comparing quotes is so important:

Rates vary widely: Different insurers weigh risks differently. One company may raise premiums significantly, while another still offers competitive rates for the same coverage.
Bundling opportunities: Some companies offer discounts for combining home and auto insurance.
Coverage options: Policies can differ in deductibles, exclusions, and endorsements (like flood or windstorm coverage). Comparing policies side by side helps you spot gaps and avoid surprises.
Independent brokers can help: A broker has access to multiple insurance companies and can often find options you wouldn’t come across on your own.

Don’t Just Look at Price

While saving money matters, the cheapest policy isn’t always the best. It’s critical to understand:

Coverage limits: Does the policy cover the full cost of rebuilding your home?
Deductibles: Are you comfortable with the out-of-pocket amount in case of a claim?
Exclusions: Is wind, hail, or flood damage covered—or excluded?

A slightly higher premium may be worth it if it means more comprehensive protection for your most valuable asset.

The Bottom Line

Home insurance costs have climbed sharply, but homeowners aren’t powerless. By shopping around, comparing coverage, and working with a trusted broker, you can often find significant savings without sacrificing protection.

At Heritage Wealth Management, we regularly remind clients that protecting your home is just as important as growing your investments. If you’re feeling the sting of higher premiums, we’re happy to review your current coverage and any proposed coverage to ensure your home—and your financial security—are well protected.