In Home Insurance Claims

One of the many questions that people ask regarding homeowners’ insurance is why the cost of their premiums continue to increase year after year despite remaining loyal to that company. What’s even more mystifying is why these rates keep going up when some individuals have never filed a claim against their policy. Here are three factors that could be influencing the cost of your homeowner’s insurance policy:

The age of your home – in many ways, your home is like your vehicle. The older it gets, the more attention it needs and just like your vehicle, your home starts to wear out, as it starts to ages. A home that is only 5 years old will have fewer if any problems than one that has been around a half century. For example, a 25-year old roof is going to have several problems that need to be addressed such as gaps, leaks, wood rot, and so on. Consequently, one of the more common causes of insurance claims is roof damage.

The Location of your home – you haven’t moved since you bought your home so you’re probably asking yourself that same question – “why does the cost of my policy keep increasing?” While you haven’t changed your location, a lot may have happened in your area. For instance, has the area become more prone to flooding over the past few years? Has there been an outbreak of sinkholes due to unseasonable rains? If these or other phenomenon have had an impact on the area you live in, this could easily affect the annual cost of your homeowner’s insurance policy.

The value of your home – every homeowner is thrilled to hear that their home has increased in value because they’ll enjoy a larger profit when the time comes to list it on the market and sell it. However, this can adversely affect the cost of your insurance premium just like the age and location of your home can. The cost of your policy is based on the replacement cost of your home. If the value of your home increases, then the replacement costs will most likely rise as well. As a result, your premium increases, on the insurance company.

Whether your home is completely destroyed or partially damaged in a disaster, you can hold your homeowner’s insurance company responsible for the coverage that they sold you to cover these losses. If you are having difficulties with your insurer and would like to discuss your case, please contact Korin Law, P.A., your home insurance lawyer. We’d be glad to help with the insurance requirements and assist you in maximizing the damage claim.

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