Homeowner insurance premiums are on the rise. There was a time when the home policy was the best and least expensive of all the property and casualty insurances. The homeowner policy is under attack. There are many more exposures than ever before. Toxic mold has caused some real problems in some areas of the country and caused the premiums to rise dramatically. Some states exclude coverage for toxic mold entirely. Natural disasters have had an affect on rates. The recent barrage of hurricanes has caused supply shortages and these shortages increase the demand and the price for repairs. These expenses are passed on to the policyholders eventually.

The rates are calculated by insurance company fiduciaries. They look at the cost of claims and the cost of doing business and compare it to the company revenue to come up with your rate. You have no control over how the companies derive their rates. They have to get approval from their state insurance departments before setting rates or increases. They cannot arbitrarily come up with a figure.

What Can You Do?

1. Understand Your Policy