A question that we are frequently asked is… Why are home insurance premiums going up? There are many factors that can cause premiums to increase on an individual insurance policy; however, there are currently a variety of market factors that are causing prices to rise across the insurance industry. Typically, there is a gradual rise in home insurance premiums to keep pace with expected increases in the costs of labor and building materials over time. However, in the past few years, actual costs to replace and repair homes have skyrocketed due to higher material costs, higher labor costs, and supply chain delays. In addition, the frequency and severity of claims have increased due to severe weather, and fire and water damage has been more severe when claims occur.

In response, insurance companies across the industry are taking these factors into account when setting overall insurance rates as well as when calculating home reconstruction values. In some cases, this can result in a significant premium increase. If you are experiencing an increase, the above factors are most likely the cause.

It's understandable that an initial reaction may be to question if the company’s pricing is competitive. At Murphy Insurance, the good news is that we work with 10 different insurance companies that provide home insurance, which typically gives us several options when helping to find clients the best value. The first step is to calculate an updated home insurance replacement cost for your home, after which we can then quote your policy to determine the best option. And, when comparing options we will always be sure to make an apples-to-apples comparison focusing on balancing price and protection. Some carriers have unique aspects to the coverage they provide, so price may not be the only determining factor when choosing the best policy. Also, it's important to consider not just your home, but also your auto insurance because placing both together as a package with the same insurance company typically provides a significant discount. Reach out to us if you have any concerns about your policy and would like a competitive quote.