Home insurance rates in 2023 went up about 25% in Arizona, in 2024 we have seen a jump of up to 40% increase in rates for homeowners insurance. There are a lot of reasons that this has been happening, and in todays’ blog we will go through a few of them.
First of all, about 3 years ago, the price of building materials practically doubled overnight. Before the increase, we would insure homes for about $120 per square foot, now we start at insuring homes at about $165 per square foot. When we first started in insurance about 14 years ago we were insuring homes for $100 per square foot. This is a direct reason for why your premiums are more expensive, they are insuring your home for more money. If stuff costs more to build, they have to insure your home for more money, this means your premiums are going to rise.
One of the leading causes for rising premiums, excessive claims. We all know that your insurance is there to help and protect you financially, but sometimes it can become too much. Your insurance premium is not a maintenance plan. Let's say that your roof is 28 yrs old and beginning to leak. The responsible thing to do is to replace the roof on your own dime, as it is your home, and deal with it yourself. However, many people file claims, and whether they are successful or not, it raises everyone's rates.
Unfortunately, there is no end in sight with rate increases, specifically homeowners policies. However, by giving AZ Insurance Team a call today we can help you find your perfect policy. Our phones are always open at (480) 535 5709!!
Independent insurance brokerage located in Tempe, AZ. We offer auto insurance, homeowners insurance, life insurance, renters insurance, commercial insurance…
Disclaimer: Coverage will vary on state, insurance company, and type of policy.
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