The answer is there could be a few things at work here
When you review your homeowners insurance the best Kenner homeowners insurance broker you can start to uncover the reason(s) you received a rate increase on your renewal
When you initially get a rate increase, your first reaction is
“I want to switch to another insurance company”
Before you jump ship and move your homeowners insurance
you should consider a few factors
INFLATION GUARD ENDORSEMENT
All homeowners policies have an inflation guard endorsement built into the policy
The increase could be a standard 1-3% increase of all coverage amounts at renewal
Each year at renewal your insurance coverage amounts will increase by the % of the inflation guard endorsement and as a result with increased insurance coverage your rate goes up
What is an inflation guard endorsement?
The reason this endorsement exists is an attempt to keep up with rising home construction costs
The insured value of your home is based on the cost it takes you to hire a contractor to rebuild your house after a claim
It has nothing to do with property values going up or down in your neighborhood and is never based on recent home sales
The cost of a 2×4 piece of lumber has no bearing on your neighborhood resale value but the cost of a 2×4 has almost tripled in the last year
Building materials go up in value and so goes the cost to rebuild your house
Can I remove the inflation guard endorsement?
No you can’t
But you and your insurance broker can determine the estimated replacement cost of your home and if the cost to rebuild your home is less than the insured value on your Kenner homeowners insurance policy you can request the insurance company lower the insured value
If you own a 2000 square foot house and your insured value has increased to 350,000 due to an inflation guard endorsement,
it may be time to run a replacement cost estimator or have a home builder give you an indication of the current replacement cost of your house
YOU RECEIVED A RATE INCREASE
All insurance companies will take a rate increase at some time
As a result of one of the most active Gulf Coast hurricane seasons in recent memory insurance companies will be taking rate increases as high as 20% in some zip codes
If over 25%, something might be wrong
You home insurance renewal should never jump 25% at renewal
If it did there are some possibilities at work here
- your policy was initially rated incorrectly
- your insured value may have been too low at inception and the company is raising the insured value to meet the current replacement cost of your house
- the company is losing money in your zip code and either did not properly rate your area or they are taking heavy losses and need to take action
- they are trying to get out of Kenner and either leave your zip code or leave Louisiana
- something happened to your credit score since policy inception and the company ran your credit again and it went up
Kenner Homeowners Insurance discounts you may qualify for
Did you get a new roof?
Did you purchase your auto and umbrella with the insurance agency?
Did you purchase a monitored burglar and fire alarm?
Did you purchase your flood insurance with your current insurance agency?
New discounts are being introduced by homeowners insurance company every day
If you are ready to talk with the best Kenner insurance broker to deliver low rates from A rated homeowners insurance complete complete the form below