Why are North Vancouver Home Insurance Rates Rising This Year?
by adminSome Vancouver residents may be in for a surprise this year when it comes to renewing their home insurance policies. While insurance premiums for detached homes have been relatively stable, many homeowners are feeling a little sticker shock when it comes to renewing their plans this year.
The insurance crisis facing condo owners has been addressed at length, with rapidly climbing rates leaving many owners feeling the pinch. However, there is another market that can expect to see increases this year which has largely been ignored – owners of detached homes.
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In an environment still reeling from the global pandemic that has yet to fully subside, increased home insurance premiums are just another cost that many homeowners are not equipped to deal with. So why exactly are rates increasing and how can an insurance broker help you responsibly keep premiums affordable, without sacrificing your coverage?
Why Are Premiums Going Up?
There isn’t a single issue that is influencing the rise in insurance premiums, but rather a combination of factors:
1. Undervalued Homes
Sometimes an increase in premiums can simply be attributed to the fact that in previous years, your home was underinsured. Underinsurance occurs when the actual cost of replacing your home and belongings is far greater than the amount for which you are covered.
2. Substantial Improvements
While we were all spending more time in our homes this past year, many of us undertook large home improvements. If you put in a new kitchen, redid a bathroom, or added an addition, these improvements need to be included in your home insurance and will influence your premiums. If not, you may not be sufficiently covered to cover the cost of replacing these renovations.
3. Higher Assessment
As home values in your area increase, so does the value of your home. This is important because, in the event of loss, it may increase the cost of potential claims to the insurance company. If your home’s assessed value has increased significantly, you could see a rise in your insurance premiums to ensure that your replacement value remains aligned with your assessed value.
4. Changing Climate Conditions
Climate change and extreme weather events have led to more frequent and more costly insurance claims, both of which are having an effect on home insurance premiums, as insurance companies need to compensate for the increase in insurance payouts.
What Can You Do To Keep Rates Low?
Shopping around for an insurance policy, rather than simply accepting rate increases as they come, is the best way to make your you are getting the coverage you need at a price you can afford. Working with an insurance broker in North Vancouver is the easiest way to evaluate your options and choose both an insurer and coverage option that best protect your investment. An insurance broker will:
- Help you determine the type and amount of insurance coverage you need, based on your unique requirements
- Advise you of any discounts you may qualify for
- Provide you with quotes from multiple insurers
- Help you evaluate the options and answer questions regarding the differences in coverage
- Take care of all the paperwork
Also Read: Choosing the Right Home Insurance Provider in Vancouver
No matter where you are currently insured, you are not locked into a particular policy or company. An insurance broker can present alternatives that you may not have been aware of, allowing you to choose the best coverage and the best price. You can’t do much to influence the home insurance market, but you can choose to work with with an insurance broker and make the best out of a challenging situation.