Home prices are down but insurance prices are up!

It’s no secret, your home value is probably half of what it was five years ago, but you may wonder why your insurance premium is still going up. The cost to rebuild and/ or repair your home, supplies, labor, etc. have not gone down, according to industry experts. These components are what insurance premiums are based upon.  In fact, insurance premiums will only take the structure and liability exposure into consideration – which maybe ticking upwards based on a rise in catastrophes predicted.

“The price of homeowners’ insurance is based on the cost to repair or rebuild your home. The price of a home is based on the market value of that home and the land upon which it sits,” Robert Hartwig stated, president of the Insurance Information Institute. He also mentioned that even though the recession has been hard on the construction industry, it still hasn’t caused a major decrease in materials and labor.

In this crazy upside down market we’ve been in, some say it’s even possible for the cost to rebuild your home is actually more than the resell price.

Many of us are struggling to keep up with our bills and found that the only way to lower our premiums is to take a chance and raise our deductible. At Zeiler Insurance we regularly shop your insurance coverages to make sure your are getting the best bang for your buck!