Many Texans have noticed that their home insurance premiums are rising in 2022. Frisco Insurance would like to underline some valid reasons why this is happening and a couple of actions your family can take to lower costs. Our mission has never changed and includes all of the following:
- Protect your family’s home with trustworthy, quality insurance.
- Keep you abreast of changing events in the insurance industry.
- Provide helpful tips related to your insurance.
We know many families are on a fixed budget and spend their money wisely. Folks also know they must protect their valuable investment with Frisco home insurance. This important action provides financial security for the future and safety from the elements.
Here are four major reasons why your home insurance in Frisco may be increasing in 2022:
1. Low Interest Rate Environment
Let us first stipulate that interest rates can change rapidly, so this reason won’t be accurate in some future time frames. However, one major reason that insurance premiums have increased in recent times is low interest rates.
Frisco Insurance (like all insurance companies) invests the money from insurance premiums after we pay out all our customers’ insurance claims. We do that so that we’ll always be around to help our customers in times of need. We think about our future financial security just like your family does! Insurance companies tend to make more money on their interest bearing accounts when interest rates are relatively higher. That has not been the case recently.
The takeaway is that insurance companies often have to raise their premiums in this type of macroeconomic environment to stay strong and reliable.
2. Severe Storms on the Rise
We know that most Texans are familiar with severe storm activity. That’s one more reason for our customers to choose Frisco Insurance to protect their most valuable asset: their home. All of the following severe weather events can threaten your roof, windows and the structural integrity of your home:
- Hail
- Hurricanes
- Tornadoes
- Windstorms
Many of our Texas customers live close to lakes, rivers or the Gulf of Mexico. They’ve seen unforgettable storm damage occur to homes over long periods of time. Clearly, this is a tragic and heartfelt event but quality insurance makes it less severe.
The number of heavy storm events has increased in recent years and has affected home insurance premiums. This is only logical as there are significantly more claims to cover and homes to protect.
3. The Cost of Lumber and Copper
You may have noticed that cost of building materials has increased significantly within the last year. We are referring to:
- Softwood and Hardwood Lumber
- Copper
- Plastics
- Steel
Building material shortages are at their worst since 1990 according to the National Association of Home Builders (NAHB). And, according to the U.S. Bureau of Labor Statistics, lumber and steel prices have both risen more than 65% over recent time frames. They also state that lumber may even be close to a 90% increase, depending on what specific (and recent) time frame you’re looking at.
4. Rising Inflation
Inflation has been a hot topic in the news. CPI numbers were reported in January of 2022 at around 7%. This was alarming to many people who suspected the CPI (consumer price index) was far lower. According to some macroeconomic experts, the 7% figure might even be lower than the actual current rate of inflation.
Rising inflation has an impact on insurance premiums. Although this is not specific to the state of Texas, it’s noteworthy as it pertains to your home insurance in Frisco. There’s some chance that inflation will increase further this year and we know our customers are concerned about this. We, at Frisco Insurance, will do everything we can to insulate you from this if it does occur.
Help with Your Insurance Premiums
Now that we’ve listed some causes for the recent increase in insurance premiums, what can your family do about it? Here are some effective actions you can take to lower your valuable Frisco home insurance in the future:
- Bundle different types of insurance (such as auto insurance).
- Raise your deductible (we can help you with this decision).
- Install a home alarm system for increased protection.
Frisco Insurance is always coming up with new ways to protect your assets at a discount. Our customers feel it’s their responsibility to provide a safe environment for their family at a reasonable cost.
Contact Us Today
If you’d like further help with different ways to protect your assets at the best possible cost, we’re happy to answer your questions.
Please give us a call, anytime, at 214-705-3482.
Frisco Insurance looks forward to providing quality home insurance for your family and giving you valuable tips each month!
