Our home insurance rate jumped from just $650 last year to $1,100 this year, which is a 69% jump.
Yes, nearly SEVENTY PERCENT from the previous bill we received. There was no note or reasoning attached to the bill (I know they don’t do that, but it would be nice), all it stated was the new rate.
I know others pay rates much higher than what we’re paying, and I guess we’ve been lucky.
However, considering the fact that we’ve never filed a claim since we bought our home 5 years ago and that we live in a cheap home, such a big jump in our annual home insurance bill definitely stood out to me.
So, I did some research.
According to ValuePenguin, the average annual home insurance bill in Missouri is $1,022.
This means our new home insurance bill isn’t too off, but considering our home is significantly below the average home value in Missouri (our home is 40% cheaper than the average value of a Missouri home stated by Realtor.com), it is still a little odd to me that we are paying so much more than others in the same area.
Also, when we first bought our home, the average home insurance bill in our zip code was only $450.
What causes home insurance bills to jump or be higher than average?
Around 1.5 years ago, we had two tornadoes in our subdivision.
One was at the beginning of our subdivision, and the other was at the end of it.
It was a freak occurrence and very scary. I’m assuming this is what caused our home insurance to go up. A few houses have been completely rebuilt and they are still working on one or two other homes.
There are other reasons why home insurance bills may be higher as well:
- Do you have dogs? We have two dogs, but neither of them are on the list of “bad dogs” that home insurance companies don’t like. It is sad, but certain breeds will lead to higher home insurance.
- Home “additions.” If you have any additions to your home such as a pool or a trampoline, they will most likely add to your home insurance bill.
- Weather. Weather can be a big reason for why your home insurance is higher than usual. If there is the possibility of hurricanes, tornadoes, earthquakes, or other disasters, then your home insurance may be higher than the average.
- How old is everything? When was the last time your plumbing, electrical system, roof, and so on were replaced? If nothing has been replaced in a long time, then you may be looking at higher home insurance rates.