Why would my homeowners insurance policy premium increase in Brainerd, Minnesota?

From the minute you first drove by the Paul Bunyan statue in Brainerd, Minnesota, you knew that this was where you wanted to live. Sure there’s a little snow and cold weather, but 10,000 lakes, friendly people and a laid-back Midwestern lifestyle convinced you that this is where you want to live. But knowing that this is one of the safer communities in the nation, less prone to crime and most natural disasters than the national average, why the heck is your homeowners insurance premium going up?

Insurance premiums are affected first and foremost by risk. If your premium is going up, take a look at your risk situation. Has something changed in your area that puts your home more at risk? Have you or your neighbors been making more claims lately? Have you added a pool, or other feature that could lead to injury liability claims?

Cost of repair or replacement also factors into the cost of an insurance policy. When the costs of building materials rise (as is often the case after a mass disaster, like Hurricane Katrina), then premiums usually rise across the board. If there is a local disaster in Brainerd, such as a tornado, it can cause a temporary spike in building material costs, but it’s usually not enough to affect premiums. Adding value to your home also increases the cost of repair or replacement, so doing major remodeling projects might increase your premiums.

The best way to not get a nasty surprise on your homeowners insurance policy cost is to stay in communication with your insurance agent. They can keep you aware of changes that might increase your premiums and give you tips to reduce costs. In Minnesota, one great way to keep your insurance cost low is by calling us–as your independent agent, we can help you to find the right policy for you at the best possible rate..