Hi, guys. My name is Amanda Smith. I’m the office manager at Cheryl Bowker’s Allstate office, and I’m here just to answer a quick, common question which is, “Why does my home insurance rate go up?”
Two main reasons why it may go up is because the replacement cost value has most likely gone up, which means that the cost of materials or labor has gone up. Remember the replacement cost is not the same as the market value. Replacement cost is how much is it going to cost to rebuild your house or fix what is wrong.
The other reason why it might have gone up is because discounts have fallen off or they’re tiering down. So if you have a new roof discount because you got a new roof this year, next year instead of it falling off, they’re tiering it down. So the discount is going to stay on. It’s just going to be less.
I hope this helps. If you have any questions, you can always give me a call at my office. 734-525-9610. Thank you. I hope you’re in good hands.