We know when homeowners purchase a new home, a lot of careful planning, thought, time, and energy go into it. Purchasing a home is a huge investment. For many, it is the biggest investment they will ever make.

One thing that home owners must factor into their home buying decision is homeowners insurance. We know when homeowners look at the financial cost of being insured and the risks their home may be susceptible to, finding the right coverage at the right price can be hard to determine.

This is where our agents come in. It is smart to talk with an insurance agent when purchasing your home to determine what kind of coverage is right for you and hopefully, get that coverage for a good price.

Speaking of price, many homeowners find themselves surprised when the cost of their home insurance in Springfield, Ohio changes after a year or two. You may be wondering, is this normal? Why did my home insurance premium go up?

There are a multitude of reasons for your premium to increase and it is very normal. In fact, a rise in premium costs should be factored into your home buying or yearly budget for those who really like to plan ahead.

Let’s look at some of the most common reasons your premium may increase.

Filing a claim

You have insurance to help cover major expenses when the unexpected happens to your home. If you are ever in the situation where the unexpected does happen, you will be glad you’re covered. Filing a claim, however, may raise your insurance rates.

When considering filing a claim, how can you know if it will raise your rates? That’s where our insurance agents at Link-Hellmuth can help advise you. Claims range from small (broken window) to large (home remodel after fire) and how your rates are affected will depend on the cost of your claim. If you’re thinking about filing a small claim, that won’t cost much more than your deductible, it could be smart just to pay it out-of-pocket.

Physical Property Changes

When you physically change your home, such as adding an addition or really anything that increases its value, it could result in increased insurance premiums. A more valuable house means it will cost more to insure.

Even external changes to your property like adding a pool, trampoline or swing set can increase your costs because you now have increased liability.

Construction Costs

Much of your insurance costs are calculated by what it would cost to rebuild your home. For that reason, when construction costs in your area rise your insurance premium may rise. This could be because of labor shortages, costs of goods, etc…


Insurance rates often have to rise as inflation rises, this is because the cost of each item within your home is greater this year than it was last year, making it more expensive to insure. Inflation can also affect the rebuild cost of your home discussed above.

The insurance industry references the Consumer Price Index to measure inflation and adjusts rates accordingly. It’s one big reason why property owners find that their home insurance keeps going up year after year, even if nothing’s changed on their property.

Keeping Your Costs Low

There are many ways you can keep the cost of insuring your home low. From bundling insurance coverage to safety precautions, our independent agents at Link-Hellmuth Insurance can help you find ways to save!