Why do Fire and Homeowner insurance premiums change?

Fire and Homeowner insurance premiums change for the same reasons that the price of other goods and services you buy changes

The cost of the goods and services that insurance companies must buy affect the prices the companies charge. Costs affecting the ultimate price of fire and homeowner insurance are:

	Costs of building materials and labor
	Costs to replace appliances, furnishings, etc.
	Costs to adjust claims
	Inflation

Although insurance companies can't directly control these costs, we regularly monitor them to see how they are affecting the costs of the claims we pay. As they change, fire and homeowner premiums must be adjusted. These costs can affect your insurance premium whether or not you have had a loss and filed a claim.

Sometimes the amount of homeowner insurance coverage changes

Replacement cost is the cost to build your home in its current location, from the ground up, with the going rate for construction taken into consideration. It does not mean the amount you paid for your hError 500: com.farmers.farmcomm.navigation.DynamicNavigation (initialization failure)