Home Insurance FAQs : Farmers Insurance

Home Insurance FAQ

Answers to the home insurance questions we hear most. 

Q: I just received my renewal notice for my homeowners insurance and I’m confused. My annual premium went up because the coverage on my home (listed under Coverage A) was increased. Why?

A: I’m glad you asked because this is an important topic for homeowners. The Coverage A dwelling limit represents the total amount your insurer will pay out to replace your home if it were totally destroyed. Say a person has a $100,000 Coverage A dwelling limit; that means there is up to $100,000 available to rebuild their home in the event of a loss. 

When a homeowners policy is due for renewal, insurers may apply a rate of inflation to account for the increased costs of labor and materials.

-Russ Lee, Chief Underwriting Officer at Farmers Insurance®

Read more about why home premiums can rise

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