First, you need to know that home insurance rates are constantly changing. Just because you had a great rate last year doesn't mean your rates will stay the same. In fact, many home insurance companies revise rates yearly. Some by just a little, and others by quite a bit. Insurance companies depend on many factors when setting rates, some of which are within your control and others that aren't. Below, we outline some of the most common reasons your home insurance rates might increase. Rising Home Values If you live in an area where home values has been rising, your home insurance rates will likely increase as well. That's because insurance companies insure your home for its replacement cost, which is the amount it would take to rebuild your home if it were completely destroyed. As home values increase, so do the replacement costs and your home insurance rates. If you live in an area where home values have been stagnant or declining, you might actually see a decrease in your home insurance rates. Bad Weather Colorado is often frequented by severe thunderstorms, tornadoes, and hailstorms. In fact, Colorado is ranked second of all states with the highest hailstorms claim rate. When bad weather is projected, insurance companies will often increase rates in anticipation of an influx of claims. So, if you live in an area prone to bad weather, you can expect your rates to go up when severe weather is on the horizon. There isn't much you can do to control the weather, but you can take steps to protect your home from severe weather damage. For example, you can have your home inspected for hail damage and make any necessary repairs. You can also install hail-resistant roofing, which could lead to a discount on your home insurance rates. Increased Crime Rate If you've made additions or renovations to your home, your home insurance rates will increase. That's because a larger home is more expensive to rebuild than a smaller one and carries a higher risk. Even something as simple as adding another bathroom can increase your rates. Similarly, adding a new roof, deck, or pool will also lead to higher rates. Your Home is Getting Bigger If you've made additions or renovations to your home, your home insurance rates will increase. That's because a larger home is more expensive to rebuild than a smaller one and carries a higher risk. Even something as simple as adding another bathroom can increase your rates. Similarly, adding a new roof, deck, or pool will also lead to higher rates. Aging Infrastructure If your home's infrastructure is aging, your home insurance rates will increase. That's because older homes are more likely to have electrical, plumbing, and heating/cooling problems. Additionally, older homes are more likely to have asbestos, which is a hazardous material that can lead to expensive repairs. Credit Score Your credit score is one of the most important factors in determining your home insurance rates. Insurance companies use credit scores to determine how likely you are to file a claim. Generally, the higher your credit score, the lower your rates will be. So, if your credit score has decreased since you last shopped for home insurance, you can expect your rates to increase. You've Been Filing So Many Claims If you've filed many claims, your home insurance rates will increase. That's because insurance companies see frequent claim filers as high-risk customers. This is the case even if you have a valid claim. For example, if a severe storm has damaged your home, you'll likely have to pay a higher premium even though the damage wasn't your fault. You've Added Some Exotic Animals or Dog Breeds Exotic animals that may raise your Colorado home insurance rates include alligators, snakes, monkeys, and other non-traditional pets. This is because these animals can pose a liability risk if they injure someone. Additionally, some dog breeds are considered high-risk and may lead to higher rates. These breeds include Pit Bulls, Rottweilers, Dobermans, German Shepherds, and Chow Chows. You've Started Operating a Business from Home If you've filed many claims, your home insurance rates will increase. That's because insurance companies see frequent claim filers as high-risk customers. This is the case even if you have a valid claim. For example, if a severe storm has damaged your home, you'll likely have to pay a higher premium even though the damage wasn't your fault. How to Lower Your Home Insurance Rates You can do a few things to lower your home insurance rates. First, you can shop around and compare rates from different insurers. Insurance companies use different criteria to determine rates, so you may be able to find a better deal by shopping around. You can also try to negotiate a lower rate with your current insurer. If you've been with the same company for a while, they may be willing to give you a discount. Additionally, you can try to offset some of the risk factors that lead to higher rates. For example, you can install a security system or get a dog to deter burglars. You can also improve your credit score or pay off any outstanding debts. These factors will show insurers that you're a low-risk customer and may lead to lower rates. Finally, you can raise your deductible . This will lower your premiums, but you'll have to pay more out of pocket if you do have to file a claim. Have Questions? Compare Home Insurance Quotes If you have any questions about home insurance, our experts can help. We can answer your questions and help you compare quotes from top insurers. Whether you’re in our neighborhood of Green Valley Ranch, or anywhere else in the Colorado, we’re here to assist with all your personal insurance needs. Find us on the web at www.badgerinsuranceadvisors.com or call us at 303-359-1799. Kevin Volz – Agency Principal Badger Insurance Advisors

Like most other goods and services, insurance is not immune to the pressure of inflation. When determining insurance premiums, insurance companies look at many factors including industry trends, number of claims and costs to repair vehicles and homes. Specifically, home building materials and auto repair have increased, chip shortages have pressured supply chains and pricing on new vehicles, and a labor shortage persists. Let’s not forget natural disasters and our litigious culture! Add these ingredients together, and you have a recipe for higher prices better known as “Insurance Inflation”. Digging a little deeper… Since the pandemic, driving behavior has become riskier. I remember the lockdown days when no one was on the road. We were driving less, fewer incidents were being reported, and insurers were even providing rebates for limited driving activity. Those days are now long past…I know I’m getting older and becoming the “get off my lawn guy”, but driving behavior truly seems more aggressive. "People picked up some risky habits," says Sean Kevelighan, CEO of the Insurance Information Institute . "And we haven't seen those risky habits go away, even though we have more people on the road." According to the National Highway Traffic Safety Administration , the number of fatal auto accidents jumped sharply in late 2020 and early 2021. Auto insurance costs jumped more than 19% during the year ending in August, while overall inflation was 3.7%, according to the Bureau of Labor Statistics . (see image above) Gathering my Google thoughts recently lead me to this local headline: “ Coloradans report dramatic spikes in home insurance premiums heading into 2024 .” A March 2023 study conducted by the state’s Division of Insurance found that between January 2019 and October 2022, the average homeowner premium was up nearly 52%. My automated response these days to insurance customers about homeowners rates has been “we’re seeing 30-60% increases for everyone statewide”. The problem is even worse in other states like California/Florida/Louisiana where insurers have decided to no longer offer coverage in many cases. My dad lives in Florida, he recently asked “What am I supposed to do? My rate just doubled!” Other than moving to another low-risk state, there are not many clear-cut answers. Higher insurance rates may be here to stay…what can I do about it? -Ask your insurer about discounts for which you may qualify. -Claim frequency will also lead to rate increases. Before filing that next claim, ask yourself “is this worth filing? Will the claim payout be well beyond my deductible? -Explore payment options like automatic EFT payments or paying for the year in full. -Increase your deductible. -Consider a bundle of insurance coverages with one company. -Maintain a good driving record along with healthy credit (insurance companies use their own scoring model) and participate in a safe driving app offered by most insurers. -Reduce liability and coverage limits. If your net worth is minimal and you don’t have high take home pay, there is a strong argument not to have $500,000+ of liability coverage. Attorneys most likely will not come after you if you have no money. -One of the biggest ways to save is by buying an older car or a new model with a high safety rating. Do your homework, research insurance costs before purchasing your next vehicle. -Shop around, not every 6 months, but at least every other year! If you’ve been with the same company for a long time, another company will probably give you a decent offer for loyalty. -Ask about the mileage your insurer has on file. If you no longer drive as much as you used to, companies often will lower your rates based on limited mileage. Resources: http://www.rmiia.org/auto/Colorados_insurance_marketplace.asp https://www.finn.com/en-US/campaign/the-state-insurance-report https://www.apci.org/media/news-releases/release/76883/ At Badger Insurance Advisors, we understand that “stuff” happens! (that includes INFLATION). Whether you’re in our neighborhood of Aurora, or anywhere else in Colorado, we’re here to assist with all your personal insurance needs. Find us on the web at www.badgerinsuranceadvisors.com or call/text us at 303-359-1799. Kevin Volz – Agency Principal Badger Insurance Advisors

Were you aware??? -Floods are the number one disaster in the United States. -More than 20% of all flood insurance claims come from areas in low to moderate-risk flood zones. -Just one inch of water can cause large financial losses. -Almost everyone lives or works near a flood zone. -Standard home and business insurance policies typically do not cover flood insurance. As an insurance agent primarily serving Colorado, flood insurance is a topic not discussed very often. General reasoning is that we live in an arid climate with relatively low annual precipitation…why spend money on something that has a low probability of occurrence? Well, tell that to the residents of Louisville, Colorado or other mountain towns that have been devastated by wildfires, statistically low occurrence probability events. This brings us to May 2023! Historically, May is the wettest month in Colorado with an average precipitation of 2.5 inches. As of May 17, 2023, Denver International Airport recorded 4.7 inches, almost double the average, and officially cracks the top 10 wettest May’s ever. If you’re curious, the wettest May in Colorado happened in 1876, over 8.5 inches…crazy by comparison! Since May 17 th , I’ve spent a majority of my days on the phone with customers discussing coverages and limitations of homeowners policies, and of course a fair amount of time speaking with claims departments. I thought I’d take a moment to clarify flood insurance… Do I need flood insurance? Just because you haven't experienced a flood in the past, doesn't mean you won't in the future. The reality is a flood can happen to anyone, anywhere, at any time. Common flood causes include rainfall, river-flow, topography, and changes to the landscape due to building and development. Here is a link to help you understand flood risk in your area: https://msc.fema.gov/portal/home Is flood insurance mandatory? Often, homes and businesses in high-risk flood zones are required to have home or business flood insurance coverage. Don’t wait until it’s too late… Typically, there's a 30-day waiting period after a flood insurance policy is purchased before it becomes effective. Understanding that floods are one of the top natural disasters in the country, it is encouraged that you review your flood insurance options. What is not covered by flood insurance? Like most insurance policies, there are usually specific coverage exclusions and limitations. Examples of uncovered or excluded losses: -Damage caused by moisture, mildew, or mold that could have been avoided by the property owner. -Additional living expenses such as temporary housing. -Most self-propelled vehicles such as cars, including their parts (auto insurance with comprehensive coverage will cover flood damage to vehicles). -Property and belongings outside of a building such as trees, plants, shrubs, wells, septic systems, walks, decks, patios, fences, seawalls, hot tubs, and swimming pools. -Financial losses such as business interruption or loss of use of insured property. What does flood insurance cover? The NFIP (National Flood Insurance Program) offers two types of flood insurance — building and contents — each with a separate deductible. A deductible is the amount of a claim you’re responsible for paying. Building coverage ($250,000 limit) Building coverage is insurance for the structure of your home (akin to dwelling coverage on a homeowners policy). This pays for flood damage to things like: Electrical and plumbing systems, water heaters, furnaces, foundation walls, built-in appliances, cabinets, permanently installed carpets, detached garages, fuel and well water tanks, solar energy equipment, and window blinds. Contents coverage ($100,000 limit) Similar to personal property coverage on a homeowners or renters policy, contents coverage pays for damage to your “stuff”. Typically, this includes clothing, furniture, electronics, curtains, and appliances. The NFIP covers your belongings on an “actual cash value” basis. This means that if you file a flood insurance claim, your payout will reflect what your belongings were worth at the time of the flood, not a “replacement cost”. Is there flood insurance with limits beyond what the NFIP offers? Yes, broader coverage and higher limits are available via private flood insurance policies. Further resources: Flood Insurance | DORA Division of Insurance (colorado.gov) At Badger Insurance Advisors, we understand that “stuff” happens! Whether you’re in our neighborhood of Aurora, or anywhere else in Colorado, we’re here to assist with all your personal insurance needs. Find us on the web at www.badgerinsuranceadvisors.com or call us at 303-359-1799. Kevin Volz – Agency Principal Badger Insurance Advisors

Whether it's baseball, a legal precedent, or insurance claims..."3 strikes" are not good!