Home insurance is a necessity for most homeowners. If you have a mortgage, insurance will be mandatory until you own the home free and clear from the mortgage lender. While some of the premium increases are likely to happen over the years, you do have some control over what you pay. Here are four reasons why your home insurance could go up at your next renewal period.

Your home insurance will provide you with protection if your home were to suffer from a total loss. This includes a house fire and certain natural disasters that can cause the need to completely rebuild your home. The cost of your home insurance is based on how much money it will cost to rebuild your home from scratch, and it accounts for the increased cost of materials due to inflation.

Expect that your insurance provider will gradually increase your home's value each year to account for inflation. While your home may be appraised at one value today, 30 years from now it could be worth a completely different value. If you don’t account for inflation, then you could run into a problem where you don’t have enough money to rebuild your home after a disaster.

Inflation adjustments are a cost increase that is difficult to avoid, but you could ask your home insurance provider for assistance. For instance, your insurance agent could lower how much they value your home, especially if you believe it is a little on the high side.

Swimming Pools

A backyard pool is a large expense for a home that can increase your premiums, mainly due to the cost of the pool itself. A pool is an additional structure that needs insurance in case of damage in a total-loss situation.

The other way a pool increases your home insurance premium is through liability insurance. Consider increasing your existing liability coverage to $500,000 to cover any potential accidents. Adding the additional coverage may only raise your insurance, but the increase will be worth it if an injury happens on your property.

Home Businesses

Your business may be small, but chances are it won't be covered by your basic homeowner's insurance. This can put your career in jeopardy if something bad were to happen to your home.

For example, an online store needs additional protection for inventory, since every product stored in the home is a financial asset that could be lost. A freelance graphic designer will have an expensive computer setup that may not be covered by a basic insurance policy. Any business with clients that visit the home is an added liability due to potential personal injuries, such as a slip and fall during the winter season.

Ask your insurance agent about what additional coverage you need in order to be protected in these situations. You can provide an agent with specific information about your business, and they will offer you a solution for additional protection that you can purchase with an insurance policy.

Home Remodels

Any additional work you do to improve your home will need to be insured. While you may only be finishing a couple hundred square feet of your basement, it is now a finished space that would need to be replaced if damaged. The same can be said of any major home improvement that increases your home's value.

Work with an agent to determine how much these improvements will change your insurance premiums. The increase in your home's value is not always equal to how much you paid for the renovation, especially if you did the job on your own.

American Quality Assurance Group can assist you with any questions regarding increases to your home insurance premiums.