Does Homeowners Insurance Go Up Every Year? 
The cost of Home Insurance is based on the losses in your area . Extreme weather works in cycles , so a specific area will have several years of very severe storm losses , causing rates to go up . When that cycle ends the losses go down and so do the rates . Of course construction costs tend to trend up , as do the values of everything else , and insurance rates have to adjust to compensate , but without rate increases , insurance companies would not be able to afford to stay in business through the bad years . A great example of this is the state of Florida . After Hurricane Andrew , insurance companies were hit very hard . When they tried to raise rates the state passed legislation limiting rate increases . So , backed into a corner , many insurance companies went broke or pulled out of Florida . Consequently , the largest insurer in Florida is now the state of Florida -LRB- the taxpayers are on the hook for claims if another significant storm hits -RRB- . After several years of no severe storms , that trend is reversing with several insurance companies coming back into the state and the # of policies the state holds is decreasing . 