Why Does Home Insurance Increase Every Year? 
Most homeowners policies include a provision that increases the coverage annually to compensate for the increased cost of construction . This annual increase usually results in a 1-3 % increase in premium . The company may have gone to the insurance commissioner and been granted a rate increase which will affect various parts of the policy differently but can result in an increase as well . Otherwise increases are due to changes of conditions or losses incurred on the property itself . 