Why Do Home Insurance Rates Fluctuate? 
Home Insurance premiums can fluctuate for many reasons . The most important thing to keep in mind is that premium reflects risk . So , for example , most policies include some form of an `` inflation guard '' which usually increases the amount of coverage on the home each year . Most policies that I have seen have increased by roughly 4 % each year . Thus , as the coverage increases , the premium will too . Premium will also reflect loss history either of that particular property or the state in general . A bad winter in CT for example will more than likely be followed by some rate adjustment . 